Does the Murabaha contract offered by some banks in Morocco for purchasing a house, which involves the bank owning the house then selling it to the client in deferred installments with a profit margin, and imposes late payment penalties, and requires mandatory insurance for the bank, and prohibits renting the house without permission, and allows for the termination of the contract in several cases including non-payment or death, while demanding the client pay all outstanding installments and related expenses upon termination, does this contract respect Sharia regulations?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
This contract contains several Shariah violations: imposing a fine for delay in paying installments, which is usury (riba); not allowing the client to rent out his home without the bank's permission, which is a void condition; mandatory insurance on the home, and commercial insurance is forbidden; and conditions for annulment that permit the bank to annul the transaction, such as the death or insolvency of the client or damage to the home, which is impermissible. Therefore, it does not meet the Shariah requirements and it is not permissible to engage in this transaction.
Summarized from the full answer at Ftawy · imported
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- Original fatwa ID
- 94967
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