Bay Al Urbun Analysis

From the very beginning , human being engaged in trading to survive. Barter was the common tool to exchange goods and services . By time , the emergence of coins and currencies had great influences to the system of the market .it has replaced the exchanging policy of bartering. Among all these Islam has emerged and shaped the people lifestyle . Islam has determined the ways that Muslims should sustain upon .

Pre-Islamic era , market was not ruled by any regulations . Many disputes and oppressions took place while dealing with transactions. As a result , Islam has differentiated between these transactions according to the harmonization of these transactions and the provisions of Islam .
Bay al Urbun or as some jurists liked to
Actually there are differences between the down payment and bay al urbun . One of these differences is a definition of down payment compared to Bay al urbun . Down payment is defined in the business dictionary as a faith good payment made by a buyer to underline his or her commitment to complete the deal. In mortgage agreements, down payment is the difference between the purchase price of a property and the mortgage loan amount. Also called earnest money or front money. In addition it is known as a type of payment made in cash during the onset of the purchase of an expensive good or service. The payment typically represents only a percentage of the full purchase price; in some cases, it is not refundable if the deal falls through. In most cases, the purchaser makes financing arrangements to the cover the remaining amount owed to the seller
Individuals put down deposits, but the deposit is not part of a loan for the entire cost of the purchase and usually does not incur an obligation to make further payments if the prospective purchaser changes his mind. Firms usually don't deal with this transaction , because it is not a common phrase in business, according to many experts. So "deposit" and "down payment," like all the words in any legal document, must be interpreted according to cases.

According to Islamic provisions these two transactions has been applied in the Islamic market . Regardless , of the disputes in permitting such transactions. Generally, Maliki and shafi scholars has invalidate these kind of transactions since while the hanafi stated it as voidable transactions . On the other hand the Hanabili jurists has validate