• EN (English)
Fatwa ID: 87268
Title: Buying apartment where the building takes up a loan with interest
Category: Financial Transactions
Scholar: Dr. Hatem al-Haj
Date: 08/10/2012

Question

In Norway if you buy an apartment in a building, the building can take up a loan with riba to fix things on the building. Then the owners of apartments in the building get an increase in their monthly expenses to pay down the loan. In some buildings you can chose to pay your part right away, if you can afford it, but in other buildings you don’t have this option.

1. Is it allowed buying an apartment and paying the loan monthly as everyone else?

2. If this is not allowed, is it allowed to buy an apartment and pay the loan right away, if they have this option?

3. If it’s only allowed to buy an apartment and pay the loan right away, what will you do if the building later on decides to take a new loan and you cannot pay your part right away?


Answer

 

All praise be to Allah, and may His blessings and peace be on His last messenger, Muhammad,

You should not obtain a loan with interest, and you should not approve of it if you have a say in this. When you buy, pay your loan off right away. Later on, you should also pay your part right away. If it is impossible, then you are compelled to comply, and it is hoped that Allah will forgive you.

Allah knows best.