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Islamic Law of Transaction: Preemption Rights in Vertical Neighbourhood and Divisible Properties
Introduction
Islamic jurists discussed whether vertical neighbours, such as owners of the upper floor and lower floor of the same building, have preemption rights (shufʿah). They also debated whether preemption applies only to divisible properties or also to indivisible properties.
The Hanafi school adopted a broader approach by recognising preemption in both situations, while the other major schools imposed more restrictions.


Case Scenario
Ahmad owns the ground floor of a two-storey building.
Bilal owns the upper floor.
Bilal sells the upper floor to Khalid without first offering it to Ahmad.
Ahmad believes that, since they share the same building, he should have the right of preemption.
Another situation arises where two partners jointly own a small well that cannot practically be divided.
One partner sells his share.
The question is:
Can the remaining partner exercise preemption over the upper floor or over an indivisible property?
The answer differs among the schools of Islamic law.


Q1. What is meant by a vertical neighbourhood?
Answer:
A vertical neighbourhood exists when two people own different parts of the same building, such as:
  • One owner has the ground floor.
  • Another owner has the upper floor.
Although they are not side-by-side neighbours, they are neighbours vertically because they occupy different levels of the same building.


Q2. What is the Hanafi ruling on vertical neighbourhood?
Answer:
The Hanafis ruled that both the upper floor and lower floor are immovable properties.
Therefore, they are eligible for preemption.
If one owner sells his portion, the other owner may exercise the right of preemption.
This opinion is generally regarded as practical because both owners remain closely connected through the same building.


Practical Example
Ahmad owns the first floor of a building.
Bilal owns the second floor.
Bilal sells his floor.
According to the Hanafis,
Ahmad has the right to exercise preemption because they share ownership within the same building.


Q3. Why did the Hanafis allow preemption for upper and lower floors?
Answer:
The Hanafis believed that both parts of the building remain immovable property.
The owners continue to share the same structure,
which creates the possibility of disputes or inconvenience if a stranger becomes the new owner.
Therefore,
preemption protects the existing owner from possible harm.


Q4. What is the Hanbali and majority Shafiʿi ruling?
Answer:
The Hanbalis and most Shafiʿis ruled that the upper floor does not qualify for preemption.


Why?
They reasoned that the upper floor depends on the roof of the lower floor as its foundation.
Since the roof itself is not regarded as permanently fixed like land,
they viewed the upper floor as having a legal status closer to movable property.
For this reason,
they did not establish preemption for it.


Practical Example
Ahmad owns the ground floor.
Bilal owns the upper floor.
Bilal sells his portion.
According to the Hanbalis and most Shafiʿis,
Ahmad cannot exercise preemption.


Q5. What is a divisible property?
Answer:
A divisible property is one that can be physically divided without destroying its usefulness.
Examples include:
  • Large plots of land.
  • Large farms.
  • Spacious buildings.


Q6. What is an indivisible property?
Answer:
An indivisible property cannot be fairly divided because doing so would destroy or seriously reduce its usefulness.
Examples include:
  • A very small house.
  • A well.
  • A mill.
  • Certain small buildings.


Q7. What is the Hanafi ruling on divisible and indivisible properties?
Answer:
The Hanafis ruled that preemption applies to both divisible and indivisible properties.
They believed that the purpose of preemption is to prevent harm caused by unwanted partnership or neighbourhood.
That harm exists whether the property can be divided or not.


Practical Example
Two people jointly own a small village well.
One partner sells his share.
According to the Hanafis,
the remaining partner may exercise preemption even though the well cannot be divided.


Q8. What is the view of the Malikis, Shafiʿis and Hanbalis?
Answer:
Most Malikis, Shafiʿis and Hanbalis ruled that preemption applies only to divisible properties.
They excluded indivisible properties from preemption.


Why?
They relied on the Hadith of Jabir concerning undivided property and reasoned that the purpose of preemption is mainly to avoid harm resulting from the division of property.
If a property cannot be divided,
this reason does not apply in the same way.


Practical Example
Two people jointly own a very small mill.
One partner sells his share.
According to the majority of the Malikis, Shafiʿis and Hanbalis,
the remaining owner cannot exercise preemption because the mill cannot practically be divided.


Q9. Why did the schools disagree on indivisible properties?
Answer:
The disagreement arose because they understood the purpose of preemption differently.
The Hanafis focused on preventing harm caused by introducing a new neighbour or partner, regardless of whether the property could be divided.
The majority of the other schools focused on preventing harm arising from the division of property, making divisibility an important condition.


Q10. Which opinion appears more practical?
Answer:
Many scholars consider the Hanafi view practical because disputes and inconvenience may arise even in indivisible properties.
The possibility of conflict with a new co-owner exists whether or not the property can physically be divided.


Case Scenario Revisited
Original Situation
Ahmad owns the ground floor.
Bilal owns the upper floor.
Bilal sells his portion.
Hanafi View
Ahmad has preemption because both floors are immovable property within the same building.
Hanbali and Majority Shafiʿi View
No preemption exists because the upper floor is not treated as an immovable property eligible for preemption.


Second Situation
Two partners jointly own a small well.
One partner sells his share.
Hanafi View
Preemption applies because the purpose is to prevent harm caused by introducing a new partner.
Majority View
No preemption exists because the well is indivisible.


Critical Analysis
Why did the Hanafis adopt a broader approach?
The Hanafis concentrated on the practical purpose of preemption.
Whether the property is divisible or indivisible,
introducing a new neighbour or partner may still cause disputes.
Therefore,
they applied preemption more broadly.


Why did the majority restrict preemption?
The Malikis, Shafiʿis and Hanbalis interpreted the legal evidence more narrowly.
They viewed preemption as mainly protecting partners in divisible property where physical partition is possible.
This reduced restrictions on buyers and preserved greater freedom in commercial transactions.


Modern Relevance
Today, apartment buildings, condominiums and duplex houses involve vertical ownership similar to the situations discussed by classical jurists. Likewise, jointly owned facilities such as wells, elevators and shared infrastructure may raise similar questions about balancing ownership rights and preventing disputes. These classical opinions continue to provide useful guidance for modern property law.


Main Principles Derived from the Discussion
1. Vertical neighbours are owners of different floors within the same building.


2. The Hanafis recognise preemption between upper-floor and lower-floor owners.


3. The Hanbalis and most Shafiʿis do not recognise preemption for the upper floor.


4. The Hanafis allow preemption in both divisible and indivisible properties.


5. The majority of the Malikis, Shafiʿis and Hanbalis restrict preemption to divisible properties.


6. The disagreement reflects different understandings of the purpose of preemption.


Conclusion
Islamic jurists differed on whether preemption applies to vertical neighbours and indivisible properties. The Hanafi school adopted a broader approach, recognising preemption for owners of upper and lower floors and extending it to both divisible and indivisible properties because the main objective of preemption is to prevent harm arising from unwanted partnership or neighbourhood. In contrast, the Hanbalis and most Shafiʿis denied preemption for upper floors, while the majority of the Malikis, Shafiʿis and Hanbalis limited preemption to divisible properties. Their rulings were based on different understandings of the legal evidence and the purpose of preemption.
Answers to Short Answer Questions (SAQ)
1. What is meant by a vertical neighbourhood?
Ownership of different floors within the same building.
2. Do the Hanafis allow preemption between upper-floor and lower-floor owners?
Yes.
3. Why do the Hanafis recognise preemption for vertical neighbours?
Because both floors are considered immovable property and the close relationship may lead to disputes if a stranger becomes the new owner.
4. What is the Hanbali and majority Shafiʿi ruling on upper floors?
They generally do not recognise preemption.
5. Why do the Hanbalis reject preemption for upper floors?
Because they do not treat the upper floor as an immovable property eligible for preemption.
6. What is a divisible property?
A property that can be physically divided without losing its usefulness.
7. What is an indivisible property?
A property that cannot be fairly divided, such as a small house, a well or a mill.
8. What is the Hanafi ruling on indivisible properties?
Preemption applies to both divisible and indivisible properties.
9. What is the majority view regarding indivisible properties?
Preemption applies only to divisible properties.
10. What is the main reason for the disagreement among the schools?
They differed on whether the main purpose of preemption is preventing harm from new partnership generally or preventing harm specifically related to divisible property.

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