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Issues in Bay' Bithaman Al-Ajil ('BBA'): A scrutiny of some selected BBA terms

Md Dahlan, Nuarrual Hilal and Shuib, Mohd Sollehudin and Mohd Noor, Fauziah (2015) Issues in Bay' Bithaman Al-Ajil ('BBA'): A scrutiny of some selected BBA terms. In: 8th UUM International Legal Conference 2015, 25-26 August 2015, Bandung Indonesia.

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It is trite fact that Bay' Bithaman al-Ajil ('BBA') is a type of l'slarnic Home Financing Facility ('IHFF'). BBA is popular among Islamic Banks in Malaysia in providing IHFF facility to house purchasers in the burgeoning housing industry in Malaysia.However, some scholars argue that BBA is an inadequate IHFF as it fails to provide sufficient protection to house purchasers particularly when housing projects are abandoned.Thus, it is argued that BBA is a non shariah compliant product due to the existence of gharar elements.This can render its transaction void under Islamic Law. This paper aims to discuss and demonstrate the terms used by a selected Islamic Bank in Malaysia in their BBA documentations.Further, this paper proposes improvisations of the inadequate terms in the BBA in order to ensure it a well-balanced and equitable facility.This paper is an outcome of a research using legal research methodologies and textual legal analysis of the BBA documents. Through this paper, it finds that BBA's terms used in the selected Islamic Bank are incapable of providing reciprocal benefits to the purchaser victims in abandoned housing projects.This paper proposes that the current terms in BBA should be improved to give justice to purchasers.

Item Type: Conference or Workshop Item (Paper)
Additional Information: ISBN: 978-967-0910-03-1 Organized by: Pusat Pengajian Undang-undang, School of Law, Universiti Utara Malaysia
Uncontrolled Keywords: Bay ' Bithaman al-Ajil; inadequate terms, abandoned housing projects, injustices; purchasers' grievances
Subjects: B Philosophy. Psychology. Religion > BP Islam. Bahaism. Theosophy, etc
K Law > K Law (General)
Divisions: College of Law, Government and International Studies
Depositing User: Dr. Nuarrual Hilal Md. Dahlan
Date Deposited: 15 Sep 2015 07:17
Last Modified: 15 Sep 2015 07:17
URI: http://repo.uum.edu.my/id/eprint/15474

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