Ijarah

Ijarah is a contract to use something, or someone's labor, for a set period in exchange for payment.

What it means for me: Ijarah covers renting an apartment and hiring a worker under the same idea. You are paying for the use of something, not buying it outright. The contract ends when its term ends or the agreed use is completed.

Example: A family rents an apartment for one year at a fixed monthly rent. That agreement is an ijarah: they pay for the use of the home, and ownership never changes hands.

Do not confuse with: Bay, a sale. Ijarah transfers only the right to use something for a time; a sale transfers ownership of the thing itself, permanently.

If scholars differ: Contemporary scholars differ on how a lease-to-own contract should be structured. Most require it to remain two separate contracts: a lease and a later transfer of ownership. One disguised sale is not accepted.