Atlanta Interest Free Investment Fund for House Purchase
Posted: 10 Shawwal 1423, 15 December 2002
|Q.) I have financed the house through Atlanta Interest Free Investment Fund LLC that finance the house based on the shared ownership. The person each month pays the rent + principal amount till he has bought the 100% share in the house. Now I have two questions:
1. Can the rent amount be different than the market rent to make the profit closer to a certain percentage?
2. Is it permissible to ask the resident tenant to pay the home insurance and all the other expense occured at home? [Iftikhar Ahmed]
A.) I cannot comment without a careful study of the agreements underlying the transaction. Basic requirement is that all these agreements are approved by a competent Shariah Board or by a Shariah Scholar.