We had sent you the contractual information for Guidance Finance which you informed , that apparently it is Halal but we need to make sure that it is implemented according as well. Therefore, we asked for a checklist of things that we could investigate at the time of implementation. In other words, we would need to know what to look out for. Could you please very kindly provide us with such a checklist so that we could go ahead and start the transaction with Guidance House Financing, USA? Jazakullah Khair.
In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatoh
Guidance House Financing product is a diminishing Musharakah product that have two base elements in it, owenership (Bai) and Ijarah (hiring).
In principal, it is not permissible to contract two deals in one. In simple terms, one deal cannot be a condition of the other. In this context, one cannot conclude the deal only if the partner legally accepts to hire the property. The partner may make a promise which is only morally binding on him. Once a person purchases a share of the property, now he can hire it. From a practical point of view, this should not be a problem as generally a person will most certainly hire the purchased property as he intends to finally own it. The above procedure is to ensure that two deals are not done at once and simultaneously. They should be separate and independent.
And Allah knows best
Wassalam
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In’aamiyyah