Formalism in real estate sales contracts in the Islamic banking system 02/20

Abstract

The Algerian legislator, according to Regulation No. 20/02, which defines banking operations related to Islamic banking and the rules for its practice by banks and financial institutions, as well as Instruction No. 20/03 defining products related to Islamic banking, which specifies the procedures and technical characteristics for their implementation by banks and financial institutions, several operations Financing contributions that you contribute, most notably those that you make in the field of buying real estate in general and housing in particular, then reselling it with collecting a percentage of the interest called the profit margin, or you also buy it in order to rent it until all installments of the rental allowance are met, and then transfer its ownership to the tenant. When we search in the system referred to above, we do not find forms of contracts transferring ownership of real estate except in two forms: Murabaha and Ijarah Muntahia Bittamleek