Islamic Law of Transaction: Can Waqf Beneficiaries Transfer or Sell the Usufruct?

Yes, beneficiaries may sometimes transfer the use of the usufruct to another person, but you should not automatically conclude that they may sell it for money in every case.

The first important point is that, in a waqf, there is usually no ordinary private owner whose permission must be obtained. The physical asset has been dedicated as waqf. What controls the beneficiaries is mainly the waqf deed, the founder’s conditions, the nature of the benefit, and applicable Islamic legal rules.

1. Can the beneficiary let another person use the usufruct?

According to the passage you provided, yes, provided the waqf terms or accepted custom do not prohibit it.

For example, a house is made waqf for a group of beneficiaries. Ahmad is entitled to its usufruct. If the waqf arrangement permits it, Ahmad may allow Yusuf to enjoy that benefit.

So:

Waqf asset → remains waqf

Ahmad → entitled to usufruct

↓

Ahmad may allow Yusuf to use the benefit

provided:

waqf terms/custom do not prohibit it

2. Does Ahmad Need Permission From the “Owner”?

This question needs adjustment because with waqf there is ordinarily no private owner like a landlord.

Compare:

Lease:

Ali owns house → Ahmad leases from Ali.

Here Ali is the private owner.

But:

Waqf:

House is permanently dedicated → Ahmad is beneficiary.

Here you do not normally ask:

“Did the owner give Ahmad permission?”

Instead ask:

“Does the waqf deed allow Ahmad to transfer or share his usufruct?”

The founder’s conditions become very important.

3. Example: Waqf Allows Transfer

Suppose Ali establishes a house as waqf and states:

“The beneficiaries may occupy the house themselves or allow another eligible person to occupy it.”

Ahmad is a beneficiary.

Ahmad may allow Yusuf to use it because:

the waqf terms permit transfer of the benefit.

No separate permission from Ali is normally needed after the waqf has been validly created, because Ali no longer treats the house as his ordinary private property.

4. Example: Waqf Prohibits Transfer

Suppose the waqf deed states:

“Each named beneficiary may personally occupy one room, and the right may not be transferred to another person.”

Ahmad cannot simply give his room to Yusuf.

Why?

Because:

Ahmad’s usufruct exists subject to the waqf conditions.

So:

Beneficiary ownership of usufruct does not mean unlimited freedom over the usufruct.

5. What About Selling the Usufruct?

This is more complicated.

“Selling usufruct” usually means giving another person the benefit in exchange for money.

For example:

Ahmad has the right to occupy a waqf shop.

He tells Yusuf:

“Pay me RM1,000 per month and you can use my shop.”

That is not merely allowing Yusuf to use it for free.

It is effectively a lease or compensated transfer of the usufruct.

Whether Ahmad may do this depends on:

• the terms of the waqf,
• the nature of Ahmad’s entitlement,
• whether his right is personal or transferable,
• applicable madhhab rules,
• whether the transaction harms the waqf or other beneficiaries.

So you should not memorize:

“Beneficiary owns usufruct, therefore he can always sell it.”

That is too broad.

6. “Give the Usufruct” and “Sell the Usufruct” Are Different

This distinction matters.

Give another person use

Ahmad tells Yusuf:

“You may stay here.”

No payment.

This may be allowed if the waqf terms and custom permit it.

Transfer for payment

Ahmad tells Yusuf:

“Pay me RM1,000 and you can use it.”

Now Ahmad is trying to create a compensated transaction.

That requires a separate legal analysis.

Therefore:

The passage clearly supports allowing another person to extract the usufruct where the waqf terms/custom permit it, but it should not automatically be read as allowing every beneficiary to commercially sell or lease the usufruct.

7. What Does “Owner’s Permission” Mean Here?

For ordinary property:

Owner’s permission may matter.

For waqf:

the better questions are:

What did the founder stipulate?

↓

What does the waqf deed permit?

↓

What does custom allow?

↓

Does the trustee/mutawalli have authority over this issue?

↓

Does the proposed transfer preserve the purpose of the waqf?

Mutawalli

A mutawalli is the person appointed to administer or manage the waqf.

The mutawalli does not personally own the waqf property. He manages it according to the waqf terms and Islamic law.

8. Example With a Waqf House

A house is dedicated as waqf for university students.

Situation A

Ahmad is an eligible student and lets another eligible student stay with him.

The waqf terms do not prohibit this.

→ May be allowed.

Situation B

Ahmad leaves and rents his room to a businessman for RM2,000 per month.

The waqf was specifically for students.

→ Not automatically allowed, because this may violate the purpose and conditions of the waqf.

Situation C

The waqf deed expressly allows beneficiaries to lease their allocated benefit to another eligible beneficiary.

→ The compensated transfer may then be permissible according to the governing rules.

9. The Key Principle

The usufruct beneficiary does not have the same freedom as someone who owns a house completely.

A total owner may normally decide:

“I own the house and its benefit, so I will rent it.”

But a waqf beneficiary should think:

“I have the benefit because the waqf gives it to me, so I can only deal with that benefit within the limits of the waqf.”

That is the major difference.

Simplest rule to remember

A waqf beneficiary may use the usufruct and may sometimes allow or transfer its use to another person if the waqf deed and custom permit it. However, the beneficiary cannot automatically sell or lease the usufruct merely because he is entitled to it; a compensated transfer must also be allowed by the waqf’s terms and applicable Islamic rules.

And instead of asking “Did the owner permit it?”, for waqf usually ask:

“Did the waqf terms permit it?”