I have a couple of clarifications I am seeking on murabaha transactions.
In murabaha, I feel there is a potential for severe harm to the buyer. I will illustrate this with an example. Let’s say a house is being sold for $500,000. However, the financier offers it to the buyer for $700,000 over 20 years in a murabaha contract. Now, the buyer has to pay $700,000 over 20 years - usually this value is comparable to what the buyer would have had to pay to a bank in an interest-based mortgage. However, let’s say the buyer now lost his job and he has to relocate to another city or he has to sell his house for some other reason after 2 years. In this scenario, after 2 years the buyer will sell his house at some price ($500,000 + 2 years appreciation ~ $550,000) which will be far less than what he owes the financier. The buyer could lose all his capital gain and still end up with hundreds of thousands of dollars in debt. How can this situation be mitigated? Is it permissible to have some kind of “early sell” clause in the murabaha contract - i.e. if the house is sold early in x years, then only y amount will be due? This scenario does not arise in a conventional mortgage where you would not end up paying 20 years of interest to the bank if you sell the house early.
In a murabaha contract, the financier will purchase the property first. Is it allowed for the financier to require the buyer to put forth both the deposit and downpayment for the initial purchase?