{"id":9472,"date":"2017-11-08T18:36:27","date_gmt":"2017-11-08T18:36:27","guid":{"rendered":"http:\/\/daruliftabirmingham.co.uk\/?p=9472"},"modified":"2020-06-28T12:38:12","modified_gmt":"2020-06-28T12:38:12","slug":"al-rayyan-housing-scheme","status":"publish","type":"post","link":"http:\/\/daruliftabirmingham.co.uk\/home\/al-rayyan-housing-scheme\/","title":{"rendered":"Al Rayyan Bank&#8217;s Housing Scheme"},"content":{"rendered":"<p style=\"text-align: right;\">\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\"><strong>Fatwa ID: 02301<\/strong><\/span><\/span><\/span>\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\"><strong>Answered by: Mufti Muhammad Adnan<\/strong><\/span><\/span><\/span>\n<\/p>\n<p>\n\t&nbsp;\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><u><span style=\"color:#000000;\"><strong>Question<\/strong><\/span><\/u><\/span><\/span>\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">Could you please shed some light on Al-Rayyan banks housing scheme? Is it permissible to buy a house through this scheme?<\/span><\/span><\/span>\n<\/p>\n<p>\n\t&nbsp;\n<\/p>\n<p align=\"center\">\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><strong><span dir=\"RTL\">\u0628\u0650\u0633\u0652\u0645\u0650 \u0627\u0644\u0644\u0647\u0650 \u0627\u0644\u0631\u0651\u064e\u062d\u0652\u0645\u0646\u0650 \u0627\u0644\u0631\u0651\u064e\u062d\u0650\u064a\u0652\u0645<\/span><\/strong><\/span><\/span>\n<\/p>\n<p align=\"center\">\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><strong><u>In the name of Allah, the Most Gracious, the Most Merciful<\/u><\/strong><\/span><\/span>\n<\/p>\n<p align=\"center\">\n\t&nbsp;\n<\/p>\n<p align=\"center\">\n\t&nbsp;\n<\/p>\n<p align=\"center\">\n\t&nbsp;\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><u><span style=\"color:#000000;\"><strong>Answer:<\/strong><\/span><\/u><\/span><\/span>\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">There are 2 conflicting fatawa for Al-Rayan Bank. The first fatwa is by the esteemed world-renowned Darul Ifta Camperdown (askimam.com)<\/span>&nbsp; <a href=\"http:\/\/askimam.org\/public\/question_detail\/34682\">http:\/\/askimam.org\/public\/question_detail\/34682<\/a><\/span><\/span>\n<\/p>\n<p>\n\t&nbsp;\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">We have studied the process guide of the Home Purchase Plan offered by Al-Rayan Bank of UK. We observe that the purchase plan is based on the diminishing partnership model which entails&nbsp;<\/span><\/span><\/span>\n<\/p>\n<ul>\n<li>\n\t\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">&nbsp;Joint partnership of the assets between Al-Rayan Bank and its &ldquo;client&rdquo;.&nbsp;<\/span><\/span><\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">&nbsp;Ijarah (leasing) to occupy the Banks share &nbsp;<\/span><\/span><\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">&nbsp;Purchase of Al-Rayans Share by the client in the future&nbsp;<\/span><\/span><\/span>\n\t<\/li>\n<\/ul>\n<p>\n\t&nbsp;\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">We understand the offering letter is for the following:<\/span><\/span><\/span>\n<\/p>\n<ul>\n<li>\n\t\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">&nbsp;Diminishing Co-ownership Agreement&nbsp;<\/span><\/span><\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">&nbsp;Leasing Agreement&nbsp;<\/span><\/span><\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">&nbsp;Service Agency Agreement&nbsp;<\/span><\/span><\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">&nbsp;Legal Charge&nbsp;<\/span><\/span><\/span>\n\t<\/li>\n<\/ul>\n<p>\n\t&nbsp;\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">Each one of these transactions mentioned above is permissible. However, combining these transactions in a single transaction is impermissible and combining them together by making each one of them a condition to the other is also impermissible&nbsp;. &nbsp;<\/span><\/span><\/span>\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">However, we do not understand what is the service agency agreement. Since this is a partnership, the partners are bound to pay for their expenses pro-rata. This includes the legal charge. It is thus incorrect to impose all charges only onto the client. Hence the condition on page 17 &ldquo;&nbsp;You will also be required to pay for the cost of Al Rayan Bank`s solicitors&rdquo; is an invalid condition and therefore impermissible.&nbsp;<\/span><\/span><\/span>\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">Furthermore, in a diminishing partnership agreement, there will be a sale of units until the client becomes the owner of the house. How and when will this agreement be done? That is not stated in the Home Purchase Plan.&nbsp;<\/span><\/span><\/span>\n<\/p>\n<p>\n\t&nbsp;\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">Hereunder is the correct procedure to execute a diminishing partnership deal&nbsp;:&nbsp;<\/span><\/span><\/span>\n<\/p>\n<ol>\n<li>\n\t\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">At the time of signing the contract of purchase, the client may sign a one-sided promise to purchase different units of the share of the financer (which in this case is the bank) periodically and the financier may undertake that when the client will purchase a unit of his share, the rent of the remaining units will be reduced accordingly.&nbsp;<\/span><\/span><\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">At the time of purchase of each unit, ijab (offer) and qubool (acceptance) must take place at that particular date&nbsp;<\/span><\/span><\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">The price of the unit can be mutually agreed and can also be the market value of that house prevalent on that day.&nbsp; <\/span><\/span><\/span>\n\t<\/li>\n<\/ol>\n<p>\n\t&nbsp;\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">&nbsp;<\/span><\/span><\/span>\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">And Allah Ta&rsquo;\u0101la Knows Best<\/span><\/span><\/span>\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">Hafizurrahman Fatehmahomed&nbsp;<\/span><\/span><\/span>\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">Student Darul Iftaa Netherlands&nbsp;<\/span><\/span><\/span>\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">Checked and Approved by Mufti Ebrahim Desai<\/span><\/span><\/span>\n<\/p>\n<p>\n\t&nbsp;\n<\/p>\n<hr \/>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">The second fatwa is by a former student of Darul Ifta camperdown, Hadhrat Shaykh Mufti Faraz Rabbani (May Allah Ta&rsquo;ala shower him with mercy and protect him)<\/span><\/span><\/span>\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><a href=\"http:\/\/darulfiqh.com\/is-it-permissible-to-purchase-a-house-via-al-rayan-bank\/\">http:\/\/darulfiqh.com\/is-it-permissible-to-purchase-a-house-via-al-rayan-bank\/<\/a><\/span><\/span>\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">The Home Purchase Plan products offered by al Rayan Bank have been signed off as Shariah compliant by Al Rayan&rsquo;s Sharia Supervisory Committee. This includes competent and reputable Shariah scholars in the Islamic Finance industry such as Sheikh Dr Abdul Sattar Abu Ghuddah, Sheikh Nizam Muhammed Saleh Yaqoobi and Mufti Abdul Qadir Barkatulla. One may follow their approval and use the services of al Rayan Bank.<\/span><\/span><\/span>\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">Product development and Shariah advisory on Islamic finance products is a very specialised industry. To sign off a product as Shariah compliant or to reject the Shariah compliancy of any product requires a number of expertise. One needs to have knowledge, proficiency and literacy in at least the following areas:<\/span><\/span><\/span>\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">1)&nbsp;&nbsp; Fiqh al-Mua&rsquo;mal\u0101t (Transactional laws of Shariah)<\/span><\/span><\/span>\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">2)&nbsp;&nbsp; Usul al-Fiqh<\/span><\/span><\/span>\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">3)&nbsp;&nbsp; Regulation and governance<\/span><\/span><\/span>\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">4)&nbsp;&nbsp; Economics<\/span><\/span><\/span>\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">5)&nbsp;&nbsp; Experience in the financial industry<\/span><\/span><\/span>\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">6)&nbsp;&nbsp; Understanding of legal issues in the jurisdiction of operations<\/span><\/span><\/span>\n<\/p>\n<p>\n\t&nbsp;\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">Therefore, the above scholars are reputable and well-grounded in Islamic finance and other necessary areas for practice. One may follow their approval and use the facilities of al Rayan Bank. Some issues may not be understood by all or may be open for debate, nevertheless, as it is an issue of&nbsp;<em>ijtihad<\/em>&nbsp;and reasoning, you may follow their approval and certification.<\/span><\/span><\/span>\n<\/p>\n<p>\n\t&nbsp;\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">And Allah Ta&rsquo;\u0101l\u0101 Alone Knows Best<\/span><\/span><\/span>\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">Mufti Faraz Adam al-Mahmudi,&nbsp;<\/span><br \/>\n\t<a href=\"http:\/\/www.darulfiqh.com\/\">www.darulfiqh.com<\/a><\/span><\/span>\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">5<sup>th<\/sup>&nbsp;December 2016<\/span><\/span><\/span>\n<\/p>\n<p>\n\t&nbsp;\n<\/p>\n<hr \/>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">The conclusion of Darul Ifta Birmingham is that Ar-Rayan bank&rsquo;s mortgage scheme should be avoided, but it is better than going to a normal non-islamic bank. One should avoid it but as a LAST and FINAL resort (i.e this mortgage stands against another non-islamic bank&rsquo;s mortgage) you may follow the opinion of Mufti Faraz Adam al-Mahmudi (May Allah Ta&rsquo;ala preserve him). Taqwa denotes avoidance but the fatwa is also there if it&rsquo;s an absolute necessity.<\/span><\/span><\/span>\n<\/p>\n<p>\n\t&nbsp;\n<\/p>\n<p>\n\t&nbsp;\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">Only Allah knows best<\/span><\/span><\/span>\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">Written by Maulana Muhammad Adnan<\/span><\/span><\/span>\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">Checked and approved by Mufti Mohammed Tosir Miah<\/span><\/span><\/span>\n<\/p>\n<p>\n\t<span style=\"font-family:verdana,geneva,sans-serif;\"><span style=\"font-size:16px;\"><span style=\"color:#000000;\">Darul Ifta Birmingham<\/span><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fatwa ID: 02301 Answered by: Mufti Muhammad Adnan &nbsp; Question Could you please shed some light on Al-Rayyan banks housing scheme? Is it permissible to&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[17],"tags":[1725,1726,1728,1727,1277],"_links":{"self":[{"href":"http:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/9472"}],"collection":[{"href":"http:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/comments?post=9472"}],"version-history":[{"count":3,"href":"http:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/9472\/revisions"}],"predecessor-version":[{"id":15945,"href":"http:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/9472\/revisions\/15945"}],"wp:attachment":[{"href":"http:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/media?parent=9472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/categories?post=9472"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/tags?post=9472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}