Early settlement Discount

Shortened Question:

Is it permissible to ask for an early settlement discount after the contract is sealed?

Question:

I purchased a property with my father’s money. He paid R 1.25 m for the property. He then sold it to me for R 1853537.28, at a profit on terms, payable over seven years. He also lent me R 150 k to revamp the building. If I am able to sell the property, can I ask for an early settlement discount calculated pro rata, based on what the amount would have been had the repayment been over a shorter period. Or can the seller offer me an early settlement? Jazaakallah.

Answer:

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

It is our understanding that you purchased a property for R1.25m from your father`s money for your father. Thereafter, he sold you the house for R1853537.28.

In principle, you as the purchaser is bound to pay the full purchase price of R1853537.28 to your father, even if you settle your account earlier[1]. You may request your father for a discount. It is your father`s prerogative to accept your request for a discount or not. If he does accept to give you a discount, that will be a gesture of goodwill from his side as he is not bound to give you a discount upon an early payment of the debt[2].

And Allah Ta’āla Knows Best

Hanif Yusuf Patel

Student Darul Iftaa
UK

Checked and Approved by,
Mufti Ebrahim Desai.

 

 

 

References

[1] ومن هنا ذهب جمهور العلماء إلى القول بتحريم (ضع وتَعجَّل)

[Buhooth fi Qadhaya Fiqhiyyah Mu`asirah, p.28]

وبهذا نأخذ، من وجب له دين على إنسان إلى أجل، فسأل أن يضع عنه ، ويعجل له ما بقي ، لم ينبغ ذلك ،لأنه يعجّل قليلا بكثير دينا، فكأنه يبيع قليلا نقدا بكثير دينا ، وهو قول عمر بن الخطاب وزيد بن ثابت وعبد الله ابن عمر. وهو قول أبي حنيفة

[Al-Muwatta li al-Imam Muhammad, 1:334]

إذا كان عليه دين مؤجل، فقال لغريمه: ضع عنّي بعضه وأعجل لك بقيته، لم يجز

[Al-Mugni li Ibn Qudamah ma`a as-Sharh al-Kabeer, 4:174-5]

وأما الربا في الدين فهو على وجهين: أحدهما أن يبيع رجلا متاعا بالنسيئة فلما حل الأجل طالبه رب الدين قفال المديون، زدني في الأجل أزدك في الدراهم ففعل ذلك ربا. والثاني أن يقول رب الدين للمديون قبل محل الأجل أعطني مالي فأحط عنك بعضا من ديني ففعل فإن ذلك ربا للمديون ولا يحل له ذلك

[An-Nutaf fi al-Fataawaa, p.296, Dar al-Kutub al-Ilmiyyah, Beiruit]

[2] من يسر على معسر يسر الله عليه في الدنيا والآخرة: عن أبي هريرة قال قال رسول الله صلي الله عليه وسلم

[Ibn Majah, 2412]

قال رسول الله صلي الله عليه وسلم: من أحب أن يظله الله في ظله فلينظر معسرا أو ليضع له

[Ibid, 2414]

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Posted in Buyoo' (Money-related issues) on 17th Jan 2016 by Our Imam | 1142 Views