Original question: Salam, for example, your holding a Shariah-compliant REIT for a few years now? But only recently it is not Shariah compliant. Can you still keep the REIT, hoping that it will become compliant again, or do you have to sell it immediately?

Answer (Vetted by Hafizuddin, Shariah Executive, Amanie Advisors):

Based on the practice of Shariah advisory firms, you first need to determine the Reclassification Date or Announcement Date (AD), whether it is in Profit or Loss.

If in PROFIT:
The investor must sell the REIT immediately on the AD. They are allowed to keep both the profit and any dividends received from the REIT prior to the sale up to the AD.

If in LOSS:
The investor may hold the REIT until breakeven. Once breakeven is reached, they must sell the REIT. If the sale results in a profit, the profit must be purified.

Allah knows best.

FAQ #43: Is taking a loan with interest for house upgrade permissible?