In the Name of Allaah…
Shaykh Saalih al-Fowzaan mentions that the Council of Senior Scholars has studied the modern “Rent-to-Own” schemes, and they have ruled that they are impermissible transactions, due to the prohibition of two contracts in one.
Video: http://www.safeshare.tv/w/xetfuzAwnZ (different)
Rent-to-own schemes may also include some so-called “installment plans” for automobiles and property, where legal ownership remains with the seller until the payments are complete, which is essentially a rent-to-own contract cleverly disguised as an installment plan.
As an important reminder, we live in times of widespread deception and corruption, so let every Muslim be extremely cautious in how he approaches complex business transactions.
Written by: Moosaa Richardson