Business and Dealings

Home Financing through an Islamic Bank

Q: Our community bank offers Shari’ah compliant home financing which is structured as follows:

1) The Muslim buyer will select the property and the bank will purchase it with a contract for immediate resale to the Muslim purchaser for a fixed amount that will include the bank’s profit.

2) The Muslim buyer will be given a fixed price that will not vary with interest rates.

3) The Muslim buyer will have to sign a contract to buy the house from the bank before the bank purchases the property from the original seller.

4) The bank states that they will take a loan on which they pay interest from a secondary source to finance such a purchase. 

5) The bank states that the buyer will have to insure the property.

Is this form of finance permissible and Shari’ah compliant?

Reprimanding an employee for passing on wrong information

Q: We have a company and an employee went on vacation. Upon his Return, before coming back to the office, he met another employee who told Him that he has been fired. This was incorrect information and hence the Employee (who returned from vacation) didn't show up to the office yet. We are investigating this further to validate if the second employee did or did not pass on the false message of being fired. If this turns out to be true, what should be our action on it?

Partnership

Q: I have a shop in Karachi. A friend of mine has opened a business in the shop. I did not agree to sharing the profit but agreed that he pays a nominal rent until the shop goes in profit. He is paying is this nominal rent. But he keeps saying that we should agree on some deal that relates to the profit in the business. A suggestion is that instead of 'ijareh I become a partner in business. Can I consider the shop as investment from my side equal to the market price of the shop? He also has invested in the shop. So is it jaíz if we make a deal that 60% of the total profit will be for his efforts paid to him and the remaining 40% will be divided based on the investment of each of us?