Q 3: What is
the ruling on renting coconut trees?
If a man owns a coconut tree, and takes 1000 Pesos, and for five years the yield of the coconut tree belongs to whomever paid the fee. Is this permissible or not?
This sale is prohibited, as it entails lack of knowledge and uncertainty. (Part No. 14; Page No. 85) No one knows what the yield of the trees will be throughout the next five years. They may or may not bear fruit and the amount may be great or small. It was authentically established that the Prophet (peace be upon him)
forbade selling fruits until they become red or yellow.
It was also authentically established that he
forbade the selling of grains until they become hard
and he also
forbade Mu`awamah sale (selling fruits for a year or several years ahead).
(Part No. 14; Page No. 86) He also
forbade selling fruits years ahead.
May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.