Buying and Selling: Ruling on Guardian’s Liability for Potential Loss in Unregistered Property Purchase

Practical Laws of Islam as per the teachings of Imam Khamenei

Buying and Selling: Ruling on Guardian’s Liability for Potential Loss in Unregistered Property Purchase

English:

Question #1505:

In his capacity as his orphan brothers’ guardian, a man bought them a plot of land with their own money. However, he did not get an official document for the purchase of land in the hope that he would get it sometime in the future. He would have hoped to sell it at a higher price. He is now apprehensive that someone might claim the ownership of the land or that it might be confiscated. Furthermore, if he sells the land now, it might not fetch even the original price he paid for it. Should he stand to indemnify the children if the land is sold at a loss?

Answer #1505:

If he is really the shar‘ī guardian of the orphans and bought the land with their interest and welfare in mind, he is not liable to anything. Conversely, the purchase transaction is ruled to be fuḍūlī and its validity depends on the permission of their shar‘ī guardian or theirs after they have attained ritual maturity. He should compensate the children for any loss.

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