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elements that not under the control of the lessee will be upon the owner of the asset. However, the lessee will be liable for any loss or harm that resulted from a misuse or negligence from him and any costs arise for the case of using the asset such as a utility bill. Moreover, the leased asset must be used for the same propose which has been specified in the Ijarah contract. Finally, the owner cannot raise the rent unilaterally, so there must be an agreement upon any changes in the contract. Ijarah in this form is the traditional transaction that has been used for more than 1400 years between different entities and it did not used as a way of finance until recently. In order to use Ijarah as a method of Islamic finance under the technique called (ijarah wa-iqtina) which means that a person will rent an asset for a long period and then own it, many issues should be highlighted and explained.

The beginning of the transaction

In lease transaction and under Islamic law it is allowed to have an agreement of lease for a future date. According to this the lessee specifies an asset that he wants to lease to the lessor to buy it. The lessor has two options in this case. First, he could go himself and buy the asset from the supplier. Second, he could appoint the lessee to be as an agent and buy the asset on behalf of him. In this case there will be a different relationship between them since the lessor will be the principal and the lessee will play the role of an agent. Most financial institutions (lessors) prefer this way to avoid the hassle that would be a long the sale agreement of the asset. When the financial institution owns the asset they must deliver it to the lessee. The relationship between the lessee and the lessor under the Ijarah agreement will start when the lessor transfers usufruct of the asset to the lessee. The rent must be counted on that time and not when the bank owns the asset.

The leasing agreement

In this stage all rules of agreement that has been explained before must be satisfied in order for the transaction to be Shari'a complied. As both parties have agreed to the Ijarah contract before the asset being owned by the lessor, both parties will start the performance of the contract as soon as the asset has been delivered to the lessee. The lessor as an owner of the asset is liable for any costs that would appear upon the purchase of the asset or the delivery to the lessee. However, he can by an agreement with the lessee add this costs to the rental cost which will be payable by the lessee. The liabilities of any loss and harm as stated before have two situations. First, if the loss or harm caused to the asset occurred by the lessee as a result of misuse or negligence then he would be liable. The other situation is that when a loss or harm happens to the asset by factors that beyond the control of the lessee then the lessor would be liable since he is the owner of the asset. In addition, since parties in this transaction have chosen ijarah as an Islamic financial technique some legal actions must be performed in the same time of signing the lease contract. Parties are not allowed under shrai'a law to include the ijarah contract a term which says that when the lessee performs his all duties and pays the rent under ijarah contract, the ownership of the asset shall be transferred to him. It is not allowed because there is a future agreement of sale or gift and these