Q. What is the ruling on purchasing property Off-Plan?
A. The concept of purchasing property Off-Plan is similar to the Islamic concept and contract of Istisnaa’ that entails construction and development of property.
This means that the developer and purchaser enter into a contract and mutually agreed upon all the specifications of the construction and development, the fixing of the price and terms of payment. The developer undertakes to construct and develop the property as mutually agreed upon with the purchaser and delivers the property to the purchaser upon its completion at which point the property enters the ownership of the purchaser.
Based on a contract of Istisnaa’ entered into between the developer and purchaser, it is permissible to purchase property Off-Plan. It is important to ensure that the contract of Istisnaa’ is structured correctly to ensure that it is Shariah-Compliant. (Durarul Hukkaam 1/156 – Al-Bahrur-Raaiq 6/185 – Hindiyyah 4/517)
Allah Ta’ala Knows Best
Mufti Ismaeel Bassa