The best way for murabahah according to shariah is

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The best way for murabahah, according to Shariah, is that the financier himself purchases the commodity and keeps it in his own possession. Or purchases the commodity through a third person appointed by him as agent, before he sells it to the customer. Where direct purchase from the supplier is not practicable it is also allowed that he makes the customer himself his agent to buy the commodity on his behalf. 13 Murabahah
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Murabahah Financing - Step 1 The client and the institution sign an over-all agreement the institution promises to sell and the client promises to buy the commodities from time to time on an agreed ratio of profit added to the cost. This agreement may specify the limit upto which the facility may be availed. 14 Murabahah
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Murabahah Financing - Step 2 When a specific commodity is required by the customer, the institution appoints the client as his agent for purchasing the commodity on its behalf, and an agency agreement is signed by both the parties. 15 Murabahah
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Murabahah Financing - Step 3, 4 & 5 The client purchases the commodity on behalf of the institution and takes its possession as an agent of the institution. The client informs the institution that he has purchased the commodity on his behalf, and at the same time, makes an offer to purchase it from the institution. The institution accepts the offer and the sale is concluded whereby the ownership as well as the risk of the commodity is transferred to the client. 16 Murabahah
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Murabahah Financing - Precaution It is also a necessary condition for the validity of murabahah that the commodity is purchased from a third party . The purchase of the commodity from the client himself on 'buy back' agreement is not allowed in Shariah. Murabahah based on 'buy back' agreement is nothing more than an interest based transaction. 17 Murabahah
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