Is it permissible to purchase a house directly from its owner by means of an agreement with an Islamic bank whereby the bank buys the house and pays its price, then I pay a portion of the price to the bank and mortgage the house to the bank until the full installments are paid, knowing that the bank will pay two-thirds of the price with an annual profit ranging from 5 to 7 percent? Is this considered usury (riba), and does the bank own the house in this case?

The aforementioned transaction is permissible if the bank first purchases the house for itself and then sells it to you, even at a higher price. The lack of official registration of the house in the bank's name does not affect the permissibility if the bank legally owns the commodity before the sale and bears responsibility for damage before delivery and for defects after delivery.

Similarly, paying a down payment does not affect it, and the bank has the right to mortgage the house until the full price is paid, according to the preponderant opinion, which was adopted by the Islamic Fiqh Academy.