Istisna’a is a sales transaction where a commodity is sold before it comes into existence. For example this mode of financing may be used for home financing where the client owns land and seeks financing for the construction of a house, the financier can provide him with a constructed house on a specified piece of land. The price must be fixed with the consent of all parties involved. All other necessary specifications of the commodity must also be fully settled. The payment of an Istisna’a may be made in advance or instalments or in a lump sum at the end of the period.
