Islamic Law of Transaction: Can the Owner of the Asset Sell It While Another Person Owns the Usufruct?

Yes, but we need to distinguish two different situations.

Suppose:

Ali → owns the house itself

Ahmad → owns the usufruct for 10 years

Ali has partial ownership of the asset, while Ahmad has partial ownership of the benefit.

1. If Ahmad’s usufruct remains in force

Ali cannot sell the house as if Ahmad’s usufruct does not exist. Ahmad already has a legal right over the benefit, and Ali cannot destroy that right simply by selling the asset.

If the applicable rules allow Ali to transfer his ownership of the bare asset, the buyer would normally receive the property subject to Ahmad’s existing usufruct.

For example:

Ali owns house

↓

Ahmad has 10-year usufruct

↓

Ali transfers his ownership interest to Yusuf

↓

Yusuf becomes owner of the physical property

BUT

Ahmad keeps his usufruct until it expires

So Yusuf cannot immediately tell Ahmad:

“I bought the house, so you must leave.”

Ahmad’s earlier legal right must still be respected.

The important principle is that a person cannot dispose of another person’s legally established right without that person’s authority. This is consistent with the Hanafi principle that a person cannot deal with another person’s property/right without permission or legal authority. 

⸻

2. What If the Usufruct Owner Agrees?

This is the easier situation.

Yes — if Ahmad agrees to give up or terminate his usufruct in a legally valid way, the two elements can reunite.

Before agreement:

Ali → property

Ahmad → usufruct

Then Ahmad validly gives up his usufruct:

Ahmad’s usufruct ends

↓

Usufruct returns to Ali

↓

Ali now has:

Property + Usufruct

↓

Total Ownership

Ali can then sell the house with full ownership to Yusuf.

So:

Ali → total ownership

↓

Sale

↓

Yusuf → property + usufruct

↓

Yusuf obtains total ownership

⸻

3. Another Possibility: Ahmad Agrees to the Sale but Keeps His Usufruct

Be careful: “Ahmad agrees to the sale” does not necessarily mean “Ahmad gives up his usufruct.”

Those are two different agreements.

Example

Ahmad says:

“I agree that Ali may sell the house, but I want to keep my right to live there for the remaining five years.”

Then the result may be:

Ali sells physical ownership to Yusuf

↓

Yusuf becomes owner of the house

BUT

Ahmad continues to hold the five-year usufruct

So after the sale:

Yusuf → asset

Ahmad → usufruct

Yusuf therefore acquires partial ownership, not immediate total ownership.

⸻

4. If Ahmad Agrees to Surrender His Usufruct

Now suppose Ahmad says:

“I agree to end my usufruct completely so that Ali can sell the house free from my right.”

Then:

Ahmad’s usufruct terminates

↓

Ali’s asset + usufruct reunite

↓

Ali has total ownership

↓

Ali sells to Yusuf

↓

Yusuf gets total ownership

That is very different from merely agreeing that a sale may occur.

⸻

5. Simple Example

Ali owns a house.

Ahmad has a right under a valid arrangement to live there until 2030.

Ali wants to sell the house to Yusuf.

Situation A — Ahmad does not surrender his usufruct

The house is transferred subject to Ahmad’s right.

After sale:

Yusuf = owner of house

Ahmad = continues living there until 2030

When 2030 arrives:

Ahmad’s usufruct ends

↓

Yusuf now has house + usufruct

↓

Total ownership

⸻

Situation B — Ahmad agrees to give up his usufruct now

Ahmad legally surrenders his remaining right.

Then:

Ahmad’s usufruct ends

↓

Ali has complete ownership

↓

Ali sells house to Yusuf

↓

Yusuf receives property + immediate right to use it

⸻

6. Does Ahmad Need to Be Paid to Give Up His Usufruct?

That is a separate legal question.

If Ahmad possesses a genuine legal usufruct, Ali cannot simply take it away merely because he wants to sell the property.

Whether Ahmad may:

• surrender it voluntarily,
• receive compensation for surrendering it,
• transfer it,
• or whether a particular form of surrender is valid,

depends on how the usufruct was created and the applicable madhhab/rules.

So do not assume:

“The physical owner can just cancel the usufruct.”

He generally cannot disregard another person’s established legal right.

⸻

7. The Most Important Distinction

If you own only the asset while someone else owns the usufruct, there are really three possibilities:

1. You sell subject to the usufruct

→ buyer owns asset, usufruct holder keeps benefit.

2. Usufruct holder agrees to the sale but does not surrender his right

→ same basic result: buyer must respect the existing usufruct.

3. Usufruct holder validly agrees to end/surrender his usufruct

→ asset and usufruct reunite → total ownership can then be transferred to buyer.

So the key question is not merely:

“Did the usufruct owner agree to the sale?”

The better question is:

“Did the usufruct owner agree only to the transfer of the asset, or did he also legally surrender his usufruct?”

Those produce different legal results.

Islamic Law of Transaction: What Can You Do If You Own the Property, the Usufruct, or Both?

The easiest way to understand this is to separate the asset itself from the benefit produced by the asset.

1. If You Own the Property Only

This means you own the physical asset, but somebody else currently owns its usufruct.

Example: Ali owns a house, but Ahmad has the legal right to live in it for 10 years.

So:

Ali → owns the house

Ahmad → owns the 10-year usufruct

Ali is still the owner of the house, but his powers are limited because Ahmad’s usufruct must be respected.

Ali cannot normally use the house himself in a way that interferes with Ahmad’s right. He also cannot give the same usufruct to another person while Ahmad already owns it.

Example

Ahmad has the legal right to live in Ali’s house for 10 years.

Ali cannot say:

“It is my house, so I am moving in tomorrow.”

Why?

Because although Ali owns the property, Ahmad currently owns the benefit of living in it.

So:

Property ownership alone = ownership of the asset, but not necessarily the present right to use it.

2. What Can the Property Owner Do?

The property owner remains the owner of the physical asset.

However, whatever he does must respect the existing usufruct.

For example, he cannot:

destroy the property → because that would destroy the usufruct

take over the use himself → because the current benefit belongs to another

lease the same benefit to someone else → because he does not presently own that benefit

The important rule is:

Owning the property does not allow you to interfere with a usufruct that legally belongs to another person.

Example

Ali owns farmland.

Yusuf has the right to cultivate it for five years.

Ali cannot use the land himself for farming during those five years if doing so prevents Yusuf from exercising his usufruct.

3. If You Own the Usufruct Only

This means:

You do not own the physical asset, but you own the legal right to use and benefit from it.

Example

Ali owns an apartment.

Ahmad leases it for two years.

So:

Ali → owns apartment

Ahmad → owns the residential usufruct for two years

Ahmad may use the apartment according to the terms of his usufruct.

He may:

• live in it,
• use its rooms,
• enjoy the agreed facilities,
• exercise other uses allowed by the contract and Islamic Law.

But Ahmad does not own the physical apartment.

Therefore, he cannot sell the apartment itself.

4. What Can a Usufruct Owner Do?

A usufruct owner can generally enjoy the specific benefit that was legally given to him.

The exact powers depend on:

• how the usufruct was created,
• the agreement,
• its purpose,
• its duration,
• the applicable rules of Islamic Law.

Example

Suppose Ahmad rents a shop for three years.

His usufruct may allow him to:

occupy the shop

↓

operate the agreed lawful business

↓

benefit from the space

But it does not allow him to say:

“I own the building, so I will sell it.”

He cannot sell the physical property because he does not own it.

5. Can the Usufruct Holder Transfer the Usufruct?

Sometimes yes, but not automatically.

It depends on the contract and applicable Islamic legal rules.

For example, a tenant may sometimes be allowed to sublease or permit others to use the property, provided:

• the original agreement permits it,
• the new use does not harm the property,
• the use does not exceed the original usufruct.

But if the usufruct was personal, such as:

“Ahmad alone may live in this house for life,”

Ahmad may not necessarily be able to transfer that personal right to Yusuf.

So:

Owning usufruct gives rights over the benefit, but only within the limits of that usufruct.

6. If You Own Both the Property and the Usufruct

This is called:

Total Ownership — al-Milk al-Tāmm

You own:

the physical property

• ●

the benefit of the property

Therefore, you have the broadest ownership rights.

Example

Ali buys a house and no one else has a legal usufruct over it.

Ali owns:

House ✅

Right to live in it ✅

Right to rent its benefit ✅

Therefore:

Ali has total ownership.

7. What Can a Total Owner Do?

Subject to Islamic Law, the total owner may normally:

• use the property,
• live in it,
• benefit from it,
• sell it,
• gift it,
• lease it,
• lend it,
• invest in it,
• make it a waqf,
• include it in a will.

The reason he has broader powers is simple:

He owns both the thing and its benefit.

8. Example Using One House

Suppose Ali owns a house.

Situation A — Ali Owns Property Only

Ahmad has a five-year usufruct.

So:

Ali → house

Ahmad → right to live there

Ali cannot interfere with Ahmad’s five-year right.

Situation B — Ahmad Owns Usufruct Only

Ahmad may live in and benefit from the house according to his legal right.

But:

Ahmad cannot sell Ali’s house.

He owns:

the benefit

not:

the building itself

Situation C — Ali Owns Both

Ahmad’s five-year usufruct ends.

Now Ali has:

house + usufruct

Ali may:

• live there,
• lease it,
• sell it,
• gift it,
• otherwise lawfully deal with it.

This is:

Total Ownership

9. The Simplest Way to Remember It

Property only

“I own the thing, but someone else currently owns its benefit.”

Your power over the asset is therefore restricted by that person’s usufruct.

Usufruct only

“I do not own the thing, but I legally own the specified benefit.”

You may use and enjoy that benefit, but you cannot treat the physical asset as your own.

Property + Usufruct

“I own both the thing and its benefit.”

This gives you total ownership and the widest lawful powers over the property.

10. One Very Easy Example

Think of a car.

Ali owns the car, Ahmad rents it for one month.

During that month:

Ali → owns the physical car

Ahmad → owns/holds the one-month driving usufruct

Ahmad can:

drive the car ✅

but cannot:

sell the car ❌

Ali can say:

“That car belongs to me.” ✅

but cannot simply say:

“Give it back tomorrow; I want to drive it,” ❌

if Ahmad has a valid one-month contractual right.

After the month ends:

Car → Ali

• ●

Right to use car → Ali

=

Total Ownership

The key rule is:

Property ownership gives rights over the asset; usufruct ownership gives rights over its use and benefit; owning both gives total ownership.

Islamic Law of Transaction: Ownership of the Property Alone

1. What Does “Ownership of the Property Alone” Mean?

Sometimes one person owns the physical property, while another person owns its usufruct.

Remember:

Property = the actual thing

Examples:

• house,
• land,
• building.

Usufruct (manfa‘ah) = the legal right to use and benefit from that property

Examples:

• living in a house,
• farming land,
• using a building.

So it is possible for ownership to be divided like this:

Person A → owns the property itself

Person B → owns the usufruct

This is a form of partial ownership because one person does not possess both elements at the same time.

2. Example Through a Will

A common example is a will (wasiyyah).

Wasiyyah

A wasiyyah is an instruction made by a person concerning property that is intended to take effect after his death, subject to Islamic legal rules.

Example

Ali owns a house.

In his will, Ali states:

“After my death, Ahmad may live in my house for ten years.”

Ali later dies.

What happens?

The physical house passes to Ali’s heirs through inheritance.

However, Ahmad receives the right to live in the house for ten years.

So:

Physical house → Ali’s heirs

Ten-year usufruct → Ahmad

The ownership has therefore been divided.

3. Another Example — Lifetime Usufruct

Suppose Ali writes in his will:

“After my death, Yusuf may cultivate my farmland for the rest of his life.”

When Ali dies:

Ali’s heirs → own the farmland itself

while:

Yusuf → owns the right to cultivate and benefit from the farmland during his lifetime

Therefore, the heirs own the property, but they do not presently possess its full benefit.

4. What Happens When the Usufruct Period Ends?

When the period of usufruct finishes, the temporary separation ends.

Example

Ali’s heirs own the house.

Ahmad has the right to live there for ten years.

During those ten years:

Heirs → physical property

Ahmad → usufruct

After ten years:

Ahmad’s usufruct ends

↓

the usufruct returns to the heirs

↓

the heirs now have property + usufruct

↓

Total Ownership

So the heirs’ ownership becomes complete.

5. Why Is the Heirs’ Ownership Initially Partial?

The heirs own the actual property, but another person owns its current benefit.

Therefore:

Property ownership ✅

Present usufruct ❌

This means they have:

Partial Ownership

When the usufruct later returns to them:

Property ✅

• ●

Usufruct ✅

=

Total Ownership

6. Can the Property Owner Use the Property During Someone Else’s Usufruct?

Normally, the owner cannot use the property in a way that interferes with the usufruct that legally belongs to another person.

Example

Ali’s heirs own a house.

Ahmad has been legally given the right to live there for ten years.

The heirs cannot simply say:

“We own the house, so we will move in too.”

Why?

Because Ahmad currently owns the legally recognized benefit of living in the house.

The heirs own:

the physical property

but Ahmad owns:

the present usufruct

Therefore, the heirs must respect Ahmad’s legal right.

7. Can the Property Owner Deal With the Usufruct?

No, not as though the usufruct still belongs to him.

If the usufruct has already been legally given to another person, the physical property owner cannot transfer or use that same usufruct for himself during the specified period.

Example

The heirs own the house.

Ahmad has the right to live there for five years.

The heirs cannot normally rent the same residential benefit to Yusuf for those same five years.

Why?

Because:

the present usufruct already belongs to Ahmad

They cannot give another person a benefit that they do not presently control.

8. What About Dealing With the Property Itself?

The passage explains that while another person owns the usufruct, the owner of the property is also restricted in dealing with the physical property.

The main idea is:

Ownership of the physical property cannot be exercised in a way that destroys or defeats the existing usufruct right.

Example

The heirs own a house, while Ahmad has the right to live there for ten years.

The heirs cannot simply destroy the house or otherwise deal with it in a way that makes Ahmad’s usufruct impossible.

The existing usufruct must be respected.

So:

Physical ownership

does not allow the owner to ignore:

another person’s legally established usufruct

9. The Property Must Be Given to the Usufruct Holder

The owner of the physical property is required to make the property available to the person who owns its usufruct.

Example

Ahmad has a valid right under a will to live in a house for ten years.

The heirs inherit the house.

The heirs must allow Ahmad to take possession of the house so that he can actually enjoy the benefit given to him.

So:

Ahmad has usufruct

↓

heirs must deliver access to the house

↓

Ahmad can exercise his legal right

10. What If the Property Owner Refuses?

The passage explains that the owner may be compelled to deliver the property to the usufruct holder.

Coerced / Compelled

This means that legal authority may force a person to perform an obligation that he refuses to perform voluntarily.

Example

Ali’s will gives Ahmad the right to use farmland for five years.

Ali’s heirs inherit the land but refuse to allow Ahmad onto it.

If Ahmad’s usufruct is legally valid:

heirs refuse access

↓

Ahmad’s right is being prevented

↓

legal authority may compel the heirs

↓

land must be made available to Ahmad

This shows that usufruct is more than mere permission.

It is a legal right that can be enforced.

11. This Example Shows Why Usufruct Is Different From Mere Permission

Suppose Ali merely tells Ahmad:

“You may use my garden tomorrow.”

That may simply be permission.

But suppose Ahmad has a legally valid usufruct under a will.

Then:

Ahmad is not merely asking for permission

He already has:

a legally established right to the benefit

This is why the property owner may even be compelled to allow him access.

So:

Mere Permission

“You may use it because I allow you.”

Usufruct

“I have a legal right to use it, and the property owner must respect that right.”

12. Ownership of the Physical Property Is Normally Permanent

The passage explains that ownership of the physical property itself is generally perpetual, meaning it does not automatically expire after a fixed period.

Perpetual

Perpetual means continuing without a fixed ending date.

Example

The heirs inherit a house.

Their ownership is not:

“for ten years only.”

They continue to own the house even while Ahmad has a temporary right to live there.

So:

Heirs’ ownership of property → continues

while:

Ahmad’s usufruct → may be temporary

13. Why Does Ownership of the Property Eventually Become Total Ownership?

Because temporary usufruct normally comes to an end.

When it ends, the property owner again receives the benefit.

Example

Heirs own land.

Yusuf has the right to farm it for five years.

During the five years:

Heirs → property

Yusuf → usufruct

After five years:

Yusuf’s usufruct ends

↓

usufruct returns to heirs

↓

heirs have property + benefit

↓

Total Ownership

This is why the passage says that ownership of the property alone normally ends in total ownership.

14. Ownership of Usufruct Is Usually Temporary

Unlike physical property ownership, usufruct is commonly limited by:

• a fixed number of years,
• the lifetime of a person,
• another agreed or legally defined period.

Example 1 — Fixed Period

Ahmad has the right to live in a house for:

10 years

After ten years:

right ends

Example 2 — Lifetime

Yusuf has the right to farm land:

for the rest of his life

When Yusuf dies:

the lifetime usufruct ends

subject to the rules governing that arrangement.

So usufruct is usually:

temporary or limited

rather than permanent.

15. There Are Exceptions

The passage notes that there are some exceptions where a usufruct or benefit may continue for a much longer or permanent purpose.

One example mentioned is:

Waqf

A waqf is property permanently dedicated for a religious, charitable, family, or social purpose.

A waqf may create continuing benefits for its beneficiaries.

So although usufruct is normally temporary:

some legally established benefits may continue permanently or for an indefinite period.

16. The Hanafi Position on Inheriting Usufruct

The passage specifically mentions the Hanafi school.

According to the rule stated in the passage:

Hanafi jurists held that usufruct is generally not inherited in the same way as the physical property itself.

This helps explain why usufruct is usually treated as temporary in this discussion.

Simple Example

Suppose Ahmad personally has a right to use a house for his lifetime.

Ahmad dies.

According to the Hanafi approach referred to in the passage, that usufruct does not automatically pass to Ahmad’s heirs merely because they are his heirs.

Instead, the right may end according to the terms and nature of the usufruct.

17. Important: Do Not Confuse the Two Different Inheritances

There are two different things here.

First: Inheritance of the Physical Property

Ali dies.

His children inherit his house.

So:

House itself → heirs

Second: Existing Usufruct Belonging to Someone Else

Ali’s will gave Ahmad the right to live in that house for ten years.

So:

Usufruct → Ahmad for ten years

The heirs inherit the house subject to Ahmad’s existing usufruct.

Therefore:

Inheriting the property does not automatically cancel another person’s valid usufruct.

18. One Complete Example

Suppose Abdullah owns a farm.

His will states:

“After my death, Bilal may cultivate this farm for fifteen years.”

Abdullah dies.

Step 1 — Physical Property

Abdullah’s children inherit the farm.

So:

Farm → children

Step 2 — Usufruct

Bilal receives the right to cultivate the farm for fifteen years.

So:

Farming benefit → Bilal

Step 3 — During the Fifteen Years

The children remain owners of the physical land.

But they cannot simply:

• occupy the land in a way that prevents Bilal farming it,
• take Bilal’s farming benefit for themselves,
• interfere with his valid usufruct.

They must allow Bilal to use the land according to his legal right.

Step 4 — Children Refuse Access

If the children refuse to allow Bilal onto the land:

Bilal has a legal usufruct

↓

children are preventing his right

↓

legal authority may compel them to give access

Step 5 — Fifteen Years End

Bilal’s usufruct finishes.

Now the children possess:

the farm

• ●

the right to use the farm

Therefore:

Their ownership becomes total.

19. The Full Flow of Understanding

Start with:

Person owns property + usufruct

↓

Total Ownership

Then the owner creates a future usufruct through a will.

↓

Owner dies.

↓

Physical property passes to:

heirs

while usufruct passes to:

person named in the will

↓

Now:

Heirs → property only

Beneficiary → usufruct only

↓

Partial Ownership

↓

Usufruct period ends.

↓

Usufruct returns to heirs.

↓

Property + usufruct

↓

Total Ownership Again

20. Why Is the Physical Owner Restricted?

A student may ask:

“If the heirs own the house, why can’t they use it?”

Because ownership of the house and ownership of its current benefit are temporarily separated.

The heirs own:

the structure/property

But the beneficiary owns:

the current legally recognized use

Example

The heirs own the house.

Ahmad owns the right to live there until 2035.

The heirs cannot say:

“But our name is on the ownership, so Ahmad must leave.”

Their ownership is currently limited by Ahmad’s valid usufruct.

This is the meaning of:

Partial Ownership

21. Does the Usufruct Holder Become Owner of the House?

No.

This is equally important.

Ahmad may have the right to live in the house for ten years.

But Ahmad cannot normally say:

“Therefore the house itself belongs to me.”

It does not.

So:

Usufruct holder → owns/holds the benefit

Property owner → owns the physical asset

They own different legal interests.

22. Direct Questions and Answers

Question 1: What is ownership of the property alone?

Answer:

It means a person owns the physical property while another person owns its current usufruct.

Question 2: Can this happen through a will?

Answer: Yes.

A person may leave someone the right to:

• live in his house,
• cultivate his land,
• use another property,

for a fixed period or sometimes for that person’s lifetime.

Question 3: Who owns the property after the original owner dies?

Answer:

The physical property may pass to the deceased’s lawful heirs through inheritance.

Question 4: Who owns the usufruct?

Answer:

The person named in the valid arrangement holds the usufruct for the period stated.

Question 5: Can the heirs use the property during that period?

Answer:

Not in a way that interferes with the usufruct belonging to the other person.

Question 6: Must the heirs give the usufruct holder access?

Answer: Yes.

The property must be made available so that the usufruct holder can exercise his legal right.

Question 7: What if the heirs refuse?

Answer:

The passage states that they may be legally compelled to deliver the property or provide access.

Question 8: What happens when the usufruct ends?

Answer:

The usufruct returns to the physical property owner.

Then:

Property + usufruct

become united again.

This creates:

Total Ownership

Question 9: Is ownership of the physical property usually temporary?

Answer: No.

It is generally perpetual and continues unless lawfully transferred or otherwise ended.

Question 10: Is usufruct usually temporary?

Answer: Yes.

It is often:

• for a fixed time,
• for a person’s lifetime,
• or subject to another limitation.

There can, however, be special exceptions such as continuing waqf benefits.

Question 11: What is the Hanafi view mentioned in the passage?

Answer:

The passage states that the Hanafi school generally does not treat usufruct as something inherited in the same way as physical property.

Therefore, a personal usufruct may end rather than automatically pass to the usufruct holder’s heirs.

23. Most Important Rule to Remember

A person may own the physical property while someone else owns its usufruct. During that period, the physical owner must respect the usufruct holder’s legal right. When the usufruct ends, the physical owner’s partial ownership normally becomes total ownership.

24. Easy Memory Formula

During the usufruct:

Heirs → Property

Beneficiary → Usufruct

=

Partial Ownership

↓

When the usufruct ends:

Heirs → Property + Usufruct

=

Total Ownership

25. One-Sentence Exam Rule

Ownership of the property alone occurs when the physical asset belongs to one person while its usufruct belongs to another; once the temporary usufruct ends, both elements normally reunite in the property owner, creating total ownership.

Islamic Law of Transaction: Meaning of Usufruct, Benefit, and Mere Permission

Yes. The word “benefit” (manfa‘ah) is the part that often causes confusion.

1. What Exactly Is the “Benefit”?

The benefit is the useful function or enjoyment that comes from an asset without consuming the asset itself.

For example:

• the house is the asset; living in it is the benefit,
• the car is the asset; driving it is the benefit,
• the land is the asset; farming it or passing across it is the benefit,
• the shop is the asset; occupying it for business is the benefit.

So, benefit does not mean financial profit. It means the useful service or utility produced by the property.

In an ijarah (lease), that benefit must normally be lawful, identifiable, capable of being provided, and sufficiently clear—for example, what property is being used, how it may be used, and for what period. (tafhim.ikim.gov.my⁠)

A simple formula is:

Asset = the thing

Manfa‘ah = what the thing enables you to do

2. How Is a Legal Right to the Benefit Different from Mere Permission?

The strongest question to ask is:

Has the benefit itself been legally given to me for a defined purpose or period, or is the owner simply allowing me to use his property?

3. Example 1 — Legal Right to Usufruct

Ali owns a house.

Ali leases it to Ahmad for one year.

The agreement gives Ahmad the right to live in the house for that year.

So:

House → Ali owns it

One-year residential benefit → Ahmad has the legal right to it

Ahmad’s right does not depend simply on Ali continuing to be friendly with him. It comes from the lease agreement.

In Islamic jurisprudence, ijarah is treated as transferring the usufruct or benefit to the tenant for the agreed period. (muftiwp.gov.my⁠)

4. Example 2 — Mere Permission

Ali owns a house and tells his friend Yusuf:

“You can stay in my guest room tonight.”

Yusuf can use the room, but Ali has not necessarily transferred a separate ownership interest in the benefit of the house.

Yusuf is there because:

Ali gave him permission.

So:

Ali → owns house and its benefit

Yusuf → personally permitted to use part of it

This is closer to permission to use, rather than full milk al-manfa‘ah — ownership of usufruct.

5. The Best Practical Tests

You can distinguish them by looking at the legal arrangement:

• Source of the right: a lease, will, waqf, easement, or another legal arrangement can create a stronger right to the benefit; casual consent normally indicates permission.
• Can the owner simply withdraw it? A valid tenant normally has an enforceable right for the agreed lease period. Mere permission is normally more dependent on the permission given.
• Can the holder deal with the benefit? In the Maliki distinction, a person who owns the usufruct may have authority to use it himself or allow another person to use it, subject to the agreement; someone with mere personal permission generally cannot transfer that permission to another person. (oarep.usim.edu.my⁠)
• Is the benefit clearly defined? A formal usufruct will often specify the asset, duration, type of use, and limits. (tafhim.ikim.gov.my⁠)
• Was money paid? Payment is strong evidence in an ijarah, but payment is not the ultimate test. A benefit can arise through other legal arrangements as well.

There is also a school-of-law qualification: the terminology is not completely identical among the madhhabs. The Maliki treatment makes a particularly clear distinction between milk al-manfa‘ah (ownership of benefit) and haqq/intifā‘ (personal permission or limited right to use), while Hanafi treatments may characterize these concepts differently. (oarep.usim.edu.my⁠)

6. What Documentation Proves Usufruct?

Yes, documentation can be very important, but the document itself is evidence of the right; it is not what makes every use a usufruct.

For example, usufruct may be evidenced by:

• a lease/ijarah agreement stating that Ahmad may occupy an apartment for two years,
• a will (wasiyyah) stating that Fatimah may live in a house for her lifetime,
• a waqf instrument giving beneficiaries the use of property,
• a document establishing an easement, such as a permanent right of way over neighboring land.

Islamic jurisprudence recognizes usufruct interests arising through arrangements such as leases and wills, with some differences among schools regarding other forms. (islamansiklopedisi.org.tr⁠)

A lease document, for instance, should make the usufruct clear by identifying matters such as the asset, type or extent of use, period, and rent. (tafhim.ikim.gov.my⁠)

7. Can Mere Permission Also Be Written?

Yes.

For example:

“I give Yusuf permission to park his car here this week.”

This is written, but writing it down does not automatically convert it into ownership of usufruct.

You must read what rights the document actually gives.

8. Very Simple Example

Suppose Ali owns an apartment.

Document A says:

“Ahmad rents Apartment 10 from 1 January to 31 December for RM2,000 per month and has the right to occupy it as a residence.”

That strongly indicates:

legal right to usufruct.

Document B says:

“I permit Yusuf to stay in my apartment while I am overseas.”

That sounds much more like:

personal permission to use.

9. The Key Question

Do not ask only:

“Is he using the property?”

Ask:

“What legal right does he have over the benefit?”

That is the real difference.

10. Simplest Rule to Remember

Usufruct

“The benefit has legally been assigned to me.”

Mere Permission

“The benefit still belongs to the owner, but he allows me to enjoy it.”

Islamic Law of transaction - Usufruct means the legal right to use and benefit from property without owning the physical property itself.

For example, if Ali owns a house and rents it to Ahmad for one year, Ali owns the house, while Ahmad has the usufruct — the right to live in and benefit from the house during that year.

The difference from mere permission is that usufruct is a legal right over the benefit, while permission is only an allowance to use.

• Usufruct: “I have a legal right to this benefit.”
• Mere permission: “The owner is allowing me to use it.”

Example of usufruct

Ali leases his car to Yusuf for one week.

Yusuf has a legally established right to use the car for that week.

Car ownership → Ali

Usufruct → Yusuf

Example of mere permission

Ali tells Omar:

“You may use my car this afternoon.”

Omar can use it, but he does not necessarily own any legal interest in the car’s benefit. He is simply using it because Ali allowed him.

The easiest rule to remember is:

Usufruct = ownership or legal entitlement to the benefit.

Permission = lawful use without ownership of the benefit.

This is why a tenant usually has a stronger legal position than a guest. A tenant’s right comes from a contract such as ijarah (lease), while a guest normally uses the property only because the owner or lawful user permitted it.

Islamic Law of Transaction: Usufruct versus Mere Permission to Use

1. The Basic Difference

Usufruct (manfa’ah) and mere permission to use (haqq al-intifā’ / permission of use) may look similar because in both situations a person is using property belonging to someone else.

However, legally they are not necessarily the same.

Simple distinction

Ownership of usufruct = I have a legally established right over the benefit.

Mere permission = The owner allows me to use the property, but I do not own the benefit itself.

So:

Usufruct → stronger legal interest

Mere permission → personal authorization to use

2. What Is Ownership of Usufruct?

Ownership of usufruct (milk al-manfa’ah) means that a person has acquired a legally recognized right to the benefit of an asset, even though another person owns the physical asset.

The person therefore owns the benefit, not the physical object.

Example

Ali owns an apartment.

He leases it to Bilal for one year.

During that year:

Ali → owns the apartment

Bilal → owns the agreed usufruct

Bilal has a legally established right to occupy and benefit from the apartment during the lease.

Therefore:

Physical asset → Ali

Usufruct → Bilal

3. What Is Mere Permission to Use?

Mere permission means that the owner allows another person to use the property without necessarily transferring ownership of its usufruct.

Example

Ali tells his friend:

“You can stay in my guest room tonight.”

The friend is allowed to use the room.

But this does not necessarily mean that the friend now owns the usufruct of the room.

He simply has:

permission from Ali to use it.

So:

Ali remains owner of asset + benefit

↓

Friend receives personal permission

↓

Friend uses room

There has not necessarily been a separate proprietary transfer of the benefit.

4. The Most Important Test

Ask:

Does the person possess the benefit as a legal entitlement, or is he simply allowed by the owner to enjoy it?

If it is a legal entitlement over the benefit:

→ Ownership of usufruct

If it is merely personal authorization:

→ Permission to use

5. Example: Lease versus Permission

Suppose Ahmad owns a car.

Situation A — Lease

Ahmad rents the car to Yusuf for seven days for RM500.

Yusuf acquires the agreed right to use the car for seven days.

The flow is:

Ahmad owns car

↓

Lease contract

↓

Usufruct for seven days passes to Yusuf

↓

Yusuf has a legally enforceable right to use

This is:

Ownership of usufruct

Situation B — Permission

Ahmad tells Omar:

“You may use my car this afternoon.”

Omar may drive the car because Ahmad has permitted him.

But Omar does not necessarily own a separate usufruct interest in the car.

The flow is:

Ahmad owns car and its benefit

↓

Ahmad gives permission

↓

Omar may use car

This is:

Mere permission to use

6. Why Is the Distinction Important?

Because the rights of the usufruct holder may be stronger than those of someone who merely has permission.

The distinction affects questions such as:

• Can the right be transferred?
• Can another person be allowed to use the property?
• Can the owner suddenly prevent the use?
• Is the right enforceable under a contract?
• Does the user have an independent legal interest in the benefit?

These questions depend on the nature of the legal arrangement and the relevant juristic rules.

7. Transferability

One useful difference concerns whether the benefit can be transferred.

Ownership of usufruct

A person who owns usufruct may, where the contract and Islamic legal rules permit, have power to transfer or allow another person to enjoy that benefit.

Mere permission

A person who merely receives personal permission generally cannot treat that permission as though he owns it and transfer it to somebody else.

Citation [7]: The juristic discussion, particularly in the Maliki distinction, differentiates ownership of usufruct from a mere right of use. Ownership of usufruct can provide broader authority over the benefit, whereas mere permission is more personal and restricted.

Example

Ali tells Bilal:

“You personally may stay in my holiday house this weekend.”

Bilal cannot automatically say:

“I won’t go, so I have transferred my right to Khalid.”

Why?

Because Ali may have given the permission specifically to Bilal.

Bilal does not necessarily own the benefit in a way that allows him to transfer it.

8. Enforceability Is Another Important Difference

Suppose a valid lease gives Fatimah the right to occupy an apartment for one year.

The landlord generally cannot simply say after one month:

“I changed my mind. Leave today.”

Fatimah’s right arises from the lease contract.

It is not merely a favour that depends on the landlord’s continuing willingness.

So:

Valid contract

↓

Legally established usufruct

↓

Tenant has enforceable right

By contrast, where someone merely permits another person to use something, the strength and duration of that permission depend upon the nature of the arrangement and applicable legal rules.

9. Consideration Is Not the Main Test

Do not simply think:

Paid use = usufruct

and

Free use = mere permission

That is too simple.

A lease (ijarah) is the clearest example of usufruct being transferred for payment.

However, Islamic jurisprudence also recognizes arrangements involving benefits without payment.

Therefore, the real question is not simply:

“Was money paid?”

The better question is:

What legal right over the benefit was actually created?

10. Ownership of Usufruct Does Not Mean Ownership of the Asset

This remains important.

Suppose Bilal leases a house.

Bilal may have:

ownership of usufruct ✅

But Bilal does not have:

ownership of the physical house ❌

Therefore:

Usufruct ownership ≠ ownership of corpus

11. Mere Permission Is Even More Limited

If Bilal merely receives permission to stay in a house, he may have neither:

ownership of the house ❌

nor necessarily:

ownership of its usufruct ❌

Instead:

Bilal merely has authority to use it ✅

This gives us three different levels:

Level 1 — Complete Ownership

Asset + usufruct

Example: homeowner living in his own house.

↓

Level 2 — Ownership of Usufruct

Benefit without ownership of asset

Example: tenant under a lease.

↓

Level 3 — Mere Permission

Permission to enjoy the benefit without necessarily owning it

Example: owner allows a friend to stay temporarily.

12. Easy Three-Person Example

Suppose Aisha owns a condominium.

Aisha

She owns:

Condominium + its normal benefits

= Complete ownership

Aisha then leases it to Maryam for one year.

Maryam

She does not own the condominium.

But during the lease she holds:

the agreed usufruct

= Partial ownership relating to the benefit

Maryam invites Fatimah to visit for dinner.

Fatimah

Fatimah does not own:

• the condominium, or
• the leasehold usufruct.

She merely has:

permission to enter and use the property for the permitted purpose.

So:

Aisha → asset owner

Maryam → usufruct holder

Fatimah → permitted user

This is perhaps the easiest example for understanding the difference.

13. Can a Usufruct Holder Give Permission to Someone Else?

Sometimes yes, but not automatically in every case.

It depends on:

• the contract,
• the nature of the property,
• the purpose of the usufruct,
• restrictions imposed by the owner, and
• applicable Islamic legal rules.

Example

A tenant may sometimes allow family members to live with him.

That does not mean he may automatically:

• sublease the entire house,
• change its use,
• transfer the lease to another person.

Therefore:

Owning usufruct gives a stronger right than mere permission, but it is still limited by the source and terms of that usufruct.

14. Does Mere Permission Create Ownership?

Generally, no.

Permission explains why the person’s use is lawful, but lawful use does not automatically mean ownership.

This is an important principle.

Example

Your friend gives you permission to use his laptop for one hour.

Your use is lawful.

But this does not mean:

you own the laptop ❌

or automatically:

you own an independent transferable usufruct in the laptop ❌

You simply have:

lawful permission to use it ✅

15. Simple Comparison Table

Point

Ownership of Usufruct

Mere Permission

Physical asset owned?

No

No

Benefit legally vested in user?

Yes

Not necessarily

Independent legal interest?

Generally yes

Usually more personal

Common example

Lease

Guest permission

Transferable?

May be, subject to contract and law

Generally not automatically

Owner can simply ignore it?

Contractual right normally must be respected

Depends on nature of permission

User owns physical asset?

No

No

16. The Word “Use” Can Cause Confusion

Both persons may physically do exactly the same thing.

For example:

Tenant sleeps in house

and

Guest sleeps in house

Physically, both are using the house.

But legally:

Tenant

uses because he holds a contractual usufruct

Guest

uses because the owner or authorized person permits him

Therefore:

The physical act of using property does not tell us whether usufruct is owned. We must identify the legal basis of that use.

17. The Correct Flow of Analysis

Whenever somebody is using another person’s property, ask these questions:

Step 1

Who owns the physical asset?

↓

Step 2

Why is the other person allowed to use it?

↓

Step 3

Is there a legal transaction transferring the benefit?

Yes

↓

Possible ownership of usufruct

OR

Is the owner merely allowing personal use?

Yes

↓

Possible mere permission

↓

Step 4

Check:

• duration,
• transferability,
• contractual restrictions,
• purpose, and
• applicable juristic rules.

18. Exam Example

Question

Ali owns a house. He leases it to Ahmad for two years. Ahmad allows his brother Yusuf to stay with him for one week. Explain their legal interests.

Answer

Ali owns the physical house.

Ahmad possesses the usufruct arising from the lease for two years.

Yusuf does not become owner of the house or necessarily owner of a separate usufruct simply because Ahmad allows him to stay there. Yusuf is ordinarily using the property through permission, subject to Ahmad having authority under the lease to permit that use.

Therefore:

Ali → ownership of corpus

Ahmad → ownership of usufruct

Yusuf → permitted use

19. One-Sentence Rule to Memorize

Ownership of usufruct means that the benefit itself has become the person’s legally recognized interest, whereas mere permission only allows the person to enjoy the benefit without necessarily making that benefit his property.

20. Simplest Memory Trick

Usufruct:

“The benefit is mine for the specified purpose or period.”

Mere permission:

“The benefit is not mine; I am simply allowed to use it.”

That is the core distinction.

Islamic Law of Transaction: Types of Ownership, Ownership of Usufruct, and the Elements of Ownership

1. Start With the Proper Definition of Ownership

Before studying the types of ownership, we need to understand what ownership (al-milkiyyah / al-milk) actually means.

A useful juristic definition is:

Ownership is an exclusive legal relationship between a person and an owned subject which gives that person the right to use, benefit from, or deal with it in a lawful manner, while excluding others from doing so without legal authority.

In simpler words:

Ownership = a legally recognized exclusive right over something that allows the owner to exercise the rights attached to it, within the limits of Shari’ah.

Citation [1]: The source defines ownership as a legal relationship that specifically attaches the owned subject to the owner and allows the owner to deal with it unless a legal impediment exists. It also describes ownership as an exclusive association allowing lawful disposal.

2. Does Ownership Always Mean Owning the Physical Thing?

No.

This is one of the most important points to understand.

In Islamic jurisprudence, the subject of ownership can relate to:

1. the physical asset itself,
2. the usufruct or benefit of the asset, or
3. in some cases, a legally recognized right connected with property.

Therefore:

Ownership is wider than simply owning a physical object.

This is why Al-Majallah Article 125 recognizes an owned subject as including either a specified property or its usufruct.

Citation [2]: Al-Majallah Article 125 recognizes ownership not only of a specific asset but also of the usufruct connected with an asset. The Hanafi discussion consequently distinguishes between something being owned and something qualifying technically as property (māl).

3. The Two Important Elements of Property Ownership

For this topic, think of an asset as having two important components:

Element 1 — The Corpus / Physical Asset

This is called:

’ayn, raqaba, or the physical substance/title of the property.

Examples:

• the actual house,
• the actual car,
• the actual land,
• the actual building.

Element 2 — The Usufruct

This is called:

manfa’ah.

It means:

the benefit or use that can be obtained from the asset.

Examples:

• living in a house,
• driving a car,
• using a machine,
• cultivating land,
• occupying an office.

So we can visualize property as:

PROPERTY

→ Physical asset (’ayn / raqaba)

• ●

→ Usufruct (manfa’ah)

4. Must Both Elements Exist for Something to Be Called Ownership?

The short answer:

No — not for ownership in the broad sense.

But:

Yes — both are required for complete ownership.

This distinction is crucial.

Islamic jurisprudence recognizes two fundamental forms:

1. Complete ownership

Physical asset + usufruct

2. Partial or incomplete ownership

Physical asset without usufruct

OR

Usufruct without physical asset

The source expressly classifies ownership in this way.

So:

Each component can stand separately as a form of ownership, but possessing both produces complete ownership.

5. Types of Ownership

There are two main types:

A. Complete Ownership — al-Milk al-Tāmm

B. Partial / Incomplete Ownership — al-Milk al-Nāqiṣ

Citation [3]: Classical juristic classification treats ownership of both the property and its usufruct as complete ownership, while ownership of one without the other is partial ownership.

6. Complete Ownership — al-Milk al-Tāmm

Complete ownership exists when the same person owns:

the physical property + its usufruct.

Therefore:

Corpus + Usufruct = Complete Ownership

Example

Ahmad buys a house and lives in it.

Ahmad owns:

• the house itself, and
• the right to use and benefit from it.

So:

House → Ahmad

Usufruct → Ahmad

Therefore:

Ahmad has complete ownership.

7. What Can a Complete Owner Normally Do?

Subject to Shari’ah, the complete owner normally has broad rights to:

• use the property,
• live in it,
• rent it,
• sell it,
• gift it,
• lend it,
• transfer it, and
• benefit from it.

The source describes complete ownership as ownership of both the asset and usufruct, giving the owner the legal rights associated with both.

Easy Formula

Complete ownership

=

Ownership of asset

• ●

Ownership of benefit

8. Example of Complete Ownership

Zayd purchases a car for RM80,000.

He owns the car and uses it himself.

Therefore:

Zayd owns car

↓

Zayd owns right to use car

↓

Zayd may lawfully sell, rent, gift, or use car

↓

Complete ownership

9. Partial or Incomplete Ownership — al-Milk al-Nāqiṣ

Partial ownership occurs when ownership of the physical asset and ownership of its usufruct are separated.

So:

One person does not presently possess both elements together.

It can mainly take the following forms:

Type 1

Ownership of the physical asset without its usufruct

Type 2

Ownership of the usufruct without ownership of the physical asset

Certain juristic classifications also discuss rights such as easements within partial ownership.

10. Type 1 — Ownership of the Asset Without Its Usufruct

A person may own the physical property while another person has the present legal right to its benefit.

Example

Aisha owns a house.

She leases it to Fatimah for one year.

During the lease:

Aisha → owns the house

Fatimah → owns the contractual usufruct for one year

Therefore, the two components are temporarily separated.

Flow

House

↙️                              ↘️

Physical ownership       Usufruct

Aisha                        Fatimah

The ownership of the house has not transferred to Fatimah.

Only the right to benefit from it has been transferred for the agreed period.

11. Type 2 — Ownership of Usufruct Without Owning the Asset

This answers your important question:

Can usufruct itself be a form of ownership?

Yes.

In Islamic jurisprudence, ownership of usufruct (milk al-manfa’ah) is recognized as a form of partial or incomplete ownership.

The person does not own the physical asset, but legally owns the specified benefit for the relevant period or within the relevant limits.

Citation [4]: The source expressly states that partial ownership may mean ownership of the property without its usufruct or vice versa. It also explains that a lease gives the lessee ownership of the leased property’s usufruct in exchange for rent.

12. Clear Example: Usufruct as Ownership

Hamzah owns an apartment.

He leases it to Yusuf for two years.

Who owns what?

Hamzah

→ owns the physical apartment.

Yusuf

→ owns the contractual usufruct for two years.

Therefore:

Hamzah ≠ owner of Yusuf’s present lease benefit

and

Yusuf ≠ owner of the physical apartment

The ownership is divided:

Physical asset → Hamzah

Usufruct → Yusuf

This is why Yusuf’s interest can properly be described as:

ownership of usufruct — milk al-manfa’ah

which is a type of partial ownership.

13. So Is Usufruct Really “Ownership”?

Yes — but be precise about what is owned.

It does not mean:

usufruct holder owns the house ❌

It means:

usufruct holder owns the legally recognized benefit ✅

So if Bilal rents Ahmad’s house:

Ahmad owns the asset.

Bilal owns the usufruct created by the lease.

Bilal therefore has ownership, but his ownership concerns the benefit, not the physical house.

14. Important: “Ownership” Is Not the Same as “Complete Ownership”

This is where confusion often occurs.

Someone may say:

“Bilal is not the owner because he only rents the house.”

That statement is correct if we mean ownership of the house itself.

But technically in fiqh, Bilal may possess:

ownership of the usufruct.

Therefore:

Bilal does NOT have:

complete ownership of the house.

Bilal DOES have:

partial ownership relating to its usufruct.

This distinction makes both statements understandable.

15. Must Someone Have Every Ownership Right to Be an “Owner”?

No.

The better way to understand Islamic ownership is:

Ownership can attach to different legally recognized subjects or components.

A person may own:

• the asset and its benefit,
• the asset alone,
• the usufruct alone, or
• certain recognized rights associated with property.

Therefore, a person does not need every possible ownership incident before the word milk can apply.

But the classification changes depending on what he owns.

Formula

Asset + usufruct

= complete ownership

Whereas:

Asset only

= partial ownership

and:

Usufruct only

= partial ownership

16. Think of Ownership as an Umbrella

Imagine ownership (milk) as the large category.

OWNERSHIP

↓

Complete Ownership

Asset + usufruct

OR

Partial Ownership

Asset only

OR

Usufruct only

Therefore:

Complete ownership is one type of ownership; it is not the only ownership recognized by Islamic law.

17. Why Does the Definition of Ownership Still Work for Usufruct?

Recall our definition:

Ownership is an exclusive legal relationship between a person and an owned subject which permits lawful dealing with that subject and excludes unauthorized interference.

Notice that the definition says:

“owned subject”

rather than necessarily:

“physical object.”

So the owned subject may be:

• a house,
• a car,
• land,

OR

• the legally recognized usufruct of that house, car, or land.

This is why ownership is a broader concept than simply ownership of physical property.

Citation [5]: The source specifically notes that Hanafi jurists could recognize usufruct and legal rights as things capable of being owned, even though classical Hanafi terminology did not necessarily classify them as physical/property wealth (māl).

18. Very Important Distinction: “Owned” and “Property” Are Not Always the Same Question

This is especially important when studying the Hanafi school.

There are actually two separate questions:

Question 1:

Can something be owned?

Question 2:

Is that thing technically classified as māl (property/wealth)?

Those questions do not always receive the same answer.

In the classical Hanafi treatment:

Usufruct can be owned

but

usufruct was not generally classified as māl in the same way as a physical asset.

Other jurists generally gave usufruct a stronger status as property.

Citation [6]: The cited discussion explains this Hanafi distinction, while other juristic approaches treat usufruct itself as valuable property, producing differences in matters such as inheritance.

Easy Memory Rule

Owned ≠ necessarily physical property

Therefore:

usufruct may be owned even though it is not a physical thing.

19. Does Usufruct Always Mean the Same Thing as Permission to Use?

Not necessarily.

This is another important distinction.

There can be a difference between:

A. Ownership of usufruct — milk al-manfa’ah

and

B. Mere right or permission to use — intifā’

A person who owns the usufruct may, depending on the contract and juristic rules, have a stronger right over the benefit.

A person who is merely permitted to use something may only personally use it and may not have the authority to transfer that right to another person.

Citation [7]: The source records a Maliki distinction between ownership of usufruct and a mere right to use. Ownership of usufruct may permit the holder to personally benefit or transfer the benefit, whereas a mere permission to use is more personal and restricted. The source also notes that Hanafi treatment may characterize the right of use differently.

20. Example: Usufruct Ownership vs Mere Permission

Situation A — Lease

Ahmad leases his apartment to Bilal for one year.

Bilal receives a legally enforceable contractual right to the apartment’s usufruct.

So:

Bilal → ownership of usufruct

Situation B — Personal Permission

Ahmad tells his friend:

“You may stay in my guest room for three nights.”

Depending on the legal characterization, the friend may simply have:

permission to use

rather than a transferable ownership interest in the usufruct.

He cannot necessarily say:

“I will give my three-night right to someone else.”

So:

Ownership of usufruct ≠ automatically the same as mere permission to use.

21. Sale and Lease Show the Difference Perfectly

Consider the same house.

Sale

Ali sells the house to Omar.

The physical asset and normally all associated benefits pass to Omar.

Ali

↓

SALE

↓

Omar receives asset + usufruct

↓

Complete ownership

Lease

Ali leases the house to Omar for one year.

Ali keeps physical ownership

↓

usufruct transferred temporarily

↓

Omar receives usufruct

Therefore:

Ali → asset

Omar → usufruct

This creates separated or partial ownership interests.

22. One Detailed Example

Suppose Maryam owns a commercial building.

She leases it to Abdullah for five years.

Step 1 — Before the lease

Maryam has:

building + usufruct

Therefore:

complete ownership

Step 2 — Lease begins

The usufruct is transferred contractually to Abdullah for five years.

Now:

Maryam → physical asset

Abdullah → usufruct

Step 3 — Abdullah uses the building

He operates his business there according to the agreement.

He does not own the building.

But he has a legally recognized right over its benefit.

Step 4 — Five years end

Abdullah’s usufruct ends.

The components reunite:

Maryam → physical asset + usufruct

Therefore:

Maryam again exercises complete ownership without the lease separating the present benefit.

23. Visual Flow of the Entire Concept

At the Beginning

PROPERTY

↓

contains two important aspects

↙️                       ↘️

Asset (’ayn)        Usufruct (manfa’ah)

If One Person Owns Both

Asset + usufruct

↓

COMPLETE OWNERSHIP

al-Milk al-Tāmm

If They Are Separated

Person A → asset

Person B → usufruct

↓

PARTIAL OWNERSHIP

al-Milk al-Nāqiṣ

24. Direct Answers to the Main Questions

Question 1: What is the proper definition of ownership?

Answer:

Ownership is a legally recognized exclusive relationship between a person and an owned subject that gives that person authority over it and excludes others from dealing with it without authorization, subject to Shari’ah.

Question 2: Must ownership always involve a physical asset?

Answer: No.

Islamic jurisprudence recognizes ownership of the physical asset and also ownership relating to its usufruct.

Question 3: Is usufruct a form of ownership?

Answer: Yes.

Ownership of usufruct (milk al-manfa’ah) is recognized as a form of partial/incomplete ownership.

Question 4: Does the usufruct owner own the physical property?

Answer: No.

He owns the benefit, not necessarily the physical asset.

Example

Tenant:

owns/holds contractual usufruct ✅

owns landlord’s house ❌

Question 5: Must the asset and usufruct both belong to someone before ownership exists?

Answer: No.

Each can form the subject of a separate ownership interest.

But:

Both must be united in the same owner for complete ownership.

Question 6: Can ownership therefore be “split”?

Answer: Yes.

In Islamic jurisprudence, the ownership interests connected with an asset can be separated.

For example:

Landlord → ownership of physical house

Tenant → ownership of temporary usufruct

This does not create two owners of the same thing in exactly the same sense.

They own different legal components.

25. The Most Important Concept to Memorize

Do not think:

Ownership = only owning the physical thing.

Instead think:

OWNERSHIP IS THE GENERAL CATEGORY

Under it we may have:

1. Ownership of the asset

2. Ownership of usufruct

or

3. Both together

Therefore:

Asset + Usufruct

= Complete ownership

Asset without usufruct

= Partial ownership

Usufruct without asset

= Partial ownership

26. Simple Examination Example

Question

Ali owns a house and rents it to Ahmad for two years. Explain the ownership position.

Answer

Before the lease, Ali possesses complete ownership because he owns both the house and its usufruct.

When the valid lease begins:

• Ali remains owner of the physical house, while
• Ahmad receives ownership of the agreed usufruct for two years.

Therefore, ownership of the asset and ownership of the benefit are temporarily separated.

Ahmad does not become owner of the house itself.

When the lease ends, Ahmad’s usufruct terminates and Ali again personally possesses both the asset and its benefit.

27. Final Memory Diagram

OWNERSHIP — al-Milk

↓

What exactly is owned?

↙️                          ↓                         ↘️

Asset               Usufruct              Both

↓                            ↓                         ↓

Partial                  Partial                  Complete

Ownership                Ownership                Ownership

28. One-Sentence Rule

In Islamic Law of Transaction, ownership does not require every ownership element to exist in one person; ownership of the physical asset or ownership of its usufruct can each constitute partial ownership, while ownership of both together constitutes complete ownership.

This is the key principle connecting ownership, usufruct, leasing, and the distinction between complete and incomplete ownership.

Islamic Law of Transaction: Ownership and Usufruct

1. What Is the Difference Between Ownership and Usufruct?

In Islamic Law of Transaction, it is important to distinguish between:

• ownership of the property itself, and
• ownership of the benefit of the property.

The Arabic term for usufruct is commonly referred to as manfa‘ah, meaning the benefit, use, or enjoyment obtained from property.

Simple Idea

Ownership = owning the thing itself

Usufruct = having the right to use or benefit from the thing

2. What Is Ownership?

Ownership means that a person has a legally recognized right over property.

The owner normally has the right to:

• use the property,
• benefit from it,
• sell it,
• rent it,
• give it as a gift, or
• transfer it in another lawful way.

Example

Ahmad owns a house.

Because Ahmad owns the house itself, he may:

• live in it,
• rent it,
• sell it, or
• give it away.

So:

Ahmad → owns the house itself → has ownership

3. What Is Usufruct?

Usufruct means the legal right to use and benefit from property without necessarily owning the property itself.

A person may therefore benefit from something that belongs to another person.

Example

Ahmad owns a house and rents it to Bilal for one year.

• Ahmad owns the house.
• Bilal has the right to live in and use the house for one year.

Therefore:

Ahmad = owner of the property

Bilal = holder of the usufruct

4. The Main Difference

The easiest way to understand the difference is:

Ownership

Usufruct

Right over the property itself

Right over the benefit of the property

Usually more complete

Usually more limited

Owner may sell the property

User normally cannot sell the property

May continue permanently

Often exists for a limited period

Includes control over the asset

Includes only authorized use or benefit

Simple Example

Fatimah owns a car.

She rents it to Aisha for three days.

Fatimah owns the car.

Aisha owns the right to use the car for three days.

So:

Property itself → Fatimah

Benefit of property → Aisha temporarily

5. Ownership Can Be Divided Into Two Main Elements

To understand the relationship more clearly, property may involve:

A. Ownership of the physical asset

This means ownership of the actual property.

Examples:

• house,
• land,
• car,
• laptop.

B. Ownership of its usufruct

This means ownership of the right to use or benefit from the property.

Examples:

• living in a rented house,
• driving a rented car,
• using rented equipment,
• farming leased land.

So:

Property = physical asset + benefit

These two may belong to the same person or to different people.

6. When Ownership and Usufruct Belong to the Same Person

Sometimes the owner possesses both:

• the property itself, and
• its benefit.

Example

Yusuf owns his own house and lives in it.

Yusuf has:

Ownership of the house + right to use the house

So there is no separation.

The flow is:

Yusuf owns house → Yusuf controls asset → Yusuf enjoys benefit

7. When Ownership and Usufruct Belong to Different People

In some transactions, the property belongs to one person while its benefit belongs temporarily to another.

This commonly happens in a lease (ijarah).

Example

Zayd owns an apartment.

He rents it to Omar for two years.

During the lease:

Zayd → owns the apartment

Omar → has the right to live in it

The ownership of the physical apartment does not transfer to Omar.

Only the usufruct transfers for the agreed period.

8. Usufruct Does Not Give Full Ownership

Having the right to use something does not automatically make a person the owner of the property.

Example

Maryam rents a shop.

She may use the shop for her business according to the rental agreement.

But she cannot normally:

• sell the shop,
• give the shop away,
• claim permanent ownership of it.

Why?

Because she owns only the right to use it, not the shop itself.

So:

Usufruct ≠ full ownership

9. Usufruct Is Usually Limited

Usufruct may be limited by:

• time,
• purpose,
• agreement, or
• Islamic legal rules.

Example: Time Limit

Ali rents a car for five days.

He may use the car only during those five days.

So:

5-day agreement → 5-day usufruct → right ends after five days

Example: Purpose Limit

A person rents a building specifically for use as an office.

He should use it according to the agreed purpose and lawful conditions.

10. The Owner Still Has Rights

Even when another person has usufruct, the original owner normally remains the owner of the property itself.

Example

Hassan rents his house to Ibrahim for one year.

Ibrahim may live in the house.

However, Hassan still owns the house.

Thus:

Hassan keeps ownership

↓

Ibrahim receives temporary benefit

↓

Lease ends

↓

Full use returns to Hassan

11. The User Must Respect the Property

A person who has usufruct does not have unlimited freedom.

He must use the property in the lawful and agreed manner.

Example

Salim rents a car.

He has permission to drive it.

But this does not give him permission to intentionally damage it or use it in a prohibited way.

Therefore:

Right to benefit → responsibility to protect property

12. Example Through Ijarah

The clearest example of usufruct is ijarah, or leasing.

Example

Khalid rents a house from Abdullah for RM1,500 per month.

The transaction can be understood like this:

Abdullah owns the house

↓

Khalid pays rent

↓

Khalid receives the right to use the house

↓

Ownership remains with Abdullah

↓

Usufruct belongs to Khalid for the rental period

This shows that in ijarah, what is transferred is mainly the benefit, not the physical property itself.

13. Sale Compared With Lease

A sale and a lease are different because they transfer different things.

Sale

In a sale, ownership of the property itself is transferred.

Example

Ahmad sells his car to Bilal.

After a valid sale:

Ahmad → no longer owner

Bilal → new owner

Lease

In a lease, ownership of the asset normally stays with the original owner.

Only the usufruct transfers.

Example

Ahmad rents his car to Bilal for one week.

Ahmad → remains owner

Bilal → receives right to use car for one week

14. Easy Comparison: Sale vs Lease

Sale

Lease / Ijarah

Transfers ownership of asset

Transfers usufruct

Buyer becomes owner

Tenant/user does not become owner

Usually permanent transfer

Usually temporary

Asset changes ownership

Asset remains with original owner

Easy Memory Trick

Sale = thing transfers

Lease = benefit transfers

15. Can Usufruct Have Economic Value?

Yes.

The benefit of property may itself have value.

This is why a person may lawfully pay money to use someone else’s property.

Example

A house may be worth RM500,000.

A tenant does not buy the house.

Instead, the tenant pays RM2,000 per month for the benefit of living in it.

So the physical property has value, and its usufruct also has value.

16. One Complete Example

Suppose Amina owns a shop.

She rents the shop to Sarah for three years.

Step 1 — Amina owns the shop

Amina has ownership of the physical property.

Step 2 — Lease agreement is made

Sarah agrees to pay rent.

Step 3 — Usufruct transfers

Sarah gains the legal right to use the shop for the agreed business.

Step 4 — Ownership remains with Amina

Sarah does not become the owner of the shop.

Step 5 — Sarah must respect the agreement

She must use the shop lawfully and according to the lease.

Step 6 — Lease ends

At the end of three years, Sarah’s right of usufruct ends unless the agreement is renewed.

The flow is:

Amina owns shop

↓

Lease agreement

↓

Sarah receives usufruct

↓

Sarah uses shop

↓

Amina remains owner

↓

Lease ends

↓

Usufruct returns fully to Amina

17. Why Is This Distinction Important?

Understanding ownership and usufruct helps explain many Islamic financial and commercial transactions.

It is especially important in:

• ijarah,
• property rental,
• vehicle rental,
• equipment leasing,
• agricultural leasing, and
• other transactions involving temporary use.

Without distinguishing the asset from its benefit, it becomes difficult to understand how these contracts work.

18. Full Flow of Understanding

The concept can be remembered like this:

Property exists

↓

Someone owns the property

↓

Property produces a benefit

↓

Owner may use the benefit himself

OR

↓

Owner may lawfully give the benefit to another person

↓

Another person receives usufruct

↓

Original owner keeps ownership of the asset

↓

When the usufruct period ends, the right to use returns to the owner

19. Key Points to Remember

1. Ownership means owning the property itself.
2. Usufruct means having the right to use or benefit from property.
3. A person may have usufruct without owning the physical asset.
4. The physical property and its benefit may belong to different people.
5. Ijarah is a common example where usufruct is transferred.
6. In a lease, the owner normally remains the owner of the asset.
7. The tenant receives only the agreed right of use.
8. Usufruct may be limited by time, purpose, contract, and Islamic Law.
9. A person enjoying usufruct must respect and protect the property.
10. The easiest distinction is:

Ownership = owning the thing.

Usufruct = owning or holding the right to benefit from the thing.

20. Super Simple Exam Example

Question:

Ali owns a house and rents it to Ahmad for one year. Who owns the house and who owns the usufruct?

Answer:

Ali owns the house itself.

Ahmad has the usufruct, meaning the right to live in and benefit from the house for one year.

So:

Ali = ownership

Ahmad = usufruct

After the rental period ends, Ahmad’s right to use the house ends, while Ali continues to own the property.

Islamic Law of Transaction: Definition of Ownership

1. What Does Ownership Mean?

In Islamic Law, ownership (al-milkiyyah) is a legal relationship between a person and something that he owns.

When Islamic Law recognizes a person as the owner of something:

the item belongs specifically to that person → the owner has the right to use or deal with it → other people cannot interfere without permission. [1]

Simple Definition

Ownership means that something belongs exclusively to a person, and that person may use or deal with it in any lawful way.

However, the owner’s freedom is subject to Islamic legal rules.

Example

Ahmad legally buys a car.

Because Ahmad legally owns the car:

• he can drive it,
• sell it,
• rent it,
• give it as a gift, or
• allow someone else to use it.

But he cannot use or transfer it in a way that Islamic Law prohibits.

So the basic flow is:

Legal acquisition → Ownership → Exclusive right → Lawful use

2. Ownership Can Include More Than Physical Property

Al-Majallah, item 125, explains that an owned item may include:

something physically owned by a person or the usufruct of property.

Usufruct simply means the right to use and benefit from something, even if the physical object itself belongs to someone else.

Example

Aisha rents a house from Fatimah.

• Fatimah owns the house itself.
• Aisha has the legal right to use and benefit from the house during the rental period.

Therefore, Islamic Law can recognize rights connected to the use of property, not only ownership of the physical object itself.

3. Ownership Is Broader Than Physical Property

Hanafi jurists explained that usufruct and certain legal rights can be owned even though they are not physical property.

This means that the concept of ownership is wider than simply owning an object.

Easy Way to Understand It

There are two things to distinguish:

Physical property

Example: a house.

Right connected to property

Example: the right to live in or use that house.

Both can have legal value, even though the second is not a physical object.

4. A Simple Juristic Definition of Ownership

Muslim jurists gave several similar definitions of ownership. [2]

One useful definition is:

Ownership is an exclusive relationship between the owner and the owned item that allows the owner to deal with it in any way that Islamic Law does not prohibit.

In Simple Words

Ownership gives a person special and exclusive control over something.

So:

Owner + Owned item → Exclusive relationship → Right to use or dispose of it lawfully

5. How Does Ownership Begin?

A person must acquire the property through a legally recognized method.

Once the property is lawfully acquired, it becomes exclusively associated with that person.

Example

Bilal buys a laptop through a valid sale.

The flow is:

Valid sale → Bilal becomes owner → Laptop belongs exclusively to Bilal → Bilal may lawfully use or sell it

Other people cannot simply take or use the laptop without Bilal’s permission.

6. Ownership Does Not Mean Unlimited Freedom

Even though the owner has strong rights over the property, Islamic Law may prevent certain transactions or actions.

Therefore:

Ownership gives rights, but those rights remain subject to Islamic Law. [1]

Example

Suppose Yusuf owns a shop.

He generally has the right to:

• sell it,
• rent it,
• use it,
• renovate it, or
• give it away.

However, ownership does not automatically make every possible transaction lawful.

A transaction must still comply with Islamic legal rules.

7. Ownership and Legal Capacity Are Different

A very important point is that:

A person may legally own property even when he is temporarily unable to personally manage it.

Examples of legal impediments mentioned include:

• childhood,
• insanity,
• severe mental incompetence, or
• other conditions affecting legal capacity.

Example: Child Owner

Suppose a 7-year-old child inherits a house from his father.

The child is still the owner of the house.

However, because he is too young to manage major financial transactions himself, a guardian may manage the property for him.

So:

Child inherits house → Child becomes owner → Child cannot personally manage it yet → Guardian manages it temporarily

The guardian does not become the owner.

8. Other People Cannot Deal With the Property Without Authority

Because ownership is exclusive, another person cannot use, sell, or manage the owner’s property unless there is a valid legal reason.

Legal authorization may include:

• guardianship,
• agency, or
• another legally recognized authority.

Example

Omar owns a business but travels overseas.

He appoints Khalid as his agent to sell some goods.

The relationship is:

Omar = Owner

↓ appoints

Khalid = Agent

↓ acts on behalf of

Omar

Khalid’s power comes from Omar’s authorization.

Khalid does not receive independent ownership of the goods.

9. Guardian or Agent Is Not the True Owner

A guardian or agent only receives the authority to act for the owner.

Their rights are therefore derived rights, meaning they come from someone else’s ownership or from legal authority.

They are not original owners.

Example

A child owns RM100,000 through inheritance.

A guardian manages the money.

This does not mean:

Guardian = owner ❌

Instead:

Child = owner ✅

Guardian = manager on behalf of child ✅

When the legal restriction ends, the owner’s full ability to personally manage the property returns.

10. Ownership Can Remain Even When the Owner Cannot Act

A child or mentally incapacitated person does not lose ownership simply because he cannot personally enter into transactions.

The restriction normally affects the person’s ability to deal with the property, rather than the existence of ownership itself.

Example

Suppose Zayd becomes mentally incapacitated while owning a house.

The house does not automatically stop belonging to him.

Instead:

Zayd remains owner

↓

Legal impediment prevents personal management

↓

Guardian manages property

↓

If impediment ends, Zayd’s personal authority returns

This distinction is very important:

Ownership of property and the capacity to personally manage property are not the same thing.

11. Where Do Ownership Rights Come From in Islamic Law?

According to the cited discussion, ownership and other legal rights must receive recognition from Islamic Law (Shari’ah). [1]

The author explains that legal rights are understood as rights recognized through the sources of Islamic Law, rather than rights existing completely independently of Divine Law. [1]

Therefore, ownership is not viewed simply as:

“This is mine, so I can do anything I want.”

Instead, the idea is:

Allah recognizes legal rights → Islamic Law protects ownership → Owner receives rights → Rights must be exercised within Islamic limits → Interests of society are also protected. [1]

Example

A person may own wealth privately.

Islam protects that wealth from being wrongfully taken by others.

At the same time, the owner remains subject to Islamic responsibilities and restrictions regarding how wealth is acquired and used.

Thus, Islamic ownership involves both:

Individual right + Legal responsibility

12. Full Flow of Understanding

The whole concept can be understood in this order:

1. Islamic Law recognizes a valid way of acquiring something [1]

↓

2. A person becomes the owner

↓

3. The property becomes exclusively connected to that person

↓

4. The owner gains the right to use, benefit from, sell, rent, or otherwise deal with it

↓

5. Those dealings must remain lawful

↓

6. Other people cannot interfere without permission or legal authority

↓

7. If the owner lacks legal capacity, a guardian or agent may act for him

↓

8. The guardian or agent does not become the owner

↓

9. When the legal impediment disappears, the owner’s personal authority to deal with the property returns

13. One Complete Example

Suppose Ali inherits a house when he is 10 years old.

Step 1 — Ownership arises

The inheritance legally transfers the house to Ali.

Result: Ali owns the house.

Step 2 — Ownership is exclusive

Other people cannot simply take or sell the house.

Result: The property belongs specifically to Ali.

Step 3 — Ali has limited legal capacity

Because Ali is still a child, he may not personally handle major transactions involving the house.

Step 4 — Guardian manages the property

Ali’s guardian may manage the house for Ali’s benefit.

Step 5 — Guardian is not owner

The guardian only has authority to act on Ali’s behalf.

Ali remains the real owner.

Step 6 — Ali becomes legally capable

When Ali reaches the required legal capacity, he can personally manage his property.

The flow is therefore:

Inheritance → Ownership → Child remains owner → Guardian temporarily manages → Legal capacity achieved → Ali personally manages his property

14. Key Points to Remember

1. Ownership (al-milkiyyah) is a legally recognized relationship between a person and something owned. [1]
2. Ownership gives the owner an exclusive right over the owned item.
3. The owner may use, sell, rent, gift, or otherwise deal with the property as long as the dealing is lawful.
4. Ownership may include not only physical objects but also certain benefits and legal rights, such as usufruct.
5. Other people generally cannot deal with the owner’s property without authorization.
6. A guardian or agent is not the owner; they only act on behalf of the owner.
7. A child or mentally incapacitated person may still legally own property even if another person must manage it.
8. Ownership rights in Islamic Law are recognized and regulated by Shari’ah, with consideration given to both individual rights and the welfare of society. [1]

Citations

[1] The source explains that ownership and other legal rights are established through Islamic Legal (Shar’i) recognition. It states that such rights are derived from the sources of Islamic Law and are protected while taking the interests of society into consideration.

[2] See the juristic discussions of ownership cited in the original text: Ibn al-Humam (Hanafi), vol. 5, p. 74; Al-Qarafi (Maliki), vol. 3, p. 208 onwards.

Islamic Law of Transaction: Preliminaries on Ownership

Simple Meaning

Ownership means having the legal right to possess, use, and benefit from something.

Ownership is very important in every economic system. One of the main differences between capitalism and socialism is how they deal with ownership.

• Capitalism generally gives individuals more freedom to own private property.
• Socialism gives greater importance to public or state ownership.

Therefore, understanding ownership in Islam is important because it helps us understand how Islam deals with economic matters.

Islamic View of Ownership

Islam recognizes and protects private ownership, but ownership is not completely unlimited.

A person may own property and benefit from it, but they should not use their ownership in a way that harms other people or society.

Example

Ahmad owns a piece of land.

He has the right to:

• live on it,
• rent it,
• sell it, or
• use it for business.

However, he should not use the land in a way that seriously harms his neighbors or the public.

So, Islam tries to create a balance between individual rights and public benefit.

Public Ownership

Some natural resources may be treated as property belonging to society as a whole rather than to one individual.

Examples may include:

• crude oil,
• minerals, and
• other important natural resources.

The government may manage these resources on behalf of society.

Example

If a large oil reserve is discovered in a country, it may be regarded as a public resource rather than the private property of one person.

The government can manage it for the benefit of the people.

Islamic Law and Property Rights

Islamic jurisprudence has long discussed rules relating to:

• ownership,
• contracts,
• damage caused to others,
• protection of property, and
• rights connected to property.

These principles show that Islamic law contains rules that can be applied to economic and property matters in different times and places.

Main Idea

Islam allows people to own property, but ownership should be exercised responsibly.

In simple words:

Islam protects private ownership while making sure that ownership does not harm society.

Topics Covered in This Part

The discussion of ownership is divided into six chapters:

1. Definition of ownership – What does ownership mean?
2. Eligibility for ownership – Who can own property?
3. Types of ownership – What different forms of ownership exist?
4. Types of limited ownership – Ownership where some rights are restricted.
5. Types of unlimited ownership – Ownership with wider rights over the property.
6. Constrained and unconstrained ownership – Whether ownership is subject to certain conditions or restrictions.

Simple Example

Suppose Ali owns a house.

• The house belongs to Ali → ownership.
• Ali has the legal ability to own it → eligibility for ownership.
• He may own the whole house or only part of it → types of ownership.
• He may have only the right to use the house for a certain period → limited ownership.
• He may fully own and control the house → unlimited ownership.
• His use of the house may still be subject to Islamic and legal rules → constrained ownership.

I