Sharia and Legal Evaluation of the Lease-to-Own Contract as Conducted by Subsidiaries of Conventional Banks in Jordan

This study aimed to clarify the legal rulings related to lease contracts ending with ownership, as implemented by companies affiliated with traditional banks. The study addressed the legal evaluation of the lease-to-own model, examined the reality of financial lease contracts, and reviewed the legislation and legal aspects of lease contracts ending with ownership and corporate law. The study was divided into three sections: the first section discussed companies affiliated with traditional banks that use Islamic financing models; the second section addressed the Sharia ruling regarding lease contracts ending with ownership; and the third section examined the legal rulings related to the financial lease contracts conducted by companies affiliated with conventional banks. The research concluded with a set of findings, the most important of which is that it is not permissible for subsidiaries to charge all maintenance expenses to the lessee, nor is it permissible to have lease agreements ending with ownership involving both fixed and variable rents. Additionally, from a legal standpoint, affiliated companies should not prevent lessees from subletting leased properties. The study recommended that companies dealing with Islamic financing models under conventional banks appoint a Sharia supervisory board to monitor contracts and their execution. Moreover, these companies are encouraged to participate in scientific conferences, review international experiences and models in this field, and apply these insights to enhance their operations.