Real Estate - Double Closing

In the US, real estate investors can do ‘assignment’ deals where they get a house under contract and then sell the contract to some one else and keep an assignment fee. They do not actually buy the real estate and from my understanding this is haram because you are not taking possession of the property before selling it. There is another option that can be used instead of an assignment contract and that is called a ‘double closing’. This is where I purchase the property and sell it to my buyer on the same day or concurrently.

A more detailed explanation:
Double closings, or “back to back closings”, occur when two separate real estate settlements on the same property are scheduled sequentially. Effectively they occur at the same time, because the first or A-B or “A to B” closing is conditional on the second or B-C or “B to C” closing. If B-C doesn’t close, then A-B is unwound and is never finalized.

Earnest money is kept from both buyers.

Is this type of transaction Shariah compliant?


Wa alaykum salaam,

This can potentially be structured to be Shariah compliant. But these types of deals need Structuring and reviewing.

We would need to make sure a sale from a Shariah perspective is materialised in the first deal before moving onto the next.

Thank you!

Can you point me to where I can get information on how to structure a sale that is shariah compliant?

I appreciate your help on this.

It would be best to speak to a Shariah advisor and look at your specific contract to structure it in a Shariah compliant manner.