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HERE are some of the things you need to know about wakaf land before deciding to make a purchase

Q: Who is qualified to purchase the property?

A: All Muslims are qualified to purchase property built on wakaf land.

Para Ulama’ As-Syafie cited that wakaf may be extended to non-Muslims or “Zimmi”, so long as it is not intended to be used for vice. If there is a possibility that the recipient of the wakaf property will perform vice, then the wakaf is invalid as it conflicts with the wisdom and purpose of wakaf.

Though non-Muslims can benefit from wakaf land, it is deemed more prudent for Muslims to benefit from it in view of the above and the current demand for limited affordable housing by the Muslims.

Q: Will the purchaser be signing a Sales & Purchase Agreement? If not, want kind of legal agreement will he be signing?

A: The purchaser will not be signing a Sales & Purchase Agreement since ownership of a wakaf land cannot be surrendered. Instead, purchaser will be signing a tri-partite Lease Agreement between the land owner/lessor (MAIS), developer (NSC) and lessee (purchaser). For the development of wakaf land, concept of “Ijarah”, or lease, is applied, where the land to be developed continues to remain the property of MAIS and only its benefits are transferred to the lessee. The lease Agreement is drafted in such manner that it will be syariah-compliant.

Q: How long is the lease period for the property?

A: The property has been granted a 99-year lease period.

Q: Will there be any legal fee and stamp duty chargeable to purchaser?

A: Yes, the purchaser will still need to pay for legal fee and stamp duty according to the Solicitors’ Remuneration Order 2005 (amended recently as at 15 Mar 2017) and Stamp Duty Act 1949.

Q: Will the purchaser’s name appear on the land title?

A: As mentioned above, MAIS will remain the landowner. However, the purchaser’s particulars will be endorsed on the land title as lessee and he will also need to sign Form 15A (Memorandum of Lease) with the Land Office.

Q: What will happen to the property in event of the demise of the purchaser?

A: Since lease can be inherited, a replacement can be nominated by the deceased next of kin.

Q: Will purchaser be able to secure home financing loan for wakaf property?

A: Yes, such loan is now offered by several financial institutions under Islamic financing. Earlier, wakaf properties are thought to be inalienable because they have to remain as wakaf in perpetuity, which make the wakaf institutions wary of using them as collateral for fear of losing them to the financiers. The financiers are not willing to accept wakaf land due to legal constraints arising from the same concept of inalienability and perpetuity.

The concept of perpetuity of the physical being of the subject matter of wakaf is substituted with one that recognises the perpetuity of dedication, through assigning value to the object of wakaf and amortising it, so that not only various rights can be accepted as the object of wakaf but also make the object alienable.

Q: Is it possible for the purchaser to sell the property in the secondary market?

A: The purchaser is allowed to sell the property. However, a lawyer needs to issue a letter to PWS to confirm the current registered lessee.

Q: Will the purchaser enjoy full profit from the sale of the property or will he/she be sharing it with the landowner?

A: The purchaser will enjoy full profit from the sale of the property.

Q: Can the purchaser rent out the property to non-Muslims?

A: Yes, the purchaser can rent out the property to non-Muslims.

Q: Does MRTA apply on purchaser’s loan in the event of premature death or total permanent disability of the purchaser?

A: Yes, certain Islamic financial institutions offer the same coverage known as Mortgage Reducing Term Takaful (MRTT).

Q: Can the purchaser make any renovation or extension to the property?

A: The purchaser shall not carry out any variations to the property without prior written consent of the relevant authorities.

Q: Is there any evidence to prove that wakaf land can be developed and leased?

A: As stipulated in Section 8(1) Administration of the religion of Islam (State of Selangor) Enactment 2003, Section 3(1) of the Establishment Waqaf Corporation of Selangor Order 2011 and Fatwa by the Mufti of Selangor (04/12), MAIS is authorised for the development of wakaf land by way of lease of 99 years.

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