Is the Murabaha sale in Morocco, which involves paying a down payment, the bank purchasing the house and selling it in installments with a profit margin, and the presence of conditions on the buyer such as not renting the house to others, free from any Sharia prohibitions?
The answer summarizes the permissibility of the aforementioned procedures in Murabaha transactions, such as the "seriousness margin" (hamish al-jiddiyyah), mortgaging the property for its price, and stipulating Takaful insurance on the debt. This is based on what is stated in the Standards book of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). The seriousness margin is a cash amount paid to confirm the customer's earnestness, and only the value of the actual damage is deducted from it in case of default. The institution is also permitted to take legitimate guarantees such as a third-party guarantee, mortgaging the property, or the commodity. As for the bank's condition that the house be maintained, repaired, and not leased, it is considered a legitimate guarantee to preserve the value of the mortgaged property and secure the right.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Ftawy
- Original fatwa ID
- 172123
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- . 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.
- Read the full ruling
- Read the full answer on Ftawy