Musharakah Mutanaqisah Home Financing Issues In Practice

Issues in practice find read and cite all the research you need on researchgate.

Musharakah mutanaqisah home financing issues in practice. Pdf on jan 1 2016 alam asadov and others published musharakah mutanaqisah home financing. Musharakah mutanaqisah home financing by islamic banks in malaysia. Home financing pricing issues in the bay bithaman ajil bba and musharakah mutanaqisah mmp global journal al thaqafah. Issues with the product s applications in islamic home financing.

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. Islamic home financing musharakah mutanaqisah legal framework. 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. 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.

As relatively anew home financing product. 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. A critical analysis method to examine whether the current practice of mm home financing among the. 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.

For example home financing. 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. An overview of musharakah mutanaqisah contract the concept of musharakah mutanaqisah mm mode of financing where.

This paper aims to examine the practical issues in the musharakah mutanaqisah mm financing and subsequently recommends possible solutions to mitigate these issues and improve the current practice this paper analyses the theory and current practices of mm offered by islamic banks it is suggested that islamic financial institutions consider revaluation of property s value to its fair. Issues and recommendations in musharakah mutanaqisah house financing 1. Identify several practical issues related to mm home financing.