Is a Real Estate Middleman Responsible for a Buyer’s Interest-Based Loan?

Answered by Shaykh Muhammad Carr

Question

As a middleman in real estate, is it permissible to structure and assign deals that involve interest-based loans for the end buyer, even if I don’t handle interest myself?

Answer

In the Name of Allah, the Most Merciful and Compassionate.

Thank you for your question. May Allah reward you for ensuring that your vocation aligns with Islamic Law.

“Allah intends ease for you, not hardship.” [Quran, 2:185]

He also says,

“So be mindful of Allah to the best of your ability, hear and obey, and spend in charity—that will be best for you.” [Quran 64:16]

Structuring and assigning deals is permissible and falls within the scope of a service-level agreement (ijara). Ijara is defined as “a contract for a sought-after, known benefit that is permissible and legally deliverable, for a known compensation.” [Ibn Qasim, Fath al-Qarib]

While estate agents support the financing process, their primary responsibilities are to market the property, facilitate communication between parties, and ensure the smooth progression of the sale. The buyer is generally responsible for arranging financing and bears full responsibility for the nature of the financial arrangement he undertakes.

That said, one must maintain a clear inward stance of disapproval toward interest and all impermissible elements, even if one’s involvement is indirect or circumstantial. The Prophet (Allah bless him and give him peace) said,

“When sin is committed on the earth, whoever witnessed it, hated it, and rejected it will be like one who was absent from it. Whoever was absent from it and was pleased with it will be like one who witnessed it.” [Ahmad]

This reminds us that the believer’s heart should never incline toward what displeases Allah (Most High), even when one’s role does not involve direct engagement with the impermissible.

I pray this is of benefit and that Allah guides us all.
[Shaykh] Muhammad Carr
Checked and Approved by Shaykh Faraz Rabbani

Shaykh Muhammad Carr has dedicated his life to studying and transmitting our beautiful deen. His studies have taken him around the globe, where he has benefitted from many luminaries. Under the guidance of his teachers – Shaykh Taha Karan, Shaykh Yaseen Abbas, Shaykh Muadh Ali, and many others – Shaykh Muhammad has grown to appreciate the beauty and benefits of diverse scholarship. He completed his memorization of the Qur’an at Dar al-Ulum Zakariyyah in September 1997 and received an Alimiyya Degree in 2006 from DUAI (Darul Ulum al-Arabiyyah al-Islamiyyah). He is also affiliated with Masjid Auwal in Bo Kaap, Cape Town (the oldest mosque in South Africa), where he serves as a co-imam, and Dar Al-Safa, where he has taught since 2018. As a teacher, he imparts the wisdom of our heritage and tradition by opening the door to students. As an imam, he has the unique opportunity to serve his community in daily life.

In addition to his roles as a teacher and imam, Shaykh Muhammad Carr has contributed significantly to the administrative and advisory aspects of Islamic institutions. Since 2023, he has served as the Administrative Director at The Imam Kurani Institute, contributing to the institution’s growth and development. He continues to pursue traditional Islamic Sciences, possessing a keen interest in Islamic Contract Law and Finance. Shaykh Muhammad has been a Shari‘a Board Member for Islamic Asset Management & Insurance Companies since 2001, aligning financial practices with Islamic principles.