FAQ: Who will be registered as the owner in the land register?

In Germany, besides the land charge (registration of lender + loan amount), the buyer is registered in the land register as the owner. In the case of financing via SUKUUK, the buyer is listed as the owner in the land register. In the framework contract, it is agreed that the buyer grants its “right to use” to the special purpose vehicle (SPV) in return for the interest-free loan received. This eliminates the risk of double taxation of the real estate transfer tax. The buyer leases his property from the SPV until the interest-free loan is repaid and he holds all shares of the property. 

Note: The planned version has not yet been finally confirmed and there may be changes to the currently available agreements. 

#SPV, #diminishing musharaka