Islamic Property Financing in Malaysia: Critical Appraisals and Practical Recommendations
Hasroleffendy Hassan

Abstract
Apparently, Islamic Banking and Finance system in Malaysia in particular Islamic Property Financing is one of the most established Islamic Property Financings in the world. However, most of its salient characteristics are almost similar to the conventional property loans whereby most of the significant terms are just changed to Islamic based terms and aqad or contract is executed in order to make a property financing become Islamic. Truly, the issues that must be taken into account not only aqad and terms but they are much more than that. These irregularities exist owing to mismatch of knowledge and experience between the management of Islamic financiers and the Islamic scholars who sit on the Syariah Advisory Board of the Islamic financiers. In this
article, critical appraisals and analysis is executed on the salient features of an Islamic Property Financing namely Syariah Perspectives, Ownership Transfer and Legal Documents, Profit Charged and Installment and lastly Redemption and Early Settlement. Subsequently, practical recommendations to improve the Islamic Property Financing in Malaysia are suggested so as to endeavor for a more comprehensive Islamic Property Financing that is in line with Islamic Syariah regulations which could assist customers to purchase properties yet could still contribute profits to the Islamic financiers/banks.

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