In the Name of Allāh,
the Entirely Merciful, the Especially Merciful
Praise is due to Allāh, Lord of the worlds, may the blessings and peace be upon our master Muḥammad, the last of prophets, on his family, and all his companions.
Resolution No. 170 (8/18) Timeshare Contracts
The Council of the International Islamic Fiqh Academy of the Organization of the Islamic Conference, holding its 18th session in Putrajaya, Malaysia, on 24–29 Jumādā al-Ākhirah 1428h (9–14 July 2007),
Having examined the research papers submitted to the Academy concern- ing Timeshare Contracts,
Having listened to the discussions on the subject,
Resolves
First: Definition of Timeshare
Timesharing refers to joint common ownership or lease of a specific property by several people who take turns occupying the premises across time of space, with the right, in some cases, to specify given times/spaces to each owner.
Second: Types of Timeshares
Timeshares include the following two types:
- Full ownership (of the asset and the usufruct) by purchasing, through a sale contract, a common share of the property to utilize it in succession with the other owners during specific
- Incomplete ownership (of usufruct only) by hiring, through a lease con- tract, a common share of the usufruct of the property to utilize it, in succession with the other owners, during a specific period.
Third: Shariah Ruling on the Principle of Timeshare Ownership
- It is permissible in Shariah to purchase or rent a common share in a specific property and to agree with the other owners, directly or through a managing agent, to use the purchased or rented property in successive terms to be collectively agreed upon. The purchased or rented share can also be traded through sale, gift, inheritance, mortgaging, or any other Shariah-permissible
- Application of the principle of timesharing should satisfy the Shariah conditions for sale and lease contracts.
- In case of leasing, the lessor should bear the costs of the essential maintenance without which the property cannot be utilized, whereas costs of operating and periodic maintenance may be contractually assigned to the lessee. If the lessor performed operating and periodic maintenance, the lessee may be charged only the costs that are normally incurred for similar work or the amount they mutually agreed
In case of sale, maintenance costs have to be borne by the owners subject to their respective shares in the property.
- It is permissible for the owners to exchange their shares among themselves, whether directly or through a specialized
Indeed, Allāh is All-Knowing.
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