What is Bay’ al-Wafaa’ and what are the rulings concerning it?


Praise be to Allaah

Bay’ al-Wafaa’ means selling something
on the condition that when the vendor pays back the money he accepted, the purchaser will
return the item to him.

The scholars have decided the following:

This transaction is in reality a loan which leads to benefits for the
lender, and is an attempt to get around the prohibition on ribaa. The majority of scholars
said that this is not a valid transaction.

This contract is not permissible according to sharee’ah.