International trade and other sales : istisna’ ownership

Fatawa Question

Assalaamu Alaykum Dr. Kahf ; I pray that all is well with you and the family In Sha Allah. I've been conducting some research on the Istisna' construction financing particularly as practiced by Islamic Banks. Since Istisna is a sale contract with future delivery, how does the aspect of ownership work ? especially in the scenario of a construction developer who owns land is and is looking to build a building ? There are a couple of scenarios I can think of : a-The ownership of the land and the construction development is with the IFI until completion and then transferred over to the buyer. Or b-The ownership of the land and the construction development is with the buyer throughout the construction process. In case of (a), what rights would a buyer have ? especially considering they owned the land and now it’s in the ownership of the IFI. Jazaka Allah Khayr Ya Shaykh. Fiamanallah. Rauf

Fatwa

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Publication Date

2011-01-04

Main Subjects

Economics & Business Administration
Islamic Studies

Topics

• Islamic jurisprudence
• Manufactured goods sale
• Contracting out
• Islamic Banks

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-734284

• APA
• MLA
• AMA