Buying and Selling: Ruling on Conditional Buyback Sales at a Higher Price

Practical Laws of Islam as per the teachings of Imam Khamenei

Buying and Selling: Ruling on Conditional Buyback Sales at a Higher Price

English:

Question #1527:

Some people sell their property with the condition of buying the same later from the buyer at a higher price. Are such deals valid?

Answer #1527:

Such fraudulent deals are ḥarām and void because they are not really intended and they serve as a means to obtain a ribā-bearing loan. However, if the sale was concluded seriously and in a shar‘ī way, there is no harm in buying the property back from the buyer later for the same price or even at a higher one in cash or in credit.

-Imam Khamenei, Practical Laws of Islam, Importance and Conditions of Buying and Selling