Question:

How is it to give an owner of a house, upon his request, some money, for instance, Rs. 20,000, and then live in his house for five or ten years? Then after the time ends, take back his money and leave the house. Is this permissible? Over here, this is called ‘dhanawat ghar’. There is no rent. A person give money, lives for a few years, then after the time period, he takes his money back and returns the house.

Answer: حامدا ومصليا ومسلما

This is a case of benefitting from the house given as collateral. This is not permissible in Shariah. This is also a form of riba (interest).

And Allah Ta’ala knows best.

(Hazrat Mufti) Ahmed Khanpuri (May Allah preserve him)

Mahmoodul Fatawa Vol.4 Pg.733-734