Interest on Payment for an Apartment
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Question
I bought an apartment, and the agreement with the seller is that I will pay him half a million each month (3 payments). Now I want to postpone the next payment by half a month, and the seller agrees if I pay him 650,000 this month. Is there an issue of interest here, and what is the ruling if the contract states that everything is subject to a heter iska?
Answer
Shalom Rav,
This agreement constitutes explicit interest.
The clause in the contract stating it is subject to a heter iska does not help, as this is a new loan not specified in the contract.
A separate heter iska can be written for this loan. It will be effective if all conditions of the iska are met (such as the borrower having a business, etc.).