Ijarah Maintenance and End-of-Term Review Checklist
An Ijarah quote can look straightforward because the customer pays rent for the use of an asset. The critical details are who owns the asset, who bears ownership-related costs, what the customer must maintain and what happens at damage, default and the end of the lease.
This checklist is general information, not legal, tax, credit or Shariah advice. Ijarah contracts differ; review the complete agreement and current product approval.
1. Identify the asset and owner
Record the exact asset, supplier, price, delivery condition and legal owner during the lease. Confirm when ownership begins and ends and how registration documents reflect the arrangement.
2. Separate rent and other payments
List base rent, deposits, administration fees, service charges, insurance or Takaful, taxes and end-of-term amounts. Reconcile the payment schedule to the signed agreement.
3. Allocate ordinary maintenance
State which servicing, consumables, inspections and minor repairs are the customer’s responsibility. Record approved service providers, intervals and evidence required to avoid a breach.
4. Allocate ownership-related maintenance
Identify structural repairs, latent defects, major replacement and other costs connected to ownership. Check how the contract distinguishes owner obligations from damage caused by misuse or negligence.
5. Review insurance or Takaful
Record who arranges cover, pays the contribution, receives claim proceeds and bears deductibles. Ask how the asset and rent are treated after theft, total loss or an extended repair.
6. Test late delivery and defects
Clarify when rent starts, who claims against the supplier and what happens if the asset is defective or unavailable. Keep delivery and acceptance evidence.
7. Understand variable rentPre-signing questions
Which signed document proves the provider owns the asset before leasing it?
Which repairs are expressly allocated to the owner?
Can rent continue while the asset is unusable?
What exact amount or process applies if the customer wants the asset at the end?
Which ombud or court process handles a dispute?
Require written answers that are consistent with the contract rather than relying on a sales explanation.
If rent can change, record the benchmark, review dates, caps, floors and notice process. Ask for examples. A benchmark reference should not obscure the underlying lease rights and obligations.
8. Test early termination
Request worked examples for voluntary cancellation, sale, refinancing or total loss. Identify outstanding rent, asset value, fees and any purchase or settlement undertaking.
9. Review default and repossession
Record notices, cure periods, collection charges, repossession, sale of the asset and treatment of proceeds. Obtain advice on applicable consumer-credit protections and dispute channels.
10. Confirm end-of-term options
State whether the asset is returned, sold at an agreed price, transferred through a gift or handled another way. List conditions, final inspection, transfer costs and documents. Do not rely on an informal promise that ownership will pass.
11. Verify Shariah governance
Retain the product approval, named Shariah adviser or board, contract set and explanation of maintenance, insurance, late payment and transfer. Record how amendments are reviewed.
12. Keep the contract file
Store the quote, asset invoice, delivery record, lease, service evidence, claims, payment schedule and end-of-term documents. Review the file before any material change.
Official starting points
Practical outcome: the customer should know who owns the asset, who pays every category of cost and how damage, default, early exit and end-of-term transfer work.
