Fatwa No : 84842
Buying a piece of land and then selling it back to the same person later at a higher price.

Buying a piece of land and then selling it back to the same person later at a higher price.

What do the respected Muftis say regarding the following matter:

Previously, I, purchased 12.5% shares of a piece of land in Gwadar from Mr. ___ about two and a half years ago for 6.5 million rupees (Rs. 6,500,000). A project was to be developed on this land, but it could not be initiated during this two-and-a-half-year period.
Now, Mr. ___ wishes to buy back my shares, and I agree to sell them. However, I want to sell my shares for 13 million rupees (Rs. 13,000,000). Mr. ___ says that it is not permissible for me to take more than the original 6.5 million rupees, and that this might be *riba* (interest).
I would like to know from the honorable scholars whether selling my own shares at a higher price than the original purchase price constitutes *riba* (interest). Kindly provide the Shar‘i (Islamic legal) ruling on this matter.
Note: The land never came into my possession, and I have not exercised any kind of control or ownership over it.

الجوابُ حامِدا ًو مُصلیِّا ً

The questioner, when he purchased 12.5% of the said land from Mr. ___ two and a half years ago, became a partner (co-owner) with him in that land. Accordingly, the profit and loss related to that land will also be borne by Mr. ___ in proportion to his share.
Therefore, if the questioner wishes to sell his share of the land to his partner for a price higher than the original purchase price (Rs. 6,500,000) and earn a profit from it, such a transaction is permissible according to Shariah. This transaction does not fall under the category of interest (riba) in Islamic law.

مأخَذُ الفَتوی

كما في فقه البيوع: وعلي هذا فإن بيع قطعة غير معينة من جملة القطاعات لا يجوز عند الإمام أبي حنيفة رحمه الله تعالي, ويجوز عند صاحبيه والظاهر إن كانت جهالة التعيين تفضي إلى المنازعة، فالأخذ بقول الإمام أبي حنيفة أولي، وإن لم تكن مفضية إلى المنازعة فقول الصاحبين أولي بالأخذ (إلي قوله) وكذلك ينبغي أن يجوز لمن اشتراه أن يبيعه إلي آخر علي قول أبي يوسف رحمه الله تعالي لأنه يجوز بيع العقار قبل قبضه اھ (۱/ ۳۷۷، ۳۷۸)۔
و في حاشية ابن عابدين (رد المحتار): مطلب فيما إذا اشترى أحد الشريكين جميع الدار المشتركة من شريكه قلت: علم من هذا ما يقع كثيرا، وهو أن أحد الشريكين في دار ونحوها يشتري من شريكه جميع الدار بثمن معلوم فإنه يصح على الأصح بحصة شريكه من الثمن وهي حادثة الفتوى اھ (5/ 57) والله أعلم بالصواب۔