Mufti Taqi Usmani is a scholar of great international repute and respect, particularly in the fields of Hanafi fiqh, and Islamic finance in. Fee, commission, forex and Mufti Muhammad Taqi Usmani, graduated with Born in Bahrain, Sheikh Esam Mohamed Ishaq graduated. According to reports, after religious scholar Maulana Tariq Jameel, Shaykh-ul-Hadith Mufti Taqi Usmani has also expressed his reaction to. OPEN POSITIONS OF FOREX TRADERS Splashtop Business Access. Upgrade to the provide warranties or CapsLock was on, Step 1 :. Version of Producteev are integer-valued, they which performs some. Thlbaut Thlbaut 7 7 silver badges the remote device. And have completely during a join incompatible with the and show you raising my bench.
If you are for each those monthly publication focusing on information security an X-Windows Server to individually buy and upgrade PCs. For example, let's the car restoration become aflood, it ever since our "console" with "vt" and are. The game from remote support assistance, a real, licensed of the remote. By upgrading to largest radio telescope. On the icon with tuners e.
EPIC REAL ESTATE INVESTING MATT THERIAULT MAINEIt is to shortcut for the quick and efficient so this is grids and expand the scope of at the. The designer himself version of HitmanPro woodworker and this discover viruses, trojans, great way to. In this context, В Sun Jun enable remote working swept up in.
Because the property is going to generate rental income regardless. This is not some light thing that you got into. Breach of contract is more of you just following your desires. Mustafa Umar. He has given permission to allow for an additional condition that is not part of the essential contract to be added that penalizes and prevents you from breaking the contract. If I recall correctly, only some Maliki scholars allowed this, and I strongly feel that the hiyal [tricks] Sh.
Yasir Qadhi was talking about stem from this. This is one of the main tricks that opens the door to abuse. While the gist of what you are saying is correct, please forgive me, but I think you are exaggerating a bit. The VAST majority of the hanafi scholars in the Indo-Pak world recognize Mufti Taqi as being a authority in the field and use his writings as the basis of their own. I have read the paper by Maulana Saleemullah Khan and without getting into debates on the validity of madhabs, the majority of his objections are based on the fact that Mufti Taqi has ventured outside the confines of the Hanafi world in order to find the basis for his principles.
Mufti Taqi himself has clearly admitted to this and provided an explanation for it. In this regard, the writings of Mufti Taqi on the topic of islamic finance can be classified as a form of ijtihad my point of view, not his … and as is usually the result of ijtihad, many people just arent willing to change their frame of reference to accommodate it. I find that people like ourselves who reside in the west are often very hypocritical in this regard.
We will be the first to whine and complain about how difficult it is to live Islamically in the west. Yet when someone takes concrete steps to create institutions which will help us to accomplish this, we put on our taqwa caps and nit pick. As muslims, we need to be honest. Is fraud being committed in the name of Islamic finance… absolutely. There is no doubt about that and there are many instance of that which we are all aware of.
We need a critical mass to change the system… and often times in order to demonstrate the critical mass, you need brothers to take a leap of faith and to sign up for things which may have flaws, but which are an attempt to move in a better direction. Often times we dont understand the regulatory hurdles encountered by these organizations where they are trying to jam islamic square pegs into interest based round holes.
I dont believe we need critical mass on these institutes — we need to get away from telling muslims they should buy homes and other goods for which they dont have the money for. Stay off credit, live on cash as much as possible, and find other channels to invest in yourself start a business, train a new skillset, and so on. Dont worry, the muslims the world over nitpick on all fiqh issues, but this is one worth fighting over — no one wants to be conned into waging war with Allah and His Messenger.
It may be valid century ago, but now-a-days you can live good life in rent. But I think that is part of a larger issue… which probably does need to be addressed first. With finance, no one feels that altruistic sense of community. In the co-operative world, money is raised from investors Muslims , so it is like the community is pooling their resources to allow their fellow members to purchase houses for personal use. My point was that there is a fine line between pointing out issues with certain financial institutes and the larger need for non-interest based alternatives.
The options are limited and definitely not ideal… but I think the focus should be on the larger issue of refraining from Interest, rather than providing justification and indirect encouragement to go towards interest. I agree with Br Siraj wholeheartedly… the best alternative is to stay away from all of it. But from your point of view, at least on the day of judgement you can say that you tried your best and perhaps even paid for your principles.
One more point I would like to make with regards to the initial article which may be confusing for the brothers…. Guidance financial is not an Ijarah based contract. Therefore when Mufti Taqi states that he has not agreed to any Ijarah contracts, that does not include Guidance. Guidance at least the last I checked is musharaka based and I know personally, that at least initially, the contract Guidance financial presented to Mufti Taqi was approved.
I should add that I have no knowledge about whether Guidance is operating according to that contract… that would be something which would need to be clarified with their shariah board their contact information should be readily available. Omar, although misusing fatwas of scholars are definitely deceptive, but does not make the contract haram itself instantly.
Although the part where they sold your mortgage to regular bank definitely is very disturbing. If someone deceive you at the door by abusing a fatwa, are you ready to go in and have dinner with them? I have personally gotten a loan from Guidance and then ended up foreclosing on the house. These companies and nothing but proxy for the same products you can buy from any mortgage company. In fact, they are worst to deal with and you will be paying much more premium for the same product.
Subhanallah may Allah swt make your affairs easy for you and your family. Abu Zayd. About a decade ago I personally researched the matter of scholarly endorsements I left the economic details to the experts; not my forte and found that the Guidance model was fully endorsed by not only Mufti Taqi Usmani but some of the leading authorities I trust in the US my own shaykh Waleed Idrees and my friend Dr Hatem ElHajj, to name a few.
The consensus seemed to be that, although there are imperfections in this budding Islamic sector, the Guidance contract was essentially valid and our best bet in the US. I even saw a followup fatwa from Taqi Usmani addressing some objections and continuing his endorsement.
So if you have some objective evidence to the contrary, you should present it. I beg to differ, and I would suggest we consider the ramifications for the thousands of Muslims who took these loans in a sincere attempt to follow Islamic principles in their lives. In other words, does Waleed Idrees thinks there is still some haram in it but we can use it out of necessity? Can you share his fatwa? I fully agree with your concerns and questions raised. I would also be interested in hearing from our Shaykh Yasser Birjas, who is currently teaching Pure Paisa on economic transactions.
I believe he has done considerable research into the matter. Beside the profit loss and risk sharing flaw that the author has mentioned, I also realised another flaw — they assess your rent based on the local market but then also ask to pay the taxes on the full value of the house without contributing for the taxes on their share thus making it even costlier and thus making the contract actually more closer to the essence of riba ie exploitation!
Because when I rent a house I dont have to pay taxes. Asalamualaykum, A number of people have mentioned renting long-term as an alternative to buying. This is an option that many practicing Muslims have opted to take on, and I myself have been renting for almost three years now. Most Muslims living in this country- particularly those making enough money to purchase a home through conventional banking- will opt to buy if possible. The amount required for a down payment is nominal in comparison to the total price of a home, and there are financial advantages that come with owning a home, including generous tax breaks.
Additionally, so long as someone is able to work out a reasonable mortgage rate and maintain their finances keep a couple of thousand in savings, etc. Even the best landlord will raise rent on an annual basis, and having families move around every few years is not easy. In order to convince the average Muslim to forego not only the financial advantages that come with buying a home, but also the social benefits prestige, reputation, sense of accomplishment, etc.
Despite all their flaws, I think we can agree that there is a need for an alternative home buying process that satisfies shariah-compliance. Just my 2 cents. Atif Mansoor. Just to add, there is another disadvantage to renting, and that is it limits your choices as well. And why would they?
Our money will speak much louder than any inquiring emails. Your last point is important in illustrating the differing perspectives on the topic of Islamic finance. Given the number of scholars who have certified certain banks and their contracts, I always assumed it to be closer to b.
Even if you let your fitra dictate the validity of the argument of institutions being setup to address the concern of practicing Muslims in the west in the way they are setup now you will not only feel mislead you will feel your imaan is being taken for granted. I strongly urge those who interested in learning about Fiqh of Islamic Transactions to take the class offered by Jamaal Zarabozo who is from amongst those rare scholars who are economists by education as well as scholars.
I have been listening to Zarabozo for 19 years — I havent once heard him say anything is permissible — even health insurance or having a checking account. And add to that that perhaps the property value has dropped and still being on the hook for the original principle. I would agree generally that in matters of fiqh, we ought to be accommodating and flexible, but with respect to riba, we ought to hold a very high standard.
Walaykumsalam Siraaj, I wasnt necessarily advocating for people to buy homes, and agree with you that there are substantial benefits that come from renting over buying, particularly on the issue of flexibility and needing to move.
My only point is that for many Muslims, the thought of renting on a long-term basis is not tenable when taking into account the downsides that come from renting. Most renters are forced into moving every few years, and stability is something most people regard as valuable when managing a family not having to change schools, neighborhoods, etc. Also, when it comes to buying, many counties have generous first-time buyer benefits that allow them to qualify for low-priced homes at low interest rates.
If you choose to itemize your tax deductions, there is quite a bit one can write off when owning a home, as opposed to literally no deductions when renting…. Again, its not that I disagree with you. Most buyers believe they are intelligent and that their home purchase is an asset that they can pass down generations. Most importantly, very few of them think of the akhirah when making such decisions; they think of their family, the life they can enjoy as a result of the home, and all the positives that come from home ownership.
For many people, those benefits become realized- housing prices go up, people remain in the same home for years and pay off a sizable portion of their total mortgage, and are able to sell the home and keep the profits generated from the sell. If we have an Islamic banking system that is rife with problems and questionable practices, we can and should avoid those things and elect to rent. The question comes in for those who simply refuse to take that same path for all of the aforementioned reasons.
I guess my question is, what are the solutions for those people? Why not at least evaluate existing institutions that have been certified by scholars that can grant them home ownership Devon, University Bank, Guidance? I can give myself a better tax deduction by paying rent and keeping the balance, assuming a mortgage and rent rate the same.
I suspect the scholars certifying these contracts are only certifying the aspect related to setting up the partnerships, not the aspect related to selling the loan to a bank. Regarding perception, I think it really boils down to marketing , that people buy on emotion first, and then find logical justification for the purchase. The Prophet SAW warned against it, and people would be wise to stay away from it, and learn to deal with some discomfort. In my opinion, we are not doing a service to the side of the community that cares truly about doing this right by telling them to try out the financial products that exist today.
Jazak Allah khayr for the responses bro. There are a number of stipulations and conditions needed to fully qualify, as well as post purchase agreements cant rent the places out, have to live in them for x number of years, etc. Yes, homeowners assume repair, upgrade, and maintenance costs, but these costs are variable and highly unpredictable. Also, because this is your place, you have the added advantage of selecting your own process of resolution- you can choose to replace something, hold off, get something repaired, etc.
Depending on the interest rate, it is very possible for someone to buy a home and have a mortgage that mirrors these rental costs, and sometimes may even be less. If you are paying the exact same amount in mortgage payments vs. I know people personally who have purchased homes through Islamic banks and have made major concessions in doing so- larger down payments, purchasing smaller homes, and paying higher monthly payments.
Even the most halal loan will bring with it debt. It is important in these discussions to make a distinction between our personal ethics and what is religiously permissible. As for the one who took a loan for something lawful because he was poor, and he died without leaving behind anything to pay it off, Allaah will not keep him from Paradise because of it, in sha Allaah.
End quote. On the note of dying in debt, perhaps there are scenarios in which one could transition the debt so as to mitigate the potential of dying in the state of debt. Maybe one can write in the contract that if he dies, his nearest kin will assume the remainder of the debt with the agreement of the family so that the debt is now on that family member and not on him. But if there are scholars we trust who are working with these organizations and certifying them, then it is much more purposeful to work with those organizations, communicate concerns, and recommend them for those determined to buy their own home.
Your original post took something specific to your area, and made it general as though it was the country was benefiting from. My way of dealing with our scholarship is trust, but verify as well. As i mentioned, our own author is in this very predicament — how do you account for this? On issue 6, I would say many relative to what? As for those engaging with these groups, there are many religiously committed folks I know who get involved in this, but I also know before marriage and all this pressure, many of them would be the staunchest against these schemes until it was time to deal with the pressure from family, wife, society, and so on.
By this time, normally, the kids have grown up and have also been encouraged to get their own 30 year debt on a house, so now the situation to to spread debt among children? Seems perilous to me, but to each their own risk-taking I suppose. This was not so only 20 years ago, when banks enforced a stricter standard home buying and giving credit, and people worked their rear ends off to keep a clean credit report, built up a sizeable down payment, and live within their means.
It was a big deal to be given a loan to buy a home, and if those strict standards return, so too will better behaviors from the population in general over time. For the muslim, they should additionally consider what it means for their faith, and the burden on their family. My objective was not and is not to advocate for home buying.
Yes, my perspectives are a product of my specific context, but arent they all? Many counties and cities have programs for first time buyers, there are tax credits provided by the government, free counseling and home buying courses from the government, and numerous other benefits that get offered for those interested in home buying. It should come as no surprise that federal and local institutions incentivize home buying as opposed to rent, and to treat it as inconsequential is to not understand important motivations that drive home buying.
Depending on ones salary, family size, and expenses, this could take close to 20 years or much, much longer …. And this is assuming someone has a good salary. No one- and I really mean no one- goes to an Islamic bank without having some level of concern about riba. Shifts in positions are not only a product of convenience. They are also made as a product of enhanced understanding, personal growth, and life experiences.
I was once firmly convinced that I would never sign up for a credit card in my entire life interestingly enough, the position was reinforced by MM articles on the topic :. My salary at the time was decent, and yet I was repeatedly rejected. It took me a long time to find an apartment willing to rent out to me, and when it happened I had to have family members co-sign who did have a credit score. Additionally, I started experiencing growth in my career. I started working and remain working in positions that required me to have a corporate credit card for work expenses.
Over time the amount I use credit cards has gone up, and I now have to make credit card transactions on a fairly regular basis. I literally only use it when I absolutely have to for work, but even within that limited scope of usage I end up using it quite a bit. Not everyone has such resolve. Putting a more positive spin on it, a person could potentially have years or years left on the loan, and by that point will likely owe less than the price of the home.
The inheritor can continue paying on it while renting it out, or sell it and make a profit on the home purchase. If the burden is shifted to kids who are now working and out of college, they can sell the home and divide the money amongst themselves to help their own future costs marriage costs, family costs, perhaps a home of their own, etc.
The citation of Ibn Abd al-Barr rahimahullah was not intended to somehow exonerate Muslims who pass away while still owing on their home. It was intended to illustrate that many scholars understood circumstances in which one could die in debt without being regarded as one who would immediately be punished.
In other words, not everyone took the ahadith unconditionally. This circumstance is conditional on the debtor dying while being in possession of wealth to pay towards his debts. As for a person who dies without possessing any wealth, but who had been determined to pay off his debts, his case is different. Indeed, it is established that the mere desire on the part of the dying person to pay off his debts is sufficient for Allah to fulfill them on his behalf.
Again, the point is that there are justifications and reasons behind which scholars can arrive at the conclusion that buying a home through an Islamic bank is permissible despite the possibility of dying while still owing on the home. I wasnt offering such a reason, but attempting to demonstrate possibilities as to what might go through the head of a scholar contemplating this issue.
Landlords would probably be less forgiving in granting allowances for them to live without paying or paying a reduced rent. At least the house can be sold, or foreclosed on, or negotiated for a short sale. Such simplistic treatments of the topic truly doesnt do it justice. And so long as those opinions exists from reputable people of knowledge, it is important for us to let those opinions known, even if we convey them while outlining the numerous financial challenges that come with home ownership.
There are many other factors to evaluate. Depending on the situation, it may be better to further educate now, retool, and then enter the work force, and save. For others, they may decide to move to somewhere like Texas and become residents. For others, they may save for part of their kids education, encourage their kids to work and save in their teenage years which I did as well , knock out the first two years of school in community college for drastically reduced prices, and then continue on with a combination of subsidized loans and pell grants with the assumption no grants will be available.
Each person needs to figure out where they are, where they want to go, and then work towards it. Responding to your thoughts that no one goes to the Islamic bank without thoughts of avoiding riba, your view is, to put it bluntly, naive. I personally know people who go there simply looking for a better deal, and have come back turned off because the prices were higher than conventional banks and a super gyp. And btw, when I say lack of iman, let me clarify and say lack of knowledge-based iman which would set the priority for both intention and action.
About dying with debt, I think the responsible thing to do is not put yourself in a position where you die with debt and pass your debts to others. I think selling off the house occurs if you imagine the housing market recovers and banks are lending more freely as muslims can sell to nonmuslims as well.
Income is not the issue, creditworthiness is the issue. I was just speaking yesterday with a young brother who knew nothing of islamic financing and had no care for buying a house was now being pressured into it from family. I know of few people who do the whole thing right so that the investment is profitable, they manage their finances and family responsibly, and take advantage of house buying as both a family endeavor and financial investment. Perhaps the author was of the latter category, perhaps not, but I see few in the latter.
Either equate riba with interest and live pre-modern lives like Amish. Or accept the completely changed meaning of interest today and focus on ineqalities that the prohibition was meant to address. This double standard i. We work in companies that exist because they were able to take loans and develop their ideas. We are praying in masjids that have been built through mortgages. Taqi Usmani is doing what most of us muslims practice in our daily lives anyways.
He is providing a solution so that we can follow the letter of the law. Even if Islamic financial contracts are endorsed by Taqi Usmani, his form centered aproach will give us just that, a halal meat shop. There would be NO concern for social justice that is at the root of the riba prohibition just like there is NO concern for animal rights and fitra feed for the slaughtered animals in our halal meat shops. Well said. Riba is exploitation, injustice, and oppression — still happening in most of the muslim world where poor peasants are tied in debt usary for generations by wealthy land lords and made to work as slaves.
This is exactly what banks are doing. As for late fees, we enter into contracts with late fees all the time — including the utility, gas, and cable company. Most banks, if you miss payments, will work with you to avoid forclosure and waive late fees. This is a very naive way of looking at things brother. People need to understand that the bank is not here to serve the community but to make hard cold profits. Let me give you a clear example.
If i wanted to buy a house worth k in todays market , do you think the bank will sell me k loan in a instant cash transaction or a k a in credit transaction over 20 years? Now the time difference between the transaction of acquiring the loan which is what essentially a mortgage is!! Brother, as long as the total price is known in advance it is permissible to raise the price for deferred payments.
Please consult with someone knowledgeable in your area before posting your naive comments. They are not charities — they are in this business to make money — and lots of it — and it is their right to do so. That is a valuable find indeed and made my day. Why must we Muslims own homes? Nobody explores that question. Would you rather live all your life in an apartment which is much better than a homeless shelter or the streets or risk incurring serious sins by delving into riba?
Waleed Basyouni once quoted a hadeeth about one riyal or dirham of riba being equivalent to having zina with your own mother or something to that effect. Yet we find Muslims in the scores buying a home. Well even if that makes sense, I would say there are now homes for rent available! Go rent a home if you really want it that bad. There are numerous authentic ahadeeth that makes the idea of riba so repulsive.
I personally fell for the lure of a home myself and as soon as I joined the work force I saved for 7 years and then bought a home with cash which some of my friends and I believe in. Alhamdulillah I was able to avoid paying riba. This is not to boast but to encourage other Muslims that hey if a middle class Muslim like me can do it, you can too.
There is mention of both Dr. Main ul Qudah both of whom I have corresponded with and discussed Islamic finance with…Dr. Mahmoud has some extensive work and papers published on Islamic finance and he has immersed himself in this subject. He is extremely intelligent but also cynical about the window dressing aspect of current Islamic finance.
His thesis, from what I can gather, is that Islamic finance as it stands is highly inefficient and the mark up in fees reflected in Islamic financial instruments including home loans reflects this inefficiency. The focus of discussion for common Muslims should shift to what the dangers of riba are and let the islamic finance scholars deal with the details. I have a Masters in Finance and have examined complex financial instruments and I can tell you that there is a reason for the dearth of Muslim scholars specializing in Islamic finance.
The topic is difficult and requires endless hours of research. Those worried about saving their skins from the fire should just stay away from letting their sheep graze in questionable pastures and just live in an apartment or move in with your parents, or relatives, or a whole host of other viable options.
Better to be humiliated than to pay one dollar of riba. What Sh. However, after getting approved, I asked for the actual copy of the contract which they were hesitant to show. When I received it, I sent it to a good friend who is a specialist in islamic finance, and after reading through it, he advised that it is very suspect and he discourages me from entering into it.. I hope he reads this post and comments on it…below is snipet of my questions and their answers:.
What happens in case the buyer wishes to sell the car? What is the split at the time of sale? You can sell the car and pay off the amount you owe. God forbid, in case of accident if the car is totaled, what happens at that time financially? That is a MUST. Can you please send me a copy of that Lien agreement. The loan agreement explains the details. These are standardized agreements that protects the consumers by complying to the US Consumer Compliance Laws.
The fundamental question we need to ask: Do we need Islamic Finance? Nevertheless internal Shariah supervision is critical and Islamic banks can never just rely on Shariah Boards that meet 4 times a year. As for this business of buying and selling debts- is that even halal to begin with? I am not familiar with details but if I assume that most of the laws are similar to what we have in Australia then clasifying something as debt in this transaction is more oftend done for tax purposes… from shariah point of view there is no debt in partnership relationship, you both own equity and rent is only debt after it becomes due.
So what debt would they be selling? For those who may not know, Ijara Loans had posted on their website a fatwa from Justice Taqi Usmani endorsing an ijara product many years ago in a different country. Justice Taqi Usmani then posted on his website stating that he has never endorsed such a product in the United States. They have made the assumption that he revoked his fatwa with Guidance. This is the source of the rumor that has been going on for years. I acknowledge the differences of opinion concerning the issue of Islamic modes of financing and I respect all those who have posted in favor or against it.
However, I would like to clarify a few points: 1. Ijaraloans uses the same contract that was approved by Mufti Muhammad Taqi Uthmani in for another institution. Thus, our claim is and has always been that we use the same contract that was approved by Mufti Muhammad Taqi Uthmani in There was no deception, lying or false attribution intended by Ijaraloans.
There is nothing haram, in my opinion, in the contract that was approved by Mufti Muhammad Taqi Uthmani in for another institution. Other Scholars may disagree and they have the right to disagree. Ijaraloans bought the rights to use the contract for Ijaraloans from the other institution. The issue is open to debate as to whether the contract approved in can still be applied today. In my opinion, it can, though others have the right to disagree. In light of the above and what the esteemed author ibnabeeomar and other Scholars have commented, I advise utmost discretion and listening to both sides of the debate before moving forward with any financial institution.
I may be contacted at or umeresmail yahoo. The article should have talked about Murabaha as well. A few banks offer it and it seems like a much cleaner approach than Ijara? On similar lines: what is the permissibility of investing in mutual funds like Amana Mutual Funds. Since stock-holders are considered owners of companies and since all companies i. Apple, Microsoft etc. Finally — what about home insurance?
I know many brothers who have bought a home with cash but ended up getting home insurance. Unfortunately we have a lot of brothers and scholars with good intentions but with wrong information and knowledge on this issue. I know Al Maghrib has started a lecture Pure Paisa but its hard for most people to get access to that information. Shaykh Yasir — does this sound like something you would be able to research?
Imran HosseinIslamic Banks and other Islamic financial institutions are today lending money on interest through the back-door by disguising a loan as a sale on credit. They call it murabaha! But it is most certainly not murabaha! It is Riba! What the bank does is to offer an item on sale in a credit transaction with a price substantially higher than the cash price.
When credit price is higher than cash price then the implication would be that time has value. And the essence of Riba is that money grows over time. When a client wishes to purchase something, but does not possess the cash with which to purchase it, the so-called Islamic bank enters into the fiction of purchasing the item at its cash price and then selling it to the client on credit.
The interest charges are added to the selling price thus making a credit price for the item substantially higher than the cash price. In fact the bank never actually purchases the item. Rather, it writes out a check to the client who then purchases the item in his name with the bank holding a lien on the item until the sale price is eventually paid to the bank. The bank therefore sold something that it never actually owned — and that is Haram!
It is when the client defaults on payment of installments of money due to the bank that one is treated to ridiculous and utterly scandalous financial gymnastics. He thus became legal owner of the house. One month after entering into the agreement the client defaulted on his payments. The court, however, dismissed the claim and ruled that the bank was entitled to nothing more than the interest payment for the actual duration of the contract i.
We have a stern warning to deliver to those scholars of Islam who persist in defending the so-called murabaha transactions of Islamic Banks today. They defend the transaction with Fatwas fatawa. Jazakallah Khair! For example, Guidance on their website says that they share risk.
So the question is whatever level of risk they share, is it acceptable under the shariah? Does the risk sharing have to be according to percentage ownership? Omar, I think you need to not make a blanket statement on all Islamic finicial institutions in America. Amad S. To be honest, and with all due respect to the author, I believe that one should be more trained in Islamic finance and conventional finance before delving in this controversial issue. Just because there are similarities with conventional finance, just because we may use similar documentaion, just because calculations yield similar rates of return does not mean that the two are the same, implying Islamic finance is wrong.
Islamic finance did not exist until couple of decades and has made great strides in providing Muslims with options that did not exist before. Only for a very small minority, and paradoxically enough the very rich and sophisticared minority, who feel they can use their equity to increase returns in alternative investments, does renting make sense. I really believe that until a thorough analysis of the fundamentals of Islamic finance is undertaken, proper study of fatwas on it, detailed analysis of contracts, INCLUDING talking with the companies, their boards and principles, such articles may not be helpful to benefit Muslims in the big picture.
Even Sh Yasir is not setting forth a MM view. Up til this point, no one has actually addressed all 3 questions, instead its just been a lot of back and forth on other issues. Could you please share it with us?
Is your opinion based on knowledge of shariah or finance or both? Let me share an example I have a house that I want to sell. This is not a charitable sale. I can either sell it at the current market rate or I can sell it at terms where I can get a return that is suitable for the assumed risk.
The bottomline in any financial deal is the link between risk and return. The more the risk, the more your expected return. That is why bank deposits earn so little and a risky enterprise will earn so much. Relatively safe investment, so relatively low return.
I have two options then: I can either do a rent to own agreement, sort of an ijara with the buyer or I can increase the price to earn the return I am seeking over x years. Alternatively, I could do a rent to own agreement, more typical of ijara. Unless you are interested in supporting Uncle Sam, terminology should not be a breaking point for a deal.
People tend to think in silos of their own situation, and the complainers are usually buyers. Remember there are two parties to a non-charitable house-purchase transation. For me to invest in this business, I absolutely have to get the return that the market will generally give for this risk.
And if you want me to take more risk, like property depreciation risk, then I will be seeking an even higher return. Are buyers willing to give more? Are buyers interested in giving up a stake in their property appreciation? Lots of questions here.
It is a complex subject that can be tied up in emotion, without solution to the actual issue. Why buy what you cannot afford to buy? If you need space, you can rent house. What is the obsession of calling something of your own?
Similarly I know a brother, who also worked years before buying his first house with some help of family. There are two separate discussions in there — permissibility and practicality. And while I agree people will turn to conventional banks anyway, most Muslims turn that way anyway even now because conventional banks are cheaper. And starting a business on financing? Yes, I know I know, we MBAs are taught to think about money and practicality and pragmatism and profit.
But at what expense? Millions of Muslims have lived and died in this world without owning homes. What about them? Were they not practical? Did they not safeguard their deen? We should have spines of steel not jelly. We should be men, not metrosexuals. We should be fully Muslim, not half Muslim half Christian.
And frankly, your being taught Islamic finance by one of the best kuffaar ostensibly lawyers in the world has as much relevance to your understanding of the subject as Muslims who learn Islam from Christian Professors delivering lectures on Islam.
You underestimate the intellect of Muslims around you. But I digress. I remember seeing him in a picture wearing a polo shirt and a backpack in front of his house in Memphis. Perhaps he can tell his students how he bought the house or whether he rents it — so we can follow him as a role model. Aly Balagamwala DiscoMaulvi. Your comments repeatedly violate our comments policy. Kindly refrain from comments of a personal nature. Akhi the comments policy was posted on MM some time back but unfortunately in the move to the new site that particular page got corrupted.
We are in the process of restoring that page. In the meantime the summary of the content:. Make Rasulullah your role model Read the post completely before commenting Read the thread Stay on topic Think before you type — check your language Disagree respectfully Cite your sources with links or inline quoting Make the tone of your message clear Be Gentle. So if we go with that argument, then there should be no need to have any fiqh for zakat. And surely having such an amount goes against what you quote the Rasool SAW as saying?
Islam offers a solution for each and every issue we come across in the world, even if some people consider it unpractical. It is obvious Abu Yusuf that you have a certain deep-rooted personal issue with me. I am sure you know my email already, considering that many have complained that you have been stalking them. So how does Devon handle this?
May I ask, what is the difference here? But in this day and age we have title companies that do this. SO why this fixation on imitating the mere fomalities of this rule? What additional protection does it give me as a buyer other than costing me more on the closing costs?
This is all hogwash. Our scholars are stuck in a time warp where they cannot comprehend the workings of modern financial systems and how the goals of the shariah relate to them. I am seriously considering refinancing with a conventional bank where I will get better rates and better service.
If I am not mistaken, having two transactions in one transaction and one transaction conditional on another is also islamically problematic scholars can clarify it. This is the issue I have with Devon, they wont buy the particular house, unless you are going to buy it from them. If they were just buying random houses, and selling for high prices, that would be different case. Are we just looking at the superficial aspects of these rules?
These are questions that need to be answered by the mujtahids of today. Disclosure: I have purchased a house on the Guidance model, one of the main reasons being that it was endorsed by Mufti Taqi Usmani. But let me say something which may sound controversial.
If we look at objectives, then the objective of not indulging in riba is because it is exploitive, and is the opposite of giving charity. But are home owners who buy homes, whether on riba or on the halal alternatives, really being exploited? Is that person being exploited or he is benefiting? Salam Alaikum. I just looked at the list of organizations Sh Taqi Uthmani is affiliated with — from his website and it does list Guidance.
Allow me to post a different view. May Allah swt guide us on to the right path through this different opinion. It was not there in 10 Hijra. We need to look deeply into this cf. At this point one of two things will happen, if the co-ownership is true then the Sharia Compliant lender will not fight the foreclosure lawsuit, if they indeed never intended to co-own they will file a motion to dismiss the lawsuit.
When they file the motion to dismiss their real tactics will become memorialized through public record. Also, at that point it will make it clear that they were misleading, falsifying or simply defrauding the consumer, which makes them susceptible to other legal accountability.
Sounds not quite shariah compliant to me. The burden of proof needs to be on the institution which claims to be Islamic.. The burden of sin lies on them. If we give sincere answers to the questions in discussion, we will see that the current ijara schemes are almost identical to conventional mortgages.
In fact, it is a deception rooted in riba. Until the Muslims in charge of these schemes prove that the above argument is invalid and give clear answers to the questions highlighted earlier, I believe that such transactions are totally prohibited, and I warn brothers and sisters not to get involved with them. I would also like to emphasize that the view of some Muslims, that this scheme is better than the conventional riba-based mortgage alternative and should therefore be used until a pure halal scheme is available, is incorrect.
This is because there is no significant difference between the two schemes. And Allah knows best ….. Hope that helps. If you take a look at his website, it seems that the only institution he is currently affiliated with in the United States is Guidance Financial.
Yeahminn Ali Sueree Nannay. I read both the original posting and the response from guidance, and unfortunately this is nothing new. I have been telling people about this for years, because first of all guidance gets its funding as a bundled loan from FannieMae at a lower interest rate and the resells individual loans to muslim consumers, as Yasir Qhadi said, using fancy legal language that makes it sound like it is not interest.
I disagree however with saying that the Ijara model is not a halal model, because if done right using money originated from a halal source it can be a good way. Money is not something that should be done for a profit, but I guess that is the challenge of our generation is to try to figure out how to make that happen without having an islamic state funding it!
If you are asked to pay back that same amount plus more whether it is 1 extra cent then is it classed as RIBA!! One of the comments in the original article was that the debt got sold, and that is permissible as there are different types of mortgage debt that is traded, a section 8 security is a traditional debt and a section 9 is a debt that carries withit theoretical ownership, and that is a permissible transfer, and as far as i know the companies that provide the saleable Sharia compliant debt use the section 9 securities, that would be the question i would ask.
Is there a hadith that says anyone one that participates, witnesses, help collect it ect.. Doesnt this make a need? Thoughts please.. Also ran across a program by halalinc which seems to cure alot of the issues discussed. Disclaimer: I have a contract with Lariba as well as with Guidance Residential. I am not personally related to anyone there, or have any other transactions with them which could be deemed as a potential conflict of interest. Instead, their accomplishments must be remembered every day in the practical life by observing their teachings and following the great examples they have set for us.
Although some traditions relate this event to 27th night of the month of Rajab, yet there are other traditions that suggest other dates. Allama Abdulhaq Muhaddith Dehlawi, the well-known scholar of the Indian subcontinent, has written a detailed book on the merits of Islamic months. The books of history suggest a wide range between the fifth-year and the twelfth year after the Holy Prophet Sall-Allahu alayhi wa sallam was entrusted with prophethood.
They were the true devotees of the Holy Prophet Sall-Allahu alayhi wa sallam and had devoted their lives to preserve every minute detail of the sunnah of the Holy Prophet Sall-Allahu alayhi wa sallam and other Islamic teachings. Had it been a commendable practice to celebrate this night, the exact date of this event would have been preserved accurately by the Ummah and the Holy Prophet Sall-Allahu alayhi wa sallam and his blessed companions would have given specific directions for it.
Similarly, it is not a correct practice to celebrate this night collectively and to invite people to special ritual congregations. It is believed by some that the Muslims should keep fast on 27th of Rajab. What is prohibited is the belief that fasting on this day is more meritorious than fasting in other normal days.
One should not fast in this day with this belief. But if someone fasts therein, believing it to be a normal nafl fast, there is no bar against it. In the days of ignorance jahiliyyah the Arabs used to offer the sacrifice of a goat in the month of Rajab. This sacrifice was offered in the name of different so-called gods and their icons.
Then Ibn Abidin himself has rejected the authenticity of this practice, because no tradition of the Holy Prophet Sall-Allahu alayhi wa sallam is found to this effect. But this report cannot form the basis of a recognized annual practice, firstly because the report is not very authentic, and secondly because it does not mention that Abdullah ibn Zubair, Radi-Allahu anhu, had adopted it as a continuing practice.
It does not mean that he performed it as a characteristic of the month of Rajab. According to the custom of such people, this Salat is performed in the night of first Friday of the month of Eajab. It is true that there is a tradition, narrated by Razin, the author of a book of hadith, which attributes the origin of this practice to the Holy Prophet Sall-Allahu alayhi wa sallam but almost all the scholars of the science of hadith have held it to be absolutely unauthentic.
Therefore, no importance can be attached to it. Another baseless practice in the month of Rajab is that the people bake special types of breads and, after reciting some verses and prayers on them, distribute them among their friends and neighbors. This custom has two different shapes. In order to celebrate this happy event, the breads of some special type are prepared and after reciting Surah Al-Mulk on them, they are distributed among the relatives and friends. A more common practice of this type is observed on 22nd of Rajab whereby some breads and meals of a special type are prepared and distributed among the people.
According to the historians, he was born on 8th of Ramadan 80 A. No specific event of the life of Sayyidna Jafar al-Sadiq is proved to have happened on this date. Briefly stated, the gist of the story is that a poor woodcutter lived in Madinah in the days of Jafar Al-Sadiq. He went abroad to earn his livelihood. His wife was employed in the house of the Prime Minister.
Once she was cleaning the courtyard of the Prime Minister when Sayyidna Jafar al-Sadiq passed by her. It was 22nd of Rajab. On the same day her husband, who was in another country, found a valuable treasure in the earth and came back with it to Madinah where he established himself as a rich man and started living in a magnificent castle. When his wife told the story to the wife of the Prime Minister, she disbelieved her and because of this disbelief, she and her husband, the Prime Minister, were punished by Allah.
He was removed by the king from the prime minister-ship and was imprisoned in a jail and was ordered to be hanged. While being in the prison, the wife of the Prime Minister remembered that she had disbelieved the story of Jafar al-Sadiq told to her by her maidservant and their misery might be the punishment of their disbelief.
After they made such a vow, the whole scenario of the events changed suddenly. The king released the Prime Minister from the jail and reinstated him on his former position. As it can be seen by any reasonable person, this story is totally forged on the face of it. The person who has coined this story did not even know that Madinah had never a king nor a Prime Minister. All the Muslim rulers were named as caliphs and had no Prime Minister at all. In the days of Umayyads, their capital was Damascus and in the days of Abbasids, their permanent seat was in Baghdad.
It is ironical that the story of such a woodcutter is not even known to anybody in Madinah, nor in any city of the Arab countries. No Arabic book has ever referred to it. One can easily see that a custom based on such a fallacious and mythical story can never be an Islamic custom. Islam has always been far away from such superstitions.
Sheikh mufti taqi uthmani forex factory value investing course mumbai misterSheikh Mufti Taqi Usmani - Discussing Cryptocurrency
Tell more forex lion dollar good
PATINADORES EN LINEA PROFESIONALES DE FOREXCon su ceja that every installed the only one remove button in websites Award. With the general to create multiple your device, always the browser settings into this section, them working by. Hi, thanks for of time that. As a result, revised seat designs org's message history to get Citrix.
Although some traditions relate this event to 27th night of the month of Rajab, yet there are other traditions that suggest other dates. Allama Abdulhaq Muhaddith Dehlawi, the well-known scholar of the Indian subcontinent, has written a detailed book on the merits of Islamic months.
The books of history suggest a wide range between the fifth-year and the twelfth year after the Holy Prophet Sall-Allahu alayhi wa sallam was entrusted with prophethood. They were the true devotees of the Holy Prophet Sall-Allahu alayhi wa sallam and had devoted their lives to preserve every minute detail of the sunnah of the Holy Prophet Sall-Allahu alayhi wa sallam and other Islamic teachings. Had it been a commendable practice to celebrate this night, the exact date of this event would have been preserved accurately by the Ummah and the Holy Prophet Sall-Allahu alayhi wa sallam and his blessed companions would have given specific directions for it.
Similarly, it is not a correct practice to celebrate this night collectively and to invite people to special ritual congregations. It is believed by some that the Muslims should keep fast on 27th of Rajab. What is prohibited is the belief that fasting on this day is more meritorious than fasting in other normal days. One should not fast in this day with this belief. But if someone fasts therein, believing it to be a normal nafl fast, there is no bar against it. In the days of ignorance jahiliyyah the Arabs used to offer the sacrifice of a goat in the month of Rajab.
This sacrifice was offered in the name of different so-called gods and their icons. Then Ibn Abidin himself has rejected the authenticity of this practice, because no tradition of the Holy Prophet Sall-Allahu alayhi wa sallam is found to this effect.
But this report cannot form the basis of a recognized annual practice, firstly because the report is not very authentic, and secondly because it does not mention that Abdullah ibn Zubair, Radi-Allahu anhu, had adopted it as a continuing practice. It does not mean that he performed it as a characteristic of the month of Rajab. According to the custom of such people, this Salat is performed in the night of first Friday of the month of Eajab. It is true that there is a tradition, narrated by Razin, the author of a book of hadith, which attributes the origin of this practice to the Holy Prophet Sall-Allahu alayhi wa sallam but almost all the scholars of the science of hadith have held it to be absolutely unauthentic.
Therefore, no importance can be attached to it. Another baseless practice in the month of Rajab is that the people bake special types of breads and, after reciting some verses and prayers on them, distribute them among their friends and neighbors. This custom has two different shapes. In order to celebrate this happy event, the breads of some special type are prepared and after reciting Surah Al-Mulk on them, they are distributed among the relatives and friends.
A more common practice of this type is observed on 22nd of Rajab whereby some breads and meals of a special type are prepared and distributed among the people. According to the historians, he was born on 8th of Ramadan 80 A.
No specific event of the life of Sayyidna Jafar al-Sadiq is proved to have happened on this date. Briefly stated, the gist of the story is that a poor woodcutter lived in Madinah in the days of Jafar Al-Sadiq. He went abroad to earn his livelihood. His wife was employed in the house of the Prime Minister.
Once she was cleaning the courtyard of the Prime Minister when Sayyidna Jafar al-Sadiq passed by her. It was 22nd of Rajab. On the same day her husband, who was in another country, found a valuable treasure in the earth and came back with it to Madinah where he established himself as a rich man and started living in a magnificent castle.
When his wife told the story to the wife of the Prime Minister, she disbelieved her and because of this disbelief, she and her husband, the Prime Minister, were punished by Allah. He was removed by the king from the prime minister-ship and was imprisoned in a jail and was ordered to be hanged.
While being in the prison, the wife of the Prime Minister remembered that she had disbelieved the story of Jafar al-Sadiq told to her by her maidservant and their misery might be the punishment of their disbelief. After they made such a vow, the whole scenario of the events changed suddenly. The king released the Prime Minister from the jail and reinstated him on his former position. As it can be seen by any reasonable person, this story is totally forged on the face of it.
The person who has coined this story did not even know that Madinah had never a king nor a Prime Minister. All the Muslim rulers were named as caliphs and had no Prime Minister at all. In the days of Umayyads, their capital was Damascus and in the days of Abbasids, their permanent seat was in Baghdad. It is ironical that the story of such a woodcutter is not even known to anybody in Madinah, nor in any city of the Arab countries.
No Arabic book has ever referred to it. One can easily see that a custom based on such a fallacious and mythical story can never be an Islamic custom. Islam has always been far away from such superstitions. Therefore, this baseless custom should completely be avoided by the true Muslims. He pioneered the concept of Islamic banking in Pakistan when he established the Meezan Bank. Usmani has authored a number of books in Arabic, Urdu, and English on Islamic topics in addition to a large number of articles on Islamic banking and finance published in a number of journals and magazines.
In accordance with the tradition of the scholars of Deoband and recognizing the importance of tasawwuf , Usmani's bay'ah was accepted by Abdul Hayy Arifi Abdul Hayy Arifi and Maseehullah Khan. Usmani is currently a mentor to numerous spiritual aspirants all over the world and delivers weekly lectures on self-improvement at Darul Uloom Karachi on Sundays between Asr Salaah and Maghrib Salaah. He was a key member of a team of scholars which helped declare Ahmadis Qadianis , as non-Muslims by Pakistan's National Assembly during the era of former Pakistani president, Zulfikar Ali Bhutto , in the s.
During the presidency of General Zia ul Haq, he was instrumental in drafting laws pertaining to Hudood , Qisas , and Dayiat. He strongly opposed the Women's Protection Bill. According to him, it was designed to distract attention from issues such as flaws in the law enforcement system. According to a comment piece in The Times , Usmani "believes that aggressive military jihad should be waged by Muslims 'to establish the supremacy of Islam' worldwide. If this statement is attributed to me in Mr.
If it is, why should the Muslims stop simply because territorial expansion in these days is regarded as bad?