Continuation of the discussion on purchasing a car through an Islamic bank.

The Shaykh : I am going to tell you what I understood. May Allah forbid, I want to buy a car. I go to the company, choose the type I want, and agree with the agent and the bank. The bank tells me, "Go ahead, take the car from the company, and we will pay you the price." This is, of course, what they call murabahah. This is the picture I understood before. Be patient, for now we are asking the person with knowledge: is what the brother mentioned the reality?

The questioner : Certainly. They sign the contracts and the bills of exchange, and then he goes and brings a quotation from the party he wants to buy from. For example, this recorder, he wants to buy this recorder from Sanyo Company. He brings a quotation for the recorder in the name of the Islamic bank. The bank agrees to buy it. When they sign the contracts and the bills of exchange, an employee from the bank goes to receive the device and delivers it to the one who ordered the purchase.

The Shaykh : Look, the operation is that the bank agreed to the purchase.

Another questioner : Yes, but may Allah have mercy on you. The bank, now we go to the administration together. We tell the administration, "We want to buy a car." They ask, "Did you find the car?" We say, "We found the car."

The Shaykh : Yes.

Another questioner : The bank holds me and makes me sign the contract and the bills of exchange before he goes out with me. The bank obliges me to the purchase.

The questioner : These are just wrong practices on the part of the employees, excuse me. Let me tell you the reality. I am one of the founders of the bank, and it has been eleven years. The practical reality is that the employee is supposed to inspect the car and take a written offer from its owner regarding the price and its type.

Another questioner : Fine. They make him sign the bills of exchange first. The Islamic bank's transaction is exactly that: they make him sign the bills of exchange first, then the bank buys it and registers it in the bank's name. After that, it registers it in the bank's name initially, then registers it in your name.

The questioner : Correct.

Another questioner : First, the bank must have signed it.

The questioner : An agreement must have been made with the original owner of the car, and there must have been an offer and acceptance from both sides.

Another questioner : My professor, I want to buy a car from...The Shaykh : What do you do? The first thing in the transaction is that they make me sign a bill of exchange?

The questioner : No, the first thing is that I take a written offer from...The Shaykh .

Another questioner : Leave me alone with that. That does not advance or delay the contract. Okay, may Allah have mercy on you... Now I will bring you this written offer. What do you do?

The questioner : I am supposed to inspect the car, that is what the instructions say.

Another questioner : You inspected it and did it. On what basis do they make you sign? Is the car in your possession?

The questioner : Of course, I agreed with him. I agreed with him to buy it.

The Shaykh : Be patient. Before anything else, does the bank agree with the buyer that it sold him the car?

The questioner : Yes, the first thing is that he brings an offer from the seller. If the offer pleases the bank...

The Shaykh : We are listening from here.

Another questioner : Let me explain to you. The bank enters into the substance of the matter, so it moves away from speculation. It does not move away, but it reduces the system from musharakah to murabahah because it is safer. It enters into the sale of a guaranteed item. You understand this concept as follows: suppose the bank imports goods for me from abroad...

The Shaykh : No, no, let us stick to the picture here. I want to take a car from the company...?

Another questioner : Okay, what is the bank's role if I cancel the sale at any moment?

The questioner : The bank exits. It has no role.

The questioner : It has no role, meaning I get entangled with the company. If any goods, even if I imported them or bought them from here and something happens, the one entangled is the buyer...

The questioner : Now we have not reached anything. Now I go to the banking facilities department at the Islamic bank and say, "I want to buy a car." He says, "Give me a written offer." I bring an offer for this bank. When I come to the Islamic bank, it says, "Bring me a guarantor." So I bring a guarantor, and he makes me sign the bills of exchange with my guarantor. After that, the Islamic bank registers it in its name. After it registers it in its name, it transfers it to my name, my brother. This is the existing picture...

The questioner : This is correct. The bank guarantees the final buyer before entering into the operation and obliges him to everything, then it enters into the transaction.

Another questioner : And the bank sells something it does not own.

The questioner : And I prove that it does not sell. The car is inspected, but if I buy from me something clear, for example, a box of oil or any known item, this is a known item. Does the man go to inspect it? No, he is content with the invoice.

The questioner : Yes, he is content with the quotation invoice.

Another questioner : Or he is content with the offer that you bring, yes. Not everything is inspected. There are known goods that he does not go to inspect.

The Shaykh : So if it is true here that there is a sale of something he does not own, is that correct?

The questioner : This is correct.

Another questioner : Correct. And do not sell what you do not have.

The Shaykh : Be patient a little. What is the bank's answer to this operation?

The questioner : Local sales do not involve damage to the goods because they are received and delivered immediately. As for sales from imports from abroad, the goods may be damaged, and the bank bears that.

The Shaykh : No, no, let us stick to this picture. What is the bank's answer, now that you have admitted that this is a sale of something the bank does not own?

The questioner : The practical reality is that we do not own it...

The Shaykh : Never mind. What is the bank's answer? Does it say, "This is an Islamic transaction"? What is its answer, knowing that the Messenger of Allah (peace and blessings be upon him) said: ?

The questioner : Regarding the sale of murabahah, the one who orders the purchase...

The Shaykh : My brother, leave me alone with these terms.