Ijarah

Ijarah (Leasing): Literally: the reward given for service rendered. It is derived from the root word ajara to recompense, compensate or to give a consideration or return. Ajr (wage) when used in the context of ijarah means the reward given for work or a service, or a compensation given by the lessee for usufruct in a lease contract. An ajir (worker) (pl. ujar') is a person whose labour is the usufruct, i.e., the subject matter of a lease contract. He could also be called musta'jar (hired) or mu'ajjir (lessor), the owner of the leased property. On the other hand, a musta'jir (lessee) is the beneficiary of the services of a worker or of the leased property. Technically: a contract for transfer of ownership of usufruct for compensation. Some said: sale of a known usufruct for a known compensation. Thus, the lease contract belongs to contracts of financial exchange. Scholars agree that leasing is a lawful contract. The majority of jurists rules that a lease is a binding contract, and they stipulated as a condition for its validity that the usufruct and the compensation must be known. With regard to the time that lease contracts become effective, they are classified into three categories: immediately effective leases, leases effective from a future date, and leases made contingent upon a future event. See ISRA Islamic Financial System: Principles and Operations for further details.

Total Fatwas : 324
No. Title
1 Resolution No. 137 (3/15): Sukuk Al-ijarah
2 A Client Pays Full Rent at the beginning of the Month but Leaves in the middle
3 A Tenant Requests Early Termination of a Lease Agreement
4 Appointing Lessee to Buy Insurance on the Leased Asset
5 Buying an Asset That Is Leased to a Third Party
6 Can a Building Be Rented Out before It Is Built?
7 Can a Contractor Sub-Contract a Job?
8 Can a Fee Be Charged to Transfer a Lease Agreement from One Tenant to Another?
9 Can a Landlord Give Selective Discounts to Some Renters?
10 Can a Tenant Cancel a Lease Agreement before Using the Usufruct?

 

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