Q: I live in
`Ar`ar
and I own a piece of land which I wanted to enclose with a fence but I do not have enough money. I went to one of the merchants in town asking for a loan to build the fence around my land but he refused. I proposed that he buys half the land but he declined my offer. After a few days, I went to him again and offered to give him half my land in return for a certain amount of money and he agreed and lent me the money. A year has elapsed since then and I heard from some knowledgeable people that this transaction falls under the category of prohibited Riba (usury). I am confused as I did not know before that it was Riba.My question is now: Is it permissible to annul the contract and return the money to him? What should I do? May Allah reward you well!
A:
The transaction you made with this man, who gave you the loan in return for half your land that you want to enclose, is Riba. This is because
the loan is given in order to gain a conditioned benefit and this is Haram (prohibited). Both of you share in the sin (Part No. 14; Page No. 125) if you knew it is Haram when you made the contract. To annul the contract you must refer the matter to the Shari`ah court unless you both agree that you give the money back to him and you regain possession of your land. In this case, you do not have to resort to a Shari`ah court. However, both of you should repent to Allah (Glorified be He). May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.
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