MAIN IMAGE: Munsief Jassiem – Chas Everitt Northern Suburbs, Cape Town, Ziyaad Khan – retail segment head at FNB Islamic Banking
Kerry Dimmer
Be they buyers or sellers, Muslim customers require specific considerations, be that from a cultural or religious perspective. This is becoming increasingly relevant as the global capitalist economy expands, and most top banks have a separate Islamic Banking division, within which an Islamic home loan structure is also available.
Up front, property practitioners should understand some of the foundation rules that direct how Muslims buy or sell property, and which apply to their daily life or their homes:
Sharia: This means ‘the path’, and is a legal system rooted in the laws and ethics contained within the scripture of the Quran.
Riba: Means ‘increase/exceed/addition’ and is based on the principle of Shariah law that forbids any interest or increased charges on loans. Such is considered unethical and exploitative.
Musharakah: Means ‘sharing’ and refers to a joint partnership and agreement between a borrower or lender to share profits and losses.
Haram and Halal: Halal refers to what is lawful or clean. Haram means what is not allowed or unclean; examples include alcohol and pork.
Musallah: Within Muslim homes is a dedicated space for daily prayers, meditation and contemplation. This is considered a sacred space.
Agent behaviour
Munsief Jassiem, of Chas Everitt Northern Suburbs in Cape Town, says that when dealing with Muslim customers, the usage of terminology is crucial. “The Muslim equivalent of Christian and Christianity is Muslim and Islam; Islam refers to the religion being followed, and a Muslim is a follower of that religion. In this sense, it is better to refer to them as your Muslim clients.”
When entering a Muslim home, it will be evident that cleanliness is a priority, and this applies equally to the manner in which a Muslim person presents themselves. For example, many will remove their shoes at the door, believing that the soles of shoes are unsanitary. As a visitor, you may be asked to follow suit or offered the opportunity to remove your shoes as a precaution.
The greeting is also important, and while no Muslim will object to being referred to as Mr. or Mrs., the use of ‘a-sa-laam-a-lei-kum’ (peace be upon you) will be appreciated, or the response to that greeting, which is ‘wa-a-lai-kum-as-sa-laam’ (and upon you, peace). Note that shaking a hand is acceptable, but touching women is forbidden. However, if a woman extends her hand to you, she is indicating that you should shake it. If no hand is offered, place your hand on your chest as a gesture of greeting.
How you dress is also worth considering. Jassiem points out that “dress code is not something a Muslim person would force on you. However, ideally, Muslim women dress modestly, covering themselves in a manner that is considered modest. It is also not expected that you wear a scarf because you are in their home.
“You are also well-advised not to enter a Muslim home if you have been drinking alcohol. This would be very disrespectful.”
While it may not be usual to take a gift, in the case when agents would like to present a Muslim client with one, apply the haram rule. “You need to make sure that gifts are all halal, such as nuts, dates, flowers and halal confectionery,” says Jassiem.
When viewing the property, you may be invited to enter the Musallah. If you haven’t already, you’ll need to remove your shoes in the same way you would be respectful by doing so in a mosque.”
The time of day you visit is also crucial. Devout Muslims observe five daily compulsory prayers: Fajr at dawn; Dhurh at Midday; Asr in the late afternoon; Maghrib after sunset; and Isha in the late evenings.
While many Muslim people will accept that you do not follow their rules, by showing some attempt to abide by them in their home, you will be honouring their lifestyle, and this will likely earn you some kudos. If you are uncertain, it is best to approach your client and ask what practices they would like you to follow, especially when setting up viewings.
Banking: not just for Muslims
As mentioned, most traditional banks, unless they are specifically defined as a Muslim bank, have an Islamic Banking division. Explaining why and how it works is Ziyaad Khan, retail segment head at FNB Islamic Banking. “It is a credible alternative to conventional banking and is available to all, irrespective of race or religion. It holds a special appeal for many non-Muslims who wish to avoid interest-based transactions.
“Muslim customers, however, are obliged to seek financial transactions that comply with Islamic laws that follow a strict moral and ethical conduct. These are unique solutions in that they utilise profit-sharing and various other structures to ensure that a customer’s holistic, ethical, and religious needs are ‘solutioned’ for, thereby enhancing financial inclusion. The Islamic Banking Division at FNB, for example, exists to provide appropriate financial solutions for all these customers.”
This is where Riba comes into play. An Islamic bank, in simple terms, does not operate with interest. A customer will be offered a bond, as per usual, based on affordability. A large deposit (usually a percentage of the purchase price) may, however, be required, and the balance split between the bank and the buyer over an agreed period. This is usually shorter than the traditional 20 to 30-year home loan, so monthly instalments are much higher. The bank charges a fee for the bond versus the interest you would pay at a standard bank.
“Islamic banking emphasises social responsibility, avoiding investments in industries like alcohol, gambling, and many entertainment spheres. It also tends to move away from the view of money as a commodity and prefers to solve for the core need – in this example, buying the actual home – rather than simply providing the funds to buy the home,” says Khan.
The application process is similar to that followed by a traditional home loan division. For example, Khan notes that credit scoring and other onboarding criteria align, ensuring there is no bias in the application. “Customers can expect the same great service and technological capabilities, including, in FNB’s case, access to the FNB app and online portals.”
Islamic banking has gained significant traction both in South Africa and internationally. It has become a sought-after solution for Muslims as well as those of other religious affiliations. “Many prefer Islamic Banking due to its transparency, customer centricity, as well as compliance with religious beliefs and principles,” says Khan. “Not all Muslims apply for this type of home finance, though, nor are they obliged to use Islamic finance and can opt for traditional home loans.”
