Posted by: islamicfinancingnews | November 10, 2014

Make sure your ijara mortgage has the right conditions

A Western style mortgage and an ijara mortgage differ in some fundamental ways but there are a few interesting parallels as well. For example, both ijara financing and the more traditional variety have certain regulations in place to ensure that both the sellers and the buyers are legally responsible and their needs are met through the legal documents they both need to sign. This save moneykind of attention to detail becomes especially important when you’re making an offer and at least some of the following conditions need to be included to protect the rights of the people involved.

  • For example you need to be sure the seller has the rights to the property.  A lawyers needs to be sure there are no liens on the property or other restrictions. In other words, it’s got to be clear there wont be any legal issues after you sign on the dotted line to buy the home.
  • You need to be careful that you have a clause about selling your current home before you buy anything. Without this all important condition, it’s possible to get involved in a legal battle.

Another clause about what goes and stays in the way of appliances, light fixtures and such is necessary so everyone is on the same page.

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