Buyback option for a plaza shop
Party 1 is building a plaza and selling a shop to party 2 for $100,000. The plaza will be ready in 2.5 years. Party 2 will pay full payment of the shop now. Party 2 has the option to sell the shop back to Party 1 after 2 years and before 2.5 years at $115,000.
1. Is this deal permissible under sharia?
2. What sort of documentation is mandatory to be sharia compliant
3. From where can I get sample sharia compliant sample documentation for such deal.
Wa’alaykum as Salam wa rahmatullahi wa barakatuhu,
It is not permissible to bind party 2 to sell back the shop. Rather, he should buy the shop unconditionally. If after 2 years, party 2 decides to sell the shop, he may put it up for sale, and he can decide the price he wants. Alternatively, if he decides to rather keep the shop, he cannot be compelled to sell it back.
For the deal to be Shariah compliant, there can be no conditions in the agreement. The transaction should also be independent and seperate, and not suspended on any future transactions.
قال الطبراني حدثني عمرو بن شعيب، عن أبيه، عن جده أن النبي صلى الله عليه وسلم: نهى عن بيع وشرط، البيع باطل، والشرط باطل (المعجم الأوسط – 4/ 335)