deposit

Taking a deposit

Q: Is it permissble to do a service in the following mannner:

1. The worker explains the service and its disadvantages to the client.

2. If the client wants the service, he pays a certain portion of the payment upfront as a deposit.

3. The worker then uses some of this deposited amount to purchase a facility that allows him to complete the service.

4. The work is then done and shown to the client for approval or rejection within 25 days.

5. If the client approves it: the client pays the remaining amount, and the completed work is given to client, along with ownership of the facility.

6. If the client does not want it: the worker then cancels the facility, receives a full refund from the facility provider, and returns the full deposited amount to the client.

Option of purchasing a car from the bank after renting it from the bank

Q: Islam banks are giving away cars on the principle of Ijarah.

The bank buys a car and gives it to you on a monthly rent specified in the contract. The bank also keeps a security deposit. The ownership of the car remains with the bank during the rental period. You have the option to return the car at any point in time and get your security deposit back but the bank charges you a certain amount of money if you return the car before the expiry of the rental agreement duration specified in the contract. At the end of the rental agreement, you can either return the car and get your security deposit back OR get the ownership of the car transferred in your name in which case you have to forfeit your security deposit and you might even have to pay an additional fee.

Is transfer of ownership at the end of a rental agreement is permissible in Islam?

Landlord holding back deposit

Q: I have recently moved out from a house and I'm having some problems with regards to receiving my deposit which I innitialy gave when I moved in. The situation is as follows: 14 days before the month could end I made my intention known to the landlord that I am looking to move out and 8 days before the month could end I confirmed that I'll be moving out, however the landlord says that I gave a too short notice and she can't return the deposit and I did not give much time for her to get another tenant and I did not give 1 months notice (keeping in mind that we have not renewed a lease). She will now only give me the deposit when she gets a new tenant. Please advice regarding the shar'ee point of view in this situation.