Is It Permissible to Wholesale Real Estate?

Hanafi Fiqh

Answered by Shaykh Abdul-Rahim Reasat

Question

Is it permissible to wholesale real estate? Wholesaling involves the buyer finding an undervalued real estate property for sale, putting it under contract for purchase, and then assigning the contract to another investor for a fee.

Answer

Yes, this means of wholesaling would be permissible to engage in. In essence you are facilitating the purchase of a piece of land for a fee. This is similar to the role estate agents play in selling houses, and because there are no impermissible elements that would render a sale problematic, it is permissible. [Maydani, Al-Lubab fi Sharh al-Kitab]

May Allah grant you the best of both worlds.

[Shaykh] Abdul-Rahim Reasat
Checked and Approved by Shaykh Faraz Rabbani

Shaykh Abdul-Rahim Reasat began his studies in Arabic Grammar and Morphology in 2005. After graduating with a degree in English and History he moved to Damascus in 2007 where, for 18 months, he studied with many erudite scholars. In late 2008 he moved to Amman, Jordan, where he continued his studies for the next six years in Sacred Law (fiqh), legal theory (Usul al-fiqh), theology, hadith methodology, hadith commentary, and Logic. He was also given licenses of mastery in the science of Quranic recital and he was able to study an extensive curriculum of Quranic sciences, tafsir, Arabic grammar, and Arabic eloquence.