follow up to Ref-No#: 1079

17 Oct 2018 Ref-No#: 1097

With reference to my earlier question 1079, one solution given is that sign the rental contract first, and then sales contract, but how can i sign the rental contract and lease to someone , when i do not own that asset ?. Isnt the proper way to buy first and then rent out.

Answer

Wa’alaykum as Salam wa rahmatullahi wa barakatuhu,

The contract you sign on the rental is subjective; meaning IF you buy the property the property, you will lease it out. It is not a present transaction, but rather a  promise for the future. Thus, the rental agreement is suspended on the purchase of the property. No sale is taking place before ownership, but rather just a commitment.