Conventional and Islamic finance of home purchase : purchasing house with bank loan

السؤال

Assalamu Alaykum wa Rahmatu Allahi wa Barakatuh, I hope you are fine. In the Latin culture of law, when someone wants to purchase a house, 1) first of all, he has to go to the financial institution, I.e. a bank, to request a loan. When the negotiation finishes, the bank gives to the debtor the sum of money, and this is notarized by the notary, who witnesses and writes the loan contract, with the specified interest rate. So, the interest based loan has been created. Afterwards, 2) The bank wants a guarantee, I.e. the mortgage, so with the notary’s deed goes to the land registry in order to create it. In this point, the register checks all the points of the contract between the bank and the debtor and records the information in order to reflect that this house has the charge of the mortgage and it is erga omens (can be exercised with respect to third parties) and to execute if the debtor does not pay. And finally the register creates the mortgage, without doing anything else than observe the legality and the conditions of the contract. My question is : In all this process 1) and 2), what are the actions that fall in Allah’s wrath based on Islam ? Can we consider the notary a witness of the contract, besides the debtor and the bank ? And, once the contract and the deed are created, the activation of the mortgage can be considered to be equal to the constitution of the Haram interest based loan ? What are the boundaries of the Haram and the Halal between the direct and indirect collaboration in this kind of transaction, when in many Fatwa we read that the indirect one may not be considered totally Haram. Jazaka Allahu Khairan. Jazakum Allahu Khairan for your constant help Yours, Sami

جواب الفتوى

أنقر هنالمشاهدة هذا المحتوى

تاريخ النشر

2008-09-25

التخصصات الرئيسية

العلوم المالية و المحاسبية
الدراسات الإسلامية

الموضوعات

• الفقه الإسلامي
• الإسكان
• التمويل
• القروض
• الشراء
• الممتلكات العقارية
• شركات التمويل التجاري
• الربا
• الرهن العقاري

عدد الصفحات

1

نوع البيانات

فتاوى

لغة النص

الإنجليزية

رقم السجل

BIM-734866

• APA
• MLA
• AMA