View source for Musharakah Housing Finance through Diminishing Musharkah



== Top 20 FREQUENT WORDS ==
client 20
islamic 11
shariah 11
musharaka 10
ownership 10
banks 9
price 9
rent 8
agreement 7
customer 7
joint 7
musharakah 7
amount 6
aug 6
payment 6
rental 6
shares 6
apr 5
asset 5
finance 5
jan 5
jun 5
mar 5
mortgage 5
nov 5
oct 5



== DOCUMENT KEY POINTS ==
*shirkat ul milk means joint ownership between two or mor or parties in a particular property or asset which may not nec for earning profit
*the sol being to share profits and losses arising from a the jointly own enterprise in accordance with the principles of shariah

*home mortgage a c in pakistan islamic home finance is generally on diminishing musharaka mode of islamic fina a c diminishing musharaka refers to a partnership established under a contract by the mutual con the parties for joint ownership of the property

*joint ownership bank rent cus musharaka gradual transfer of ownership the customer approaches the bank with the request financing the bank enters into a musharakah joint ownership agreement with the customer and both of them pay th respective shares to the seller of the asset
*customer pays rent for the use of banks share in the ownership of the asset is gradually transferred to the customer upon payment of asset price

*the property will be registered in the name of the memorandum of client and an equitable mortgage will be created title deed over the property in the name of the bank
*steps particulars document bank and the client will enter into a musharakah musharakah agre agreement to jointly purchase own the property and the client will agree to lease banks undivided share in the property for an agreed period based on certain terms and conditions

*a c in addition every time a property is sold th has to pay a high cost of registrationdou taxed a c however according to islamic shariah la has to be a joint ownership for which the b signs a legally binding musharakah joint ownership agreement with the client
*a c in order to protect the bank s ownership in property the client has to create a mortga the property in favor of the islamic bank

*what will be a musharakah total value of the property rs

*bank s share of the rent will determined as follows monthly rent total value of x banks investment banks share in month the property in the property example rs rs x rs based on the above example the first monthly installm rs rent price of one unit
*this installment w monthly as the client will buy one unit every month

*he als certain share of the property every month and by the end of the tenure th bought over the entire property from the bank and becomes the sole own property price no
*of shares price of share length of contract irr rental per share per month percent financed amount financed jan feb mar apr may jun jul aug sep oct nov shares customer equity shares bank equity share price payments rental total

*amortization table diminishing musharakah ba value rate bank s share rent pm total units bank s share i bank owned unit month price per uni

*a c to discourage late payment in case of a late the client has to pay a certain amount in a ch maintained by the bank according to his un in the musharakah agreement
*late payment a c as in islamic shariah late payment fee c charged and booked in banks p l

*the client is liable to buy out the ban investment at the pre agreed price and a agreed schedule
*a c another mitigant is that the loan to value maximum of the property value whic addresses price fluctuations

*in the eve default bank will issue a notice of termination to upon which the client would have to buy out the value of banks share of the property pursuant to purchase undertaking
*a c hence this liability would become a conventiona and would be claimable in the banking court as financial institutions recovery of finances ord section

*a c mitigant mandatory requirement for the client to insurance takaful coverage for property and life a c the bank also has recourse to the land
*capital impairment ris a c if the mortgaged property gets totally destroyed b of factors beyond the control of the client

*a the shariah advisor will periodically audit any product a provide approvals for deviations if any a a software will be in place to ensure proper accountin maintenance a c islamic bank will undertake a shariah compliance review annually performed by shariah advisory board or externa function having required knowledge and expertise
*a c mitigant bank should have adequate systems and contro place including global shariah advisory board as well as shariah advisor for day to day advisory to ensure complia shariah rules and principles


 ''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



== RELATED DOCUMENTS ==
:[[An Introduction to Islamic Finance by Taqi Usmani]] 
:[[Analysis of Islamic Financial Instruments in Terms of Microf]] 
:[[Bai ( Buying & Selling ) By Zubair Mughal]] 
:[[Bai Istisna by Mufti Mujeeb]] 
:[[Bai Salam by Mufti Mujeeb]] 
:[[contracts in islamic commercial Finance]] 
:[[Diminishing Musharaka & Shariah]] 
:[[Diminishing Musharaka by Mehmood Shafqaat]] 
:[[Diminishing Musharakah by Yahya Asim]] 
:[[Diminshing Musharakah by Muhammad Shaheed Khan]] 
:[[FAQs on Islamic Banking by State Bank of Pakistan]] 
:[[Glossary of Islamic Banking and Finance]] 
:[[Ijara  by Zubair Usmani]] 
:[[Ijara by Mehmood Shafqat 25-10-07]] 
:[[Ijarah ( Lease ) by Dr.Abdul Sattar Abu Ghuddah]] 
:[[Ijarah by Dr. Abdul Sattar]] 
:[[Ijarah by Umer Mustafa]] 
:[[Intriduction to Islamic Banking and finance By Muhammad Ayub]] 
:[[Islam, Murabaha and Fixed Deposits]] 
:[[Islamic-Finance]] 
:[[Islamic Banking � Products & Operations by Duncan R. Smith]] 
:[[Islamic Banking and Investment by ML. Shoayb Joosub]] 
:[[Islamic Banking modes for House Building Finance by Mahm]] 
:[[Islamic BankingTuranBank2]] 
:[[Islamic Finance by Mahmood Al- sheahabi]] 
:[[Islamic Financial Accounting Standards to Ijarah by Ahmed Al]] 
:[[Islamic Financial Services]] 
:[[Islamic modes of Business and Finance]] 
:[[Islamic Modes of Finance by Muhammad Khaleequzzaman]] 
:[[Istisna  as Mode of Finance]] 
:[[Istisna by Muhammad Khaleequzzaman]] 
:[[Istisna by Mujeeb Baig]] 
:[[Mudarabah by Muhammad Zubair Usmani]] 
:[[Murabaha - Process, Documentation & Practical Issues by  (1)]] 
:[[Murabaha by Muftti Najeeb Khan]] 
:[[Murabaha Finance by Muhammad Tayyab Raza]] 
:[[Murabaha to Purchase Order by Muhammad Mohsin Ahmed]] 
:[[Musharaka by Muhammad Zubair Usmani]] 
:[[Musharakah and Mudarabah as Modes of Finance by Taqi Usmani]] 
:[[Musharakah Housing Finance through Diminishing Musharkah]] 
:[[Pratical Ijarah]] 
:[[Sharia compliance Issues in Islamic Banking by Mufti Najeeb ]] 
:[[Shariah Contracts in Islamic Banking and Finance by Hassan O]] 
:[[Shariah Legitemacy of Islamic Banking by Dr. M Tahir Mansoor]] 



== DOCUMENT REFERENCES ==


=== Number of Pages ===
18


=== Published Date ===
2005-09-21 11:42:33


== Full Document ==


[http://45.40.136.134/~hodhood/HodHoodDocuments/IslamicFinance/IslamicBanking/Musharakah%20Housing%20Finance%20through%20Diminishing%20Musharkah.pdf Read the Full Document]


[[Category:Islamic Finance]]

[[Category: Islamic Banking]]