The ruling on a bank purchasing an item without registering it in its name and then selling it to the one who requested it

Question : Shaykh, the Islamic bank here deals in a way where, if a buyer wants a car or a house, the bank buys that house for that person and then sells it to him at a higher price. But sometimes they do not register this car; this car is not officially registered to save money so that they do not pay registration fees. Is this permissible for such a house?

Answer : My opinion is that it is not permissible, because the reality of this transaction is a loan with interest. The bank did not buy the item except when you requested it, and it did not buy the items except while intending to take an increase from you. This is clear riba (usury or interest) or a clear stratagem to obtain riba. However, some of the brothers among the scholars of knowledge say there is no harm in it, and there is consideration in this. As for if these cars are with the bank from the beginning and a person comes to buy them for more than their price, paying in cash, then there is no harm in that, except if the matter is tawarruq (a commodity sale used to obtain cash), in which case there is scholarly disagreement. Yes.