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Sahih al-Bukhari 2346, 2347 (Book 41, Hadith 25) #2246
Rental of Land in Islam

SUMMARY: The Prophet (ﷺ) forbade renting land for the yield on the banks of water streams or for a portion of the yield stipulated by the owner of the land, but it is permissible to rent it for Dinars and Dirhams.

Narrated Hanzla bin Qais: Rafi' bin Khadij said, "My two uncles told me that they (ie the companions of the Prophet) used to rent the land in the lifetime of the Prophet for the yield on the banks of water streams (rivers) or for a portion of the yield stipulated by the owner of the land. The Prophet forbade it". I said to Rafi', "What about renting the land for Dinars and Dirhams?" He replied, "There is no harm in renting for Dinars- Dirhams. Al-Laith said, "If those who have discernment for distinguishing what is legal from what is illegal looked into what has been forbidden concerning this matter they would not permit it, for it is surrounded with dangers".
حَدَّثَنَا عَمْرُو بْنُ خَالِدٍ، حَدَّثَنَا اللَّيْثُ، عَنْ رَبِيعَةَ بْنِ أَبِي عَبْدِ الرَّحْمَنِ، عَنْ حَنْظَلَةَ بْنِ قَيْسٍ، عَنْ رَافِعِ بْنِ خَدِيجٍ، قَالَ حَدَّثَنِي عَمَّاىَ، أَنَّهُمْ كَانُوا يُكْرُونَ الأَرْضَ عَلَى عَهْدِ النَّبِيِّ بِمَا يَنْبُتُ عَلَى الأَرْبِعَاءِ أَوْ شَىْءٍ يَسْتَثْنِيهِ صَاحِبُ الأَرْضِ فَنَهَى النَّبِيُّ عَنْ ذَلِكَ فَقُلْتُ لِرَافِعٍ فَكَيْفَ هِيَ بِالدِّينَارِ وَالدِّرْهَمِ فَقَالَ رَافِعٌ لَيْسَ بِهَا بَأْسٌ بِالدِّينَارِ وَالدِّرْهَمِ‏.‏ وَقَالَ اللَّيْثُ وَكَانَ الَّذِي نُهِيَ عَنْ ذَلِكَ مَا لَوْ نَظَرَ فِيهِ ذَوُو الْفَهْمِ بِالْحَلاَلِ وَالْحَرَامِ لَمْ يُجِيزُوهُ، لِمَا فِيهِ مِنَ الْمُخَاطَرَةِ‏.‏

QUICK LESSONS:
Follow Islamic laws when making agreements; ensure fairness in agreements; protect oneself from harm/injustice; rent out your land using dinar and dirham only .

EXPLANATIONS:
In Islam, renting land is allowed as long as it is done with Dinars and Dirhams. This means that people are not allowed to rent out their land based on what they will get from its yield such as crops or water streams. This is because there are many dangers associated with this kind of rental agreement which can lead to disputes between people. It is important to remember that when making any kind of agreement, we should always make sure that it follows Islamic laws so that everyone involved can be protected from any harm or injustice.

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