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However, real estate is far too costly for a lot of people to buy outright using money: Islamic mortgages resolve this issue by having the home change hands two times. In one variation, the bank will purchase your home outright and after that function as a property manager. The property buyer, in addition to paying lease, will pay a contribution towards the purchase of the residential or commercial property.
This is because in some countries (such as the UK and India) there is a stamp duty which is a tax charged by the federal government on a modification of ownership. Because ownership changes two times in an Islamic mortgage, a stamp tax may be charged two times. Many other jurisdictions have comparable transaction taxes on change of ownership which may be levied. https://www.bookmarks4all.win/richard-mcbride-attorney |
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