LARIBA

Question:

RIBA means money for money, like interest? For example when you buy a house from a bank, they put an interest rate in your agreement to compy with the terms of purchase, but at the end of the paperwork it says you will be paying for example $1000/month for 30 years. How is this bad? When I buy a house at the end of the 30 years, I am gaining not losing. The house will be worth the total of what I have paid, why is this considered RIBA?

Answer:
We define Riba as the act of renting money. Yes, we at LARIBA, are on a mission to remove Riba state of mind out of peoples'
way of reaching decisions. However, there are important factors that we, at LARIBA, have to follow in order to satisfy government rules & regulations and in order to protect the investments of those who entrust us with their money. One of these factors is THE CREDIT HISTORY. Under normal circumstances, it is one indication of the person's ability to meet his/her commitments & promises. In Islam, fulfilling a promise is a basic foundation of the faith: A Promise to Abide by the Shahada, A Promise to Fulfill the 5-Pillars, A Promise to Pay One's Financial & Other Obligations,..etc. The Credit Report also is an indication of how the person conducts his/her life.
Most importantly: DO THEY LIVE WITHIN THEIR MEANS? So, if the CREDIT REPORT indicates chronic violations of promises and chronic indications of living outside their means, then one has to be careful as an investor.
I am aware that there are exceptions and that there are unusual circumstances that result in a low credit rating. I am also aware that Allah is Ghafoor (Forgiving.) In this regards, one needs to discuss the problems with his/her advisor and try to fix that situation with another promise NOT to do it again.

Question:

I am investing in a subway restaurant, and was told that it is haram to deal with pork no matter what the percentage. As a muslim looking for the truth, I do not know what to do and what to believe. What credentials do you have that makes me follow you and not those who told me that it is absolutely haram?

Answer:
The first rule of issuing a religious opinion, FATWA &/or Answer to A question, the scholar is required NEVER to answer before:

1. Understanding the question.
2. Asking for and understanding the situation of the person who is asking the question.
3. Understanding the environment where the questioner lives, the culture of that environment and the status of the environment is it "Muslim Majority" or "Muslim Minority."

The reason for that, according to the very wise teachers, leaders and scholars of Islam, is that a Fatwa should be tailored to satisfy all the above. The rules for that are:

1. Faith is to make life easy NOT to make it difficult. (Al deenu' Yusrun Wa Laisa Usrun - Hadeeth)
2. The local scholars indeed are more qualified to know the intricate details of the local situation. (Ahlu Makatta Adraa Bi Shi'aabiha - the People of Makkah know more about how to navigate its smalles and more difficult to find small roads - Hadeeth.)
3. The foundation of Shari'aa is that all actions are halal except those that were prohibited. (Aslu Al-Fiqh huwa Al;-Halal.)
4. One cannot hurt oneself, family, business and the Ummah while trying to apply the Shari'aa (La Dharara Wa La Dhirar - a rule established by Abu Hanifa Al-Numaan the famous scholar of the Hanafi school of thought.)
5. The system that was followed over the years was to solicit opinions from different scholars on a subject and then the person would follow that scholar that she/he feels more comfortable with, it is called taquleed or following that scholar as an example. However, one cannot follow five and choose from each the opinions that fit. One has to be consistent. In the final analysis, it is that scholar who will end up carrying the greatest burden on his/her neck when asked on the day of judgement.
6. It is a matter of the intention of the person who is asking the opinion (Niyat.) I think I wrote about that in my previous communication.

Finally, I remember that asked if you would need to pay whatever you get out of the pork sales to charity. The answer is yes you can as a cleansing mechanism - NOT counted in the Zakah - till you intelligently reach your goal of minimizing the sales to zero inshaa Allah.

And ONLY ALLAH KNOWS THE ABSOLUTE CORRECT ANSWERS AND TRUTHS - Wallahu Alaam.

Question:

Can you read the Quran or any other holy text while standing or walking around?

Answer:
The basic rules of reading the Holy Qur'aan are:
1. You have to be Tahir (Clean) and have a valid Wadu (abolution.)
2. Full concentration in order to understand the meanings, reflect on these meanings, ponder on the signs (ayat) Allah and to compare ones' behaviour with the instructions of the Holy Qur'aan. If one mmorizes the Qur'aan, one can repeat it while driving, walking or waiting. If one reads it from the text, then it is better to sit and concentrate.

Question:

I would like to be cleared on the following. We have the possibility of putting our money in a fixed deposit account for a specific duration (one year or longer) and in return the bank pays us an interest at the expiration date depending on the amount deposited. Can you tell me if this is allowed in Islam?

Answer:
Depositing money in the Bank and getting a fixed income after time is haram IF THE INCOME COMES FROM AN INTEREST SOURCE. However, if the income to your deposit comes from a Riba-Free loan, then it is halal. From what I know about your country and the fact that there are no Shari'aa compliant loans there, most likely the income is riba.
The income from this fixed deposit can be used for charity purposes as ruled by many prominent scholars.

Question:

What are the primary differences between LARIBA and Guidance?

Answer:

1) We do not Rent Money. We approach each transaction as an investment (using the Lease-to-purchase Model) instead of Lending. We advise you as to whether the transaction is a good investment or it is better to rent.
2) We never start from an interest rate to calculate your payment. Your payment is based on the market rental value of the property you are seeking to finance. The rental value is determined by mutual agreement between you and us.

3) We use the standard legal documentation required by law for Mortgage financing and we supplement them with the LARIBA Agreement which documents the process we used to calculate the payment and the rental value agreed upon.

4) Title of the property is in your name alone. LARIBA is shown as a financing entity.

5) There is no Co-ownership fees or special legal fees required for our financing model, hence lower costs to you upfront and throughout the transaction.

6) We do not Require you to Escrow the taxes and Insurance. You can pay them by yourself as they become due and forward to us a copy of your paid receipt/check. This lowers your upfront costs.

7) You can pre-pay or pay-off the financing at any time. No special approval is needed.

8) Lower Closing Costs and Reconveyance Costs. We have lower upfront fees and since we use traditional documents, the reconveyance of the home to you when the financing is paid off does not require special documents or attorney services which saves you money.

9) We work with clients in a humane and fair way in times of trouble irrespective of the LAW allows to do.

10) We retain the Financing relationship. We do not transfer the transaction to different company who handles your loan and does not follow Shariaa principles in their dealings with you.