The seller must own the commodity when the sale is concluded. A person cannot first sell a car owned by someone else and merely hope to acquire it later. In bank financing, this means the institution cannot sell the requested asset before acquiring ownership.
The ownership must be real rather than only documentary. Rights, benefits and the relevant ownership risk should follow the share actually owned at that stage.
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Cost-Plus Sale (مرابحة): Foundations and Rules of Sale
The seller must own the commodity when the sale is concluded. A person cannot first sell a car owned by someone else and merely hope to acquire it later. In bank financing, this means the institution cannot sell the requested asset before acquiring ownership.
The ownership must be real rather than only documentary. Rights, benefits and the relevant ownership risk should follow the share actually owned at that stage.