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The question

Is it permissible to sign purchase contracts with the bank without ensuring the transfer of ownership of the property to its name, and is it permissible to pay the difference in the amount to the bank to cover the excess value of the property beyond the specified amount?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

Purchasing property through a bank takes two forms:

The first: The bank acts merely as a financier, and this is a usurious loan, which is forbidden.

The second: The bank purchases the property and then sells it to the client. This is permissible under certain conditions: The bank must not stipulate a late payment penalty, the client must not sign a binding purchase agreement before the bank takes possession of the property, and the bank must not require an advance payment before it takes possession of the property. The bank is not at fault for determining the price of the house based on the number of installment years.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
18907
Added here
. This is when the answer was added to El Fatwa, not the fatwa's date.
Text
Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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Read the full answer on Ftawy