Real Estate Brokerage
Posted: 20 Rabi-u-Thani 1424, 29 May 2005
|Q.) I am taking this opportunity to ask you
a question which
could help me in seeking the halal earnings.
I live in Canada and want to become a real estate agent. But
somebody told me that it is not permissible since it involves mortgages
and conventional mortgage loans involve interest and a real estate
agent will be a witness in the process of real estate transaction. So
the earnings from the transaction would not be halal.
What if an agent refers or asks the buyer to go to so and so
bank for his mortgage? And as you know that nowadays there are very few
institutions in Canada that offer Shariah mortgage. Further, only
Muslims will get Shariah mortgage and not non-Muslims.
Please explain whether being a real estate agent is completely
not permissible or are there any circumstance in which real estate
earnings could be halal. [Muhammad Babar]
A.) It would be permissible for you to act as an
estate broker in securing a sale or purchase of a house for your client
as long as you do not take any part in advising, facilitating, or
securing a conventional loan for your client. Hence, being a broker is
not categorically haram unless you take part somehow in the
mortgage part of it. You may be able to overcome the representation of
the mortgage by acquiring a proof of the ability of payment on part of
the buyer (however he may be arranging that payment), and pass that
onto the seller, and let them finalize the deal.
There is a shariah compliant house financing company that has
recently started in Canada which you may able to use as an alternative
to the conventional mortgages. Their website is http://www.umfinancial.com/
And Allah knows best.