Who pays for property maintenance in a shared ownership arrangement?

Distinguish between maintenance costs related to asset ownership and expenses incurred from your daily use.

Key points

• In a diminishing partnership, the bank retains actual ownership until you purchase the asset; therefore, the allocation of ownership costs is not understood solely from the installment payment.

• Review the contract to determine each party's responsibilities, and do not accept a clause that lumps all types of maintenance together under one heading without explanation.

Source

• AAOIFI — Sharia Standards