Purchase undertaking issues in Musharakah Mutanaqisah home financing
Author
Source
ISRA International Journal of Islamic Finance
Issue
Vol. 3, Issue 1 (30 Jun. 2011), pp.25-47, 23 p.
Publisher
International Shari'ah Research Academy for Islamic Finance
Publication Date
2011-06-30
Country of Publication
Malaysia
No. of Pages
23
Main Subjects
Economy and Commerce
Financial and Accounting Sciences
Religion
Islamic Studies
Topics
- Islamic jurisprudence
- Islamic economics
- Housing
- Financing
- Debt repayment
- Debts
- Stockholders
- Industries
- Purchasing
- Corporations
- Malaysia
- Bank loans
- Customers
- Partnerships
- Diminishing partnership
- Islamic Banks
Abstract EN
This article aims to discuss the issues of purchase undertaking in mushÉrakah mutanÉqiÎah home financing as practised by Islamic banks in Malaysia.
This aim can only be achieved by analysing and examining its features in order to determine its inclination either towards shirkat al-milk (co-ownership) or shirkat al-ÑuqËd (contractual partnership).
On closer examination, the study also examines the legitimacy of first and second promises (waÑd) by the customer to gradually purchase the bank’s portion, and to give rights to the bank in the event of default: either to sell the bank’s portion in credit to the customer or to purchase the customer’s portion.
The study applies the qualitative research method comprising document analysis and interviews with practitioners.
The study shows that the home financing is a shirkat al-milk in its initial stage, but it cannot be considered permanently as shirkat al-milk as it does not comply with all the features of shirkat al-milk.
The study also found that scholars were in dispute as to whether firstly, to allow a pre-determined price of the bank’s portion or share in the house and secondly, to stipulate a second promise in the event of default.
American Psychological Association (APA)
Naim, Asmadi Muhammad. 2011. Purchase undertaking issues in Musharakah Mutanaqisah home financing. ISRA International Journal of Islamic Finance،Vol. 3, no. 1, pp.25-47.
https://search.emarefa.net/detail/BIM-717616
Modern Language Association (MLA)
Naim, Asmadi Muhammad. Purchase undertaking issues in Musharakah Mutanaqisah home financing. ISRA International Journal of Islamic Finance Vol. 3, no. 1 (Jun. 2011), pp.25-47.
https://search.emarefa.net/detail/BIM-717616
American Medical Association (AMA)
Naim, Asmadi Muhammad. Purchase undertaking issues in Musharakah Mutanaqisah home financing. ISRA International Journal of Islamic Finance. 2011. Vol. 3, no. 1, pp.25-47.
https://search.emarefa.net/detail/BIM-717616
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 47
Record ID
BIM-717616