Islamic marriage advice and family advice

Brother and sister sharing property

Crowded house.

Assalaam Alaikum,

I would like to know about sharing property in islam, i.e., My sister has inherited land and I want build a house over her land with mutual understanding. Once a building is constructed with my money how to share and prepare the ownerships deed for registration.

Thanking you,

Sultan

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3 Responses »

  1. This is a financial question and not an Islamic one. You're just asking for how to share something. You can figure out how much in percent both of you own the house on the land. After that any appreciation or rent gained from the land would be divided among both of you. Example:

    Land costs $50K
    House on land costs: $150K
    Total cost is $200K, she owns 1/4 of the house and you own 3/4th. If the going rent for the place is $1600/per month then you get $1200 and she gets $400. If after ten years you sell the house at $400K, she makes $100K and you make $300K. If you ever want to buy out her share you would do it at the price of the house at that time. If either of you wants to live there then pay the other party for the going rent. You would pay $400 a month to her while she would pay $1200 in this example.

  2. Too be honest, it sounds like a very bad idea. Mixing family and business is very risky and, if it can be avoided, it should. There's too much that can go wrong with this scenario and, in the end, it could cost you a lot more than just a house: your relationship with your sister.

    If you want to build a house, it's better to find your own land to build it on, and let your sister use her land however she wishes to use it.

  3. Purchase the land from her. Now it is yours. Don't be cheap or try a fast one with your relative. Pay a fair price. Hire a lawyer. Tell her to hire her own lawyer. Put everything in writing. Oh, and make sure the building you build is a good distance away from your sister's property. Good fences make the best neighbors.

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