Extending a sale contract for an increase in price is Riba Fatwa No: 232798
- Fatwa Date:31-12-2013
ASSALAM O ALAIKUM; i sell a plot in pakistan in the month of july and write a contract as that buyer give me 1/4 in advance and the rest money in the month of December. now he is giving me an offer that this contract should be more longer than 6 months more and u take 30000 per marla more because after 6 months the price of plot will increse as the time passing and location wise. and it will be the consent of both buyer and seller without any problem like cash for buyer and any for seller..... so can i got the same contract longer like 6 months with an amount which we have willingly done or set. and the amount will be HALAL or not.... thanks a lot for guidence.
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His Slave and Messenger. Your agreement with the buyer to extend the time of the contract in return for an increase in the price is forbidden because it is Riba. This is like what the people of the pre-Islamic era of ignorance used to say, 'Either you pay now or you pay more.' Therefore, you are only entitled to the remainder of the price and it is not permissible to condition an additional price (on top of the original price) in return for the delay even if this is with the consent or demand of the debtor (the buyer). Agreeing to the Riba does not make it permissible. Allaah Knows best.