Ijara by Zubair Usmani

Top 20 FREQUENT WORDS

lease 28 asset 18 lessee 18 lessor 17 leased 15 ijara 14 rent 10 mode 9 financing 8 agreement 7 leasing 7 contract 6 ownership 6 rules 6 sale 6 date 5 rental 5 client 4 expenses 4 future 4 liable 4 payment 4 risk 4

DOCUMENT KEY POINTS

the concept of ijara doctor muhammad zubair usmani sharia advisor muslim commercial bank ltd
jamia darul uloom karachi at alhuda cibe a nibaf islamabad

i R subject of lease valuable identified and quantified i R consumable things cannot be leased out anything which cannot be used without consuming cannot be leased out e
basic rules of ijara i R transferring of usufruct not ownership to another person for an agreed price at an agreed consideration

i R period of lease must be determined in clear terms at the time of contract i R lease for specific purpose only if no specific purpose is identified in the agreement then it can be used for any purpose for which it is used in normal course
basic rules of ijara i R all liabilities of ownership are borne by lessor corpus of leased property remains in the ownership of the seller

i R lease of jointly owned property is permitted and rentals shall be distributed between all the joint owners according to the proportion of their respective shares in the property
basic rules of ijara i R lessee as ameen the lessee is liable to compensate the lessor for every harm to the leased asset caused by any misuse or negligence

the determination of rental on the basis of the aggregate cost incurred in the purchase of the asset by the lessor as normally done in financial leases is not against the rules of shariah
it is permissible that different amounts of rent are fixed for different phases during the lease period provided that the amount of rent for each phase is specifically agreed upon at the time of effecting a lease

the lease period shall commence from the date on which the leased asset has been delivered to the lessee
basic rules of ijara i R determination of rental the lessor cannot increase the rent unilaterally and any agreement to this effect is void

if the supplier has delayed the delivery after receiving the full price the lessee should not be liable for the rent of the period of delay
different relations of the parties there are two separate relations between the institution and the client one of an agent and the other of a lessee

but in leasing it is permissible because in leasing the asset remains under the risk and ownership of the lessor throughout the leasing period
i R a murabaha can not be transacted on a future date as the sale would be executed simultaneously after taking delivery from the supplier and seller would never bear its risk which shariah does not permit

expenses consequent to ownership to the lessor as the lessor is the owner of the asset he is liable to pay all the expenses incurred in the process of its purchase and its import to the country of the lessor for example expenses of freight and customs duty etc
lessee as ameen the lessee is responsible for any loss caused to the asset by his misuse or negligence

variable rentals in long term leases in this case the lessor has two options i R a lease contract can have a condition that the rent shall be increased according to a specified proportion e
i R he can contract lease for a shorter period after which the parties can renew the lease at new terms and by mutual consent

termination of lease if the lessee contravenes any term of the agreement the lessor has a right to terminate the lease contract unilaterally
penalty for late payment of rent the lessor cannot charge an additional amount in case the lessee delays payment of the rent

the residual value of the leased asset through a mutual agreement of lease after the expiry of the lease period the corpus of the leased asset cannot be transferred to the lessee otherwise it becomes hire purchase
it is a well settled rule of islamic jurisprudence that one transaction cannot be tied up with another transaction so as to make the former a pre condition for the other

ijarah wa iqtina the lessor may sign a separate promise to gift sale the leased asset to the lessee at the end of the lease period subject to his payment of all amounts of rent
sub lease if the leased asset is used differently by different users the lessee cannot sub lease the leased asset except with the express permission of the lessor

sale and lease back when the client sells the asset to the bank the entire risk and rewards are transferred to the bank who is then is responsible for the ownership related expenses in this case the bank is allowed to lease the asset to the client but there are conditions which have to be followed to make the entire transaction sharia compliant
i there should be at least one year lease period i there should be separate contracts for sale and lease i the agreement to sell at the end of the lease must be separate i the intention of the client is to avoid interest related transactions

Please note, This is an auto generated summary based on sentances position in the document and other factors

DOCUMENT WORD ANALYSIS

Main Category

AlHuda Material\islamic banking

KeyWords

contract price sale asset financing lease client purchase ijarah payment profit musharakah lessee amount commodity housing agreement contracts ownership project

DOCUMENT REFERENCES

Number of Pages

16

Published Date

2016-09-17 00:25:39

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Ijara by Zubair Usmani

Contents

Top 20 FREQUENT WORDS

DOCUMENT KEY POINTS

DOCUMENT WORD ANALYSIS

Main Category

KeyWords

RELATED DOCUMENTS

DOCUMENT REFERENCES

Number of Pages

Published Date

Full Document

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