Bai al-talj'iah

Definition of "Bai al-talj'iah"

Lit: A sales contract that is contrary to what it appears. Tech: It is a simulated sale in which the seller pretends to have sold his property when in fact he has not. For example, a person may show that he has sold his property to his son so that the state may not confiscate it. In recent times, this phenomenon was observed when in certain Muslim states the feudal lords transferred their lands to their relatives to avoid confiscation under land reforms regulations. It also refers to delaying tactics of a defaulting debtor in which he transfers his property or assets apparently to a third party for fear of creditors claiming a right on those assets against their debts. In fact, the assets are not transferred to anyone but it is posed as if they have been transferred. The third party whose name is used is also made to testify such a transfer though the claim is untrue.