Registration of a Musharaka contract

In this article, we will explore the topic of registering a Musharaka contract in real estate, which is a prevalent financial mechanism in Islamic law and modern financial practices. The Musharaka contract involves financing real estate projects based on profit and loss sharing between parties, aligning with Islamic principles that prohibit usury and promote economic justice. We will discuss the concept of Musharaka in real estate, its significance in supporting balanced and sustainable real estate investments, and the necessary conditions for its registration, emphasizing compliance with Islamic principles in this context.

• I-Required Documents
• II-Registration Location
• III-Registration Fees
• IV-Registration Process
• V-Registration Deadlines
• VI-Conclusion

I-Required Documents

Individuals wishing to register a Musharaka contract must provide the following documents: the original contract if prepared by a lawyer, along with at least two legal copies.

If the contract is prepared before a notary public, an original transfer card and a regular copy must be submitted.

Additionally, copies of annual clearance receipts for the past three years must be included, along with payment of registration fees and receipt of documents within 24 hours of registration.

The contract must comply with general conditions for registering real estate sale contracts without any violations.

The treasury office always retains an original copy of the documents. For lawyer-prepared contracts, the registration office retains an original and another legal copy, necessitating the submission of four legal copies for registration, as the treasury office retains two copies.

II-Registration Location

Regarding notary public deeds, they are registered with the relevant treasury office where the notary public is located.

As for deeds prepared by individuals other than notary publics, they are registered with the appropriate treasury office where the property is located.

III-Registration Fees

When it comes to registering the initial contracts for Musharaka sale, they are registered with proportional or incremental fees, similar to regular sales transactions where fees vary according to each contract’s terms.

The first contract for Musharaka sale involves the Islamic bank purchasing the property directly from the original owner.

As for the second contract for Musharaka deeds, executed between the Islamic bank and the customer, it is registered with a flat fee of 30 dinars per page, along with a levy of 0.2% of the property value upon sale, designated as the mortgage fee for registered properties.

IV-Registration Process

The process of drafting a property sale contract involves ensuring all parties are identified with their signatures registered at the civil status authorities in the municipality.

Additionally, obtaining a clearance certificate for the property being sold is required. The contracts must then be submitted to the treasury, accompanied by at least three legal copies, along with copies of annual payment receipts for the registered party over the past three years.

Registration fees must be settled with a receipt obtained within 24 hours of registration.

For contracts drafted without notarial amendments, they must be registered with clearance receipt and submitted with proof of birth of those concerned to the regional property administration.

As for notarized transfer deeds, obtaining a clearance receipt and presenting it to the notary is necessary to obtain ordinary jurisdiction, and submitting it to the regional property administration with proof of birth of those concerned.

V-Registration Deadlines

Sale and lease-back contracts must be registered within 60 days from the date of issuance of the documents. If this deadline is exceeded, late fees will be imposed according to applicable regulations.

VI-Conclusion

In summary, registering sale and lease-back contracts for properties is essential to ensure compliance with Sharia principles and enhance transparency in financial transactions. The process involves submitting required documents, paying registration fees within specified deadlines, thereby supporting sustainable and reliable real estate investments.