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Sahih Muslim 1548b (Book 21, Hadith 145) #11070
Renting Land on a Share Basis

SUMMARY: It is permissible to rent land on a one-third or one-fourth share basis.

Rafi b. Khadij (Allah be pleased with him) reported: We used to give land on rent, and we rented it on one-third or one-fourth share. The rest of the hadith is the same.
وَحَدَّثَنَاهُ يَحْيَى بْنُ يَحْيَى، أَخْبَرَنَا حَمَّادُ بْنُ زَيْدٍ، عَنْ أَيُّوبَ، قَالَ كَتَبَ إِلَىَّ يَعْلَى بْنُ حَكِيمٍ قَالَ سَمِعْتُ سُلَيْمَانَ بْنَ يَسَارٍ، يُحَدِّثُ عَنْ رَافِعِ بْنِ خَدِيجٍ، قَالَ كُنَّا نُحَاقِلُ بِالأَرْضِ فَنُكْرِيهَا عَلَى الثُّلُثِ وَالرُّبُعِ ‏.‏ ثُمَّ ذَكَرَ بِمِثْلِ حَدِيثِ ابْنِ عُلَيَّةَ

TOPICS
rent  *  land  *  share

QUICK LESSONS:
Enter into agreements with others fairly and honestly

EXPLANATIONS:
This hadith discusses the permissibility of renting land on a share basis, which means that the renter and owner of the land will agree to split any profits made from the land in an agreed upon ratio. For example, if they agree to split it in thirds, then each party will receive one third of any profits made from the land. This hadith teaches us that it is permissible for people to enter into such agreements as long as both parties are in agreement and understand what they are agreeing to. It also teaches us that we should be fair when entering into contracts with others and ensure that both parties benefit from them equally.

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