Someone told me that the papers one signs to apply for and process a purchase with a mortgage alternative are the same as in the traditional mortgage system, why?
SHAPE™: The documents that one signs, which should normally be customized to reflect the facts of a mortgage alternative, including the application, disclosures, and post closing disclosure documents are mostly governed by federal and state rules. In fact, UIFC has gone to great expense to modify its documents to reflect correctly the Islamic transaction in compliance with applicable law. Generally, the government wishes to assure that you are fully aware of the details of a transaction and can compare it to other transactions of a similar nature. Islamic scholars now agree that these required disclosures help reduce or eliminate gharar. These materials do not constitute the contract that binds you, the house and the bank or other parties involved.
Related Questions
- Someone told me that the papers one signs to apply for and process a purchase with a mortgage alternative are the same as in the traditional mortgage system, why?
- Isnt the Islamic system of purchasing houses the same thing, the same mechanics, as the traditional mortgage system only with different labeling?
- Isn’t the Islamic system of purchasing houses the same thing, the same mechanics, as the traditional mortgage system only with different labeling?
