Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

What are the issues in musharakah mutanaqisah home financing?

user-image
Question added by Ahmed Hassan Hadi , Teller , Amal Express
Date Posted: 2015/08/25
Najwa Ab Patah, CPA
by Najwa Ab Patah, CPA , Regulatory Compliance, Risk Management, Islamic Banking , Central Bank of Malaysia

One of it is the promise by the customer to purchase the financier’s portion – if the customer fails to fulfil his/her obligation to purchase the financier’s portion at any point of the financing tenure, the financier may take legal action against the customer. Nevertheless, the enforceability of the unilateral promise by the customer is always questionable.