Questions you've always wanted to ask us

Below you will find answers to many of the common questions we are asked at Amlak Finance.

If you cannot find the information you are looking for on this page, please feel free to contact us and a dedicated Customer Care representative will be happy to provide you with the information you need.

1.

What are the various home finance schemes?

Amlak offers Shari'a compliant financing for ready and under-construction properties which could be either residential or commercial. Please refer to our products and services section for the available home finance schemes and offers.

2.

What is the mechanism regarding ownership of the property under sharia compliant property financing?

The property will be purchased by us and leased to you for the term of the finance. Once you have fulfilled all your obligations under the Ijara finance documents, the property ownership will be transferred to you.

3.

Can I rent out or sub-lease the property to a third party?

Yes, you can rent out or sub-lease the property to a third party provided that you inform us of your intention to lease in writing in advance and remain fully responsible for the performance of your obligations under the Ijara finance documents. Amlak reserves the right to seek further information, before providing acceptance to you to rent or sub-lease.

4.

Can the property be sold during the term of the finance?

The property may be sold to a third party only after the obligations under the Ijara finance documents are duly discharged and the customer becomes the owner of the property from Shar'a perspective.

5.

If Amlak owns 100% of my property, what happens to the down payment I've made to the developer?

Your down payment will be adjusted towards the fixed rental obligations under Ijara finance documents. Total fixed rental is an amount equal to the cost of the property and outstanding fixed rental shall be an amount equal to outsanding finance amount.

6.

Will my lease agreement be automatically renewed?

Your term of finance is considered to be the entire lease term, and it is divided into monthly lease periods. The lease agreement will be renewed pursuant to a notice at the end of each lease period and you will be informed accordingly. 

7.

Can my variable rental rate change? If yes, how often?

Under Ijara, the rate used by Amlak to calculate the ‘variable rental’ is floating and may change over the term of lease, the mechanism is set out and the calculation is in accordance with the terms of the Ijara finance documents, a copy of which is given to each customer. However, the total payments are communicated through the lease renewal notice and it will be effective from the start of your next lease period. You will also be notified via SMS. 

8.

Who bears the charges for service and maintenance of the property charged by the developer?

The service and maintenance charges levied by the developer (which is for the ordinary maintenance) shall be borne by the customerwould have to be borne by you.

9.

What will the property takaful (insurance) cover?

It will cover all damages arising out of fire accidents, natural perils and harm caused by third parties.

10.

If I have life takaful (insurance) to cover my outstanding obligations with Amlak, will the property be transferred to my heirs in the event of my death and if the obligations are settled in full?

In the event of a customer’s death, the property will be transferred to the heirs (determined in accordance with decision of the relevant authorities) and after the obligations under the lease and/or other relevant documents are cleared by the life takaful proceeds. 

11.

Can I pre pay/partly settle any amount during the term of the finance?

Yes, you may partly or fully settle your obligations with Amlak any time during the term of the finance, subject to terms and conditions of the Ijara finance documents.

12.

What is the procedure for pre-payment or partial payment?

You can choose to pay in full your obligation towards Amlak or just make a part payment. Once you inform us of which option you would like to proceed with, you can obtain a liability letter and pay the amount to our account. You may also be required to submit relevant supporting documents. In case of full payment, Amlak shall transfer the property to you. In case of partial settlement the rental payments or the lease term under the Ijara finance documents will be amended based on mutual consent

13.

Will I have to pay any charges for full or partial settlement?

Yes, for further details please refer to our standard tariff of charges which can be found on our website. As mentioned above, the full or partial settlement mechanism is as per the terms of the Ijara finance documents.

14.

Can my bank deal directly with Amlak Finance to settle my obligations?

Yes, upon your request. Further, please be informed that any financial information (such as balances) will only be provided upon a written request.

15.

Ijara documents comprise of the following:

  • Offer Letter: The offer letter provided by Amlak at the time of entering into the facility and its acceptance by the customer.
  • Ijara Agreement: The main document which governs the lease arrangement between Amlak and the customer, among other things the Ijara Agreement provides the mechanism for the lease term and the mechanism for lease renewal and calculation of rental.
  • Service Agency Agreement: Customer is appointed as the agent of Amlak to undertake certain tasks like major maintenance on behalf of Amlak.
  • Purchase Undertaking: Promise by the customer in favour of Amlak whereby the customer undertakes to purchase the property upon occurrence of certain events as provided in the undertaking.
  • Sale Undertaking: Promise by Amlak in favour of customer whereby Amlak will sell the property to the customer either during the lease term or at maturity.