Question :
I plan to purchase an apartment from the Arab Islamic Bank through Murabaha for the price of 30 thousand JDs. However, the Bank stipulated that I pay 20 % of the property value, which I don`t have. Therefore, the owner of the property will pay that sum, which is around 6 thousand, on my behalf provided that I tell the Bank that the value of the property is 36 thousand although its real value is 30 thousand. Is this permissible?
The Answer :
All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.
It isn`t permissible to circumvent Islamic banks and institutions in Murabaha sale (A sales contract where the buyer and seller agree on the markup or "cost-plus" price for the item being sold) through agreeing with the seller (Owner of commodity or apartment) to raise the price to compensate for the lack of liquidity. Such tricks make this transaction closer to the usurious form while Murabaha to the purchase orderer is permissible once its conditions are met. One key condition is that the sale contract between the bank and the owner of the commodity is conducted with complete independence, then an agreement is concluded between the bank and the purchaser or else this transaction becomes a doubtful matter. And Allah The Almighty Knows Best.
