Property ownershipThe property must be Bank financed housing projects. All legal titles would be in the name of the Bank.
Standard RentThe standard rent is determined competitively.Standard rent is paid in advance annually/bi-Annually.
Promise to SellThe Bank promises to sell the property to the customer at the end of the tenancy period or anytime within the tenancy period based on agreed terms and conditions of sale.
Purchase PriceThis is the price at which the property is offered to the potential home owner in the promise to sell agreement.
Initial Ownership ContributionThis is a one-off payment made as initial ownership contribution towards purchasing the property in future. Initial contribution is set at a percentage of Purchase Price and is put in a Sharia compliant Investment at agreed profit sharing ratio (PSR).
Annual Ownership ContributionThe annual ownership contribution is additional contribution towards home ownership.Annual ownership contribution is paid in advance along with standard rent annually/bi-annually OR as agreed.
Annual ownership contribution is set as a percentage of purchase price and put in a Sharia compliant investment at agreed profit sharing ratio (PSR).
Tenancy PeriodThe tenor of the tenancy contract is set at maximum of 5 years. The customer may elect to buy the property anytime during the tenancy period.
Where the customer chooses not to continue the tenancy before the end of the tenancy period he/she would immediately have access to his accumulated ownership contribution. However, ownership contribution would be paid only after the property has been sold and associated costs duly considered.
DocumentationTenancy Application Form to be completed by customer
Tenancy Agreement to be executed by both parties
Promise to Sell
Other Costs borne by customerHome maintenance and repairs
Utilities and management charges
Cost borne by BankProperty Insurance
Property taxes and land use charges
Major Asset replacement