Buying and Selling: Ruling on Ownership When Property Is Bought with Another Person’s Money

Practical Laws of Islam as per the teachings of Imam Khamenei

Buying and Selling: Ruling on Ownership When Property Is Bought with Another Person’s Money

English:

Question #1472:

Someone bought property with the money of another person. Is the ownership of the property his or that of the owner of the money?

Answer #1472:

If the very purchase of the property has been made with the money of the other person, and the latter sanctioned the deal, the property is rightfully his. That is, the buyer has no right in it. Otherwise, the deal is void. Yet, if the person who concluded the deal bought the property on trust for himself but paid the price later from the money of another person, the property shall be his and he would remain indebted with the purchase price to the vendor. He is liable for the money paid to the vendor. The latter should return the money to its owner.

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