Posted by: islamicfinancingnews | May 14, 2012

Starting off Islamic mortgages with an Offer to Purchase

After months of searching, you’ve finally found a family home that suits your needs and budget and that includes the right Islamic mortgages to set your Islamic finance in place.

From there, you’ll need to make an Offer to Purchase to the seller which is usually prepared by a realtor or lawyer on behalf of the buyer. The document sets out: the full names of the buyer(s) and seller(s); legal description of the property and municipal address; the price the buyer is offering to purchase the property and specific items the buyer wants included in the purchase such as major household appliances; and the closing date or date of possession. A deposit amount held in trust by the listing brokerage or seller’s lawyer accompanies the offer and is applied towards the purchase price and closing costs.

Offers are usually prepared with conditions that include such things as allowing the buyer adequate time to obtain approval from a lender for mortgage financing or a home inspection. If the conditions are not met by the specified expiry date, the offer becomes null and void and the deposit returned to the buyer in full. The offer is firmed up or becomes final only when all the conditions are fulfilled.

As with any legal document, read over an offer to purchase carefully before you sign it to make sure all the information is correct. Entering into the proper Islamic finance arrangement will help you to secure the right home.


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