Chapter on Pledges

He—may Allah have mercy on him—was asked:

A man pledged his house to another man as security for a sum payable on a specified date. When payment fell due, he was unable to pay. The pledgee said, “Sell me the house on condition that, if you repay me, you may take it back for the price; and if you live in it, I will not charge you rent.” Is this sale valid? The buyer has also erected a structure above the house; what is the ruling concerning it?

He replied:

This is not a valid sale. Rather, the house must be returned to its owner, and he must pay the outstanding debt. The buyer is to be credited for the construction he has undertaken. And Allah knows best.

He—may Allah have mercy on him—was also asked:

A man owns half an orchard, while the remainder belongs to another man. He borrowed his partner’s half to pledge it as security for a debt payable on a specified date, informing him of the amount of the debt and its term. His partner lent it to him, and he pledged the orchard to the creditor. He then redeemed his own share and sold it to the creditor for a specified price, and they offset the purchase price against the debt. Is he entitled to do this? And does the share of