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Seems ok, but maybe not halcha limaaseh. See Shulchan Aruch Yoreh Deah siman 174 and Pischei Tshuvah #1 in the name of the Noda BiYehuda. He says the Mechaber's case of a sale with an option to be mivatel the sale at a later date is where the Mechaber says the fruits eaten would be ribbis. However, where the stipulation is to sell the land back, meaning ...


I don't see a problem in this scenario. Bava Metzia 65b says outright that it is okay to use land as collateral, which will pass into the lender's property when the borrower defaults on the loan. On that basis, treat this transaction as a loan and not as a sale: Reuven lends Shimon $10,000 and uses Shimon's field as collateral. The condition of the loan is ...

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