Asalamlikum My question is regarding home finance. If the employer buys as house in their name from a bank and there is an agreement between the employee and the employer that they would give the house to the employee as a part of his salary package and deduct certain amount from his salary. After say 7-8 years that deduction shall be considered payment towards the house and the house will be transferred in the name of the employee. Pls note the house shall remain in the name of the employer during this period and the employee has no dealing with the bank directly. The company is making the payment to the bank and deducting from the employee's salary. Is the transaction between the employee and the employer halaal?
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
In order for us to advise you, answer the following,
1.Is the employer a muslim or non-muslim?
2. Did the employee appoint the employer as his representative(wakeel) to purchase the house on his behalf by deducting a portion of his salary?
3. Once the employer paid for the house, does he have a right not to give the house to the employee? Does the employee have a claim over the house by virtue of his wages being deducted?
And Allah Ta’āla Knows Best
Student Darul Iftaa
Checked and Approved by,
Mufti Ebrahim Desai.