Is Buy Back Conditions in a sale permissible? 

Q. My friend wants to sell his car to me for a Million Rand on condition that I sell the car back to him after one year. Is this condition permissible?

A. A buy back condition is an invalid (Faasid) condition in a transaction.

Thus, if your friend sells a car to you on condition that you sell the car back to him after one year, the transaction will be valid but the condition becomes invalid (Faasid) and is not binding. In that case, it will not be necessary and binding upon you to sell the car back to your friend after one year.

Alternatively, if the buyback condition is excluded as a condition from the transaction and you unilaterally undertake to sell the car to your friend after one year, the transaction will be valid and the undertaking will be morally binding. (Ahsanul Fataawa 6/507)

Allah Ta’ala Knows Best

Mufti Ismaeel Bassa

themufti.com