Published 2015
“…Many like Zaki signed up for the BBA — a home financing scheme that had been in existence for more than three decades until it was phased out in 2013 — and only learnt of the perils when they defaulted.Under a BBA scheme, an Islamic deferred payment sale contract, the bank buys the property from the customer pursuant to a property purchase
agreement at the purchase price. The bank then sells the same property back to the customer pursuant to a property sale
agreement for a sale price.In the event of a default, banks often sought from homebuyers the sale price and profit (for the bank) for the entire tenure of the facility, regardless of the amount they disbursed to errant developers and discounting the fact that no house will be delivered to the customer even if the facility was fully repaid. …”
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