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Islamic Finance

  Islamic Finance   |   Terms
  • 1301
  • March 12, 2021
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Takhliyah

An action that allows free disposal of something. In a contract of sale (ba’i), this involves allowing the buyer to take the object of sale without placing a hindrance to disposal. In a lease contract (ijarah), this indicates giving the lessee access to enjoy the usufruct of the leased property. Fuqaha agree that in real estate, takhliyah occurs by taking possession, but they disagree as to other types of underlyings (e.g., commodities).

Takhliyah is an Arabic term that translates as removal of hindrance, releasing, or enabling unfettered/ unrestrained disposal.


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