Home Buying

TABUK proudly offers an ethical alternative for those seeking to fulfill their dream of homeownership without resorting to Riba, in obedience to Allah’s (SWT) commandments.

Rather than letting your savings stagnate in a traditional bank, consider investing in TABUK’s shares while awaiting your turn to purchase your home. Your shares in TABUK serve as a conscientious investment, allowing you to earn quarterly dividends.

As a prospective homeowner, you have the liberty to choose the location of your desired house or apartment. To initiate this journey, a buyer is required to hold shares equivalent to at least 25% of the actual price of the selected property, ensuring a meaningful and participatory investment.

In addition to the investment, buyers engage in a fair and mutually agreed arrangement by paying monthly occupancy charges, akin to rent. This process not only aligns with Islamic principles but also fosters a transparent and cooperative relationship between TABUK and its members.

By choosing TABUK, you are not just investing in property; you are investing in a values-driven and Shariah-compliant model that prioritizes fairness, transparency, and the fulfillment of your homeownership aspirations. Join us on this unique and spiritually rewarding journey towards acquiring your home without compromising your principles.

Home Buying Process

In our unwavering commitment to fairness and transparency within our Home buying process, we have meticulously defined and streamlined a comprehensive series of steps. This process incorporates a dynamic list of members eagerly awaiting the opportunity to buy a house, with points allocated to each member. These points are recalculated quarterly based on our meticulous point calculation system.

Home Buying Steps:

Membership Enrollment:

  • Begin your journey by becoming a valued member of TABUK. Complete the membership application and pay the requisite membership fees.

Active Waiting List (AWL) Enrollment:

  • Join the Active Waiting List by submitting the “AWL Inclusion Form” along with a minimum investment of $20,000. In this form, provide details such as:
    • Type of house you are seeking
    • Estimated price range of the intended house
    • Amount of down payment you plan to make at the time of purchase, inclusive of your investments
    • Complete pay-off period (in years) and monthly rent payment

AWL Form Review:

  • The TABUK Board will meticulously review the AWL form, providing members with a written or emailed decision along with their total points and position on the AWL.

Wait for Top of Waiting List:

  • Patiently wait until you ascend to the top of the waiting list.

Deposit Full Down Payment:

  • When TABUK has sufficient funds available, members at the top of the waiting list will be contacted to deposit their full down payment as indicated in the AWL form.

House Selection and Purchase:

  • Upon fulfilling the down payment requirement, members will be invited to select a house, and TABUK will facilitate the purchase on their behalf.

Point Calculation Method:

For a detailed understanding of how points are calculated, please refer to the Point Calculation Method, ensuring transparency in our scoring system.

By adhering to this refined process and transparent point calculation system, TABUK ensures an equitable and clear pathway for members to achieve their dream of homeownership.


Active Waiting List (AWL)

To ensure a smooth and transparent process, members must have a minimum of $20,000 in shares in their TABUK account when submitting the AWL Form, along with the necessary supporting documents. Upon submission, the TABUK Board will meticulously review the AWL form and communicate their decision to the member in writing or via email.

Once the member’s AWL application is approved, the Point Calculation method will be applied to determine their total points. A comprehensive email, including the member’s position on the AWL and total points, will be promptly dispatched to the member.

Subsequently, as the member approaches the #1 position on the AWL, TABUK will initiate contact, prompting the member to deposit their “FULL DOWN-PAYMENT” as specified in the AWL Form.

Following the successful deposit of the full required down payment into the member’s TABUK account, the member will be empowered to embark on the next exciting step. They will be encouraged to select a home that aligns with their preferences, and TABUK, in turn, will facilitate the purchase of the chosen house on behalf of the member.

This meticulously crafted process aims to provide members with clarity, transparency, and support at every stage, making the journey toward homeownership with TABUK a seamless and empowering experience.

Point Calculation Method

To ensure fairness and transparency for all TABUK members, we employ a comprehensive point calculation system using five factors to determine a member’s eligibility for the Active Waiting List (AWL) to purchase a house. These factors contribute to the member’s Total Points, reviewed every quarter.

Point Calculation Factors:

  1. Membership Period:
    • Gain 1 point per quarter.
  2. Investment:
    • Gain 1 point for every $10,000 invested.
  3. Commitment to Down Payment Percentage:
    • Gain points based on the commitment to the down payment at the time of purchase:
      • 1 point for 30%
      • 2 points for 35%
      • 3 points for 40%
      • 1 point for each additional 5%.
  4. Complete Payoff Time:
    • Gain points based on the commitment to pay off the house:
      • 1 point for paying off in 5 years
      • 2 points for paying off in 4 years
      • 3 points for paying off in 3 years
      • 4 points for paying off in 2 years
      • 5 points for paying off in 1 year.
  5. Total Investment:
    • 1 point per $10,000 invested.


Step 1:

  • Brother Nazih deposits $20,000, submits required documents, and commits to a 40% down payment, 5-year payoff, and additional $12,000 investment, totalling $32,000.

Step 2:

  • TABUK Board reviews and approves the application, assigning points:
    • Membership Period: 1 point
    • Investment: 3 points
    • Commitment to Down Payment: 3 points
    • Complete Payoff Time: 1 point

Total Points Assigned to Brother Nazih: 8

Brother Nazih is informed of his approved AWL application, his position in the queue (second in this case), and his total points.

This robust point calculation system ensures a fair and transparent process, allowing members like Brother Nazih to understand their standing in the AWL and make informed decisions on their home purchase journey.

Paying Off the House

After TABUK has acquired the housing unit for the benefit of the member, a pivotal step ensues. The member, in recognition of the shares as the down payment for the house, will surrender all shares, rendering them ineligible for any future dividends. Simultaneously, an occupancy agreement will be meticulously crafted and executed between TABUK and the member.

The determination of the “Monthly Rental Value” for the housing unit will be based on the prevailing rental/lease rates of similar houses in the area. Additionally, to cover administrative costs, the member will be responsible for a $75 monthly administration fee.

For the member to complete the ownership process of the occupied housing unit, they must gradually accumulate shares equivalent to the total cost of the housing unit. The homebuyer member is obliged to purchase shares as outlined in the AWL form until their shares reach the full 100%.


In the event that a member occupying the house unit needs to vacate, a 90-day notice must be provided to TABUK. The housing unit will undergo evaluation by TABUK and will be made available to eligible members.

If no member expresses interest in the housing unit or if no member can take over within the stipulated time, the occupant member will be granted permission to arrange the sale of the housing unit to non-members.

This comprehensive approach ensures a smooth and organized transition for both TABUK and its members, facilitating fair and equitable processes for occupancy, ownership, and potential disposition of the housing units.