Musharakah Mutanaqisah Home Financing Issues In Practice
Musharakah mutanaqisah is an alternative contract that can be offered under home financing and can replace bai bithaman ajil bba as bba is similar to fixed rate debt financing or murabahah.
Musharakah mutanaqisah home financing issues in practice. Home financing pricing issues in the bay bithaman ajil bba and musharakah mutanaqisah mmp global journal al thaqafah. Issues in practice find read and cite all the research you need on researchgate. As relatively anew home financing product. The potentials of musharakah mutanaqisah for islamic housing finance.
Lastly this paper raises and analyses possible legal issues that may arise in enforcing a musharakah mutanaqisah home financing contract where a legal charge is created and where a trust is created. A critical analysis method to examine whether the current practice of mm home financing among the. Through extensive literature and scholars opinion the study reveals that the rental rate computation. Issues with the product s applications in islamic home financing.
This paper also elucidates the issues facing musharakah mutanaqisah home financing for properties under construction and proposes an alternative model for solving the highlighted issues. Pdf on jan 1 2016 alam asadov and others published musharakah mutanaqisah home financing. Rather a more collective efforts needs to be put in place to address these issues challenges so that the home financing products based on musharakah mutanaqisah principle will become more popular especially because the contract is more in line with higher objective of shariah as proven by global acceptance of shariah scholars on the permissibility of the contract. Identify several practical issues related to mm home financing.
The next two sections dis cuss the proposed revised mm contract that addresses the issues in executing this contracts in practice and concludes with a summary. Musharakah mutanaqisah based house financing legal issues and recommendations introduction in our world nowadays the contract of al bay bithaman ajil bba had always been used for long time duration of financing. Smolo e hassan m. Issues and recommendations in musharakah mutanaqisah house financing 1.
Introduction inthe early inception ofislamic banking and finance ibf in malaysia in 1983 the availability ofislamic mortgage isonly dominated by asingle instrument orproduct known asbay bithaman ajil bba home financing. For example home financing. Musharakah mutanaqisah home financing by islamic banks in malaysia.