Key Money (Badl Al-Khulu): An Islamic Perspective

Habibur Rahman, Noor Mohammad Osmani

Abstract


The key money (badl al-khulu) refers to the amount that one pays to the other who
forgoes his/her right to enjoy the usufruct of the real estate like house, shop and others.
This paper intends to study the legal status of exchanging key money from the
perspective of Islamic law. The study is qualitative in nature and an analytical
method is employed to accomplish the study based on both classical and modern
references of the topic. The study finds that the exchange of key money could be
between the tenant and the landlord or between the current tenant and the
subsequent tenant, or among all these three parties. If the exchange of key money is
made during the lease period then it is permissible. However, if it is made after expiry
of lease period then it is invalid because after termination of the right of tenant the
landlord is more entitled to his/her possessions and he/she may do whatever wishes.
Nevertheless, if the landlord consents to the exchange of key money, and the tenant
makes a new lease agreement with him, then the exchange of key money is valid
despite the expiry of the lease period.


Keywords


Perspective; key money; khulu; badl al-khulu; islamic law

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References


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