Salam istisna istisna for house financing if the

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Salam & Istisna
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Istisna for House Financing If the client has his own land and he seeks financing for the construction of a house, the financier may undertake to construct the house at that open land, on the basis of Istisna. If the client has no land and wants to purchase the land also, the financier may undertake to provide him a constructed house on a specified piece of land. The payment of installments by the client may start right from the day when the contract of Istisna is signed and may continue during the construction of the house and after it is handed over to the client. Salam & Istisna
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Istisna for House Financing by Developers In order to secure the payment of the installments, the title deeds of the house or land, or any other property of the client may be kept by the financier as a security, until the last installment is paid by the client. The financier, in this case, will be responsible for the construction of the house in full conformity with the specifications detailed in the agreement. In the case of any discrepancy, the financier will undertake such alteration at his own cost. Salam & Istisna
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Problems ! Our Islamic Banks are full of BBAs, MBAs and CAs who have no idea what we are talking about. The yuppies are still to be born in the real life where commodities are traded and houses are built. The only thing they are good at is making and delivering presentations, calculating IRRs and doing financial modeling. Islamic Banks (Islamic Financial Institutions) have yet to start the “real” Islamic Financing as yet. Salam & Istisna
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