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The question

Is it permissible for real estate offices and companies to fine the tenant 500 dirhams upon retrieving checks, and to charge him two months' worth of rent if the contract is terminated before its term, and what is the meaning of the scholars' statement: "It is not permissible to impose a penalty clause for delaying the delivery of the object of sale, because it is considered a debt, and it is not permissible to stipulate an increase in debts upon delay"?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

It is not permissible to stipulate a fine for late payment of debts, including property rent and the price of deferred sales, because that is usury (riba), which is forbidden. As for stipulating an amount upon terminating a lease before its due date, this is a permissible penalty clause, because the lease contract is binding on both parties, and the lessor has the right to the full rent, or to stip stipulate two months' rent for accepting the termination, unless the condition involves something forbidden. Penalty clauses are permissible in all financial contracts except those in which the original obligation is a debt, such as late payment of installments in an installment sale.

Summarized from the full answer at Ftawy · imported

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Source platform
Ftawy
Original fatwa ID
20033
Imported
Translation status
Source text, unreviewed
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