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The Arabic word areat (written as Areeat) by Charles Hamilton in his translation of Hedaya can be translated as usufruct (which in Latin is composed of USUS means use and fruct means fruit). In the language of law, it means, right of enjoying a thing which belongs to another.
In English as translated by Charles Hamilton in the translation of Hedaya, it means loan. In the present age, it is considered as the loan from bank or financial institution on interest basis (mark-up). The subject matter of usufruct is termed as areat or 'mustaar'. In English language no distinction is made between areat and loan. However, Islamic view draws a distinction between 'areat' and 'loan'. Loan is qarz. If things borrowed are returned after their use with the same quality, then being no change in the 'nature', it is areat. But if, they are returned identically, it is treated as 'qarz'. The Shaafi school of thought defines areat to signify simply a licence to use the property belonging to another. According to 'Shaafi', borrower is 'zamin' himself, and he looks after to its protection.
According to the Hanafi school, areat is 'ownership' for the period under agreement. The difference of opinion is its "use" and "benefits". A strong view is that borrower can use the property independently but risk is of damages borne by the borrower, and compensation thereon. For example, if 'A' lends his land to B and B plants trees and builds a house on that land with or without permission of the lender; on vacation, the lender cannot be forced to pay value of those trees, or value of the house payable to the borrower.

Copyright Business Recorder, 2015

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