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Types of Ijarah Muntahia Bittamleek


Ijarah muntahia bittamleek (ijarah ending with ownership transfer) is a form of ijarah that concludes with passing the legal title in the leased property to the lessee at the end of the lease tenor. This ijarah can be classified into two main types:

  1. Ijarah muntahia bittamleek through hibah (gift): where legal title is transferred to the lessee without any more payments.
  2. Ijarah muntahia bittamleek through ba’i (sale): which itself can be divided into:
    1. Ijarah muntahia bittamleek through transfer of legal title at the end of lease tenor for a nominal consideration.
    2. Ijarah muntahia bittamleek through transfer of legal title prior to the end of lease tenor for a price that is equivalent to the remaining ijarah installments (net of rental).
    3. Ijarah muntahia bittamleek through gradual transfer of legal title of the leased property.

The second type of ijarah muntahia bittamleek (through sale) is also known as ijarah wa iqtina or ijarah thumma al ba’i.



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