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A man is renting out some property for a specific rent of 2000 dirhams per month, for a period of five years. But he said to the tenant: If you pay me one million dirhams in advance, then he will reduce the rent by half, and at the end of the rental period, after five years, he will return what is left of the money after deducting the rent from it. What is the ruling on that?
Praise be to Allah.
In fact this transaction consists of both a rental and a loan. Regarding the money that is to be paid in advance, part of it is rent and the other part is a loan.
The landlord will let the tenant off part of the rent in return for this loan.
One of the matters on which the scholars are agreed is that every loan that brings a benefit is prohibited. Based on that, it is not permissible to enter into this contract in this form.
Please see also the answer to question no. 59867 .
And Allah knows best.