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Question:
Please assist me in the scenario below:
I own a piece of land. Is it permissible that I rent out this land to a car dealer who will pay me R1000 for every car sold? Jazakallah
Answer:
In the Name of Allāh, the Most Gracious, the Most Merciful.
The procedure in the enquired situation is incorrect. It would not be permissible for one to rent their land to a car dealer who in turn will pay him R1000 for every car sold.
In principle, the lease rental may be in cash, kind, or in lieu of a service. However, the rental must be specified. In the case where the rental is subject to changes, as is in this case, it must be determined according to a certain benchmark which should be subject to a ceiling, on both maximum and minimum levels.
The rental being tied up to the sale of the cars will imply jahālah (ambiguity) which renders the transaction invalid.
One of the reasons for the prohibition of jahālah (ambiguity) is that it renders the parties susceptible to an unforeseen loss. It is possible that due to the lack or loss of car sales, the lesser will suffer.
And Allāh Taʿālā knows best.
AAOFI Standards, vol. 1 pg. 245.
An introduction to Islamic Finance, pg. 171.