An Islamic bank has signed an Istisnah agreement with its customer for sale of a property (to be developed)‎ whereby the bank is the seller and the customer is the purchaser

Fatawa Question

An Islamic bank has signed an Istisnah agreement with its customer for sale of a property (to be developed) whereby the bank is the seller and the customer is the purchaser. As per the agreement, the bank will deliver the property to the customer upon completion and the customer shall start payment of the Istisnah price in agreed installments. During the completion period, the customer has approached the bank with a request for certain modifications to the specifications of the property which shall result in increasing the cost of construction to the bank beyond the amount of Istisnah agreement. How should the bank handle the customer’s request ?

Fatwa

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Publisher

Islamic Finance News

Publication Date

2013-08-07

Country of Publication

Malaysia

Main Subjects

Economics & Business Administration
Islamic Studies

Data Type

Fatawa

Language

English

Record ID

BIM-784601

• APA
• MLA
• AMA