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Buy Back Conditions in Transactions


Nasihah (Advice): Earning a Halaal living


Sayyiduna Miqdaam radiyallahu anhu reported that Rasulullah (sallallahu ‘alayhi wa sallam) said: “No person partakes of a better meal than that which one has earned by working with one’s own hands. The Prophet of Allah, Dawood (Alayhi salaam) used to eat from the earnings of his manual labour.” [Sahih Bukhari]



Question and Answer:


  1. My friend needs cash immediately. He wants to sell his car to me for Half a Million Rand on condition that I sell the car back to him after one year. Then he will pay me back Half a Million Rand for the car. Is this condition permissible?


(Question published as received)


  1. 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)


And Allah Ta’ala Knows Best


Mufti Ismaeel Bassa

Mufti Moosa Salie


(The answer hereby given is specifically based on the question asked and should be read together with the question asked. Islamic rulings on this Q&A newsletter are answered in accordance to the Hanafi Fiqh unless otherwise stated.) 


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Email: fatwa@jamiat.org.za
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