Who pays for maintenance and insurance in a lease?

Distinguish between costs incurred from owning the asset and costs incurred from using it.

Key points

• Not every expense should be automatically borne by the client simply because they are the beneficiary of the asset.

• The lease agreement must clearly outline the distribution of responsibilities, especially for basic maintenance, insurance, and operation.

• Before signing, request a clear breakdown of what the bank is responsible for and what you are responsible for.

Source

• AAOIFI — Sharia Standard 9: Ijarah and Ijarah Muntahia Bittamleek