If the client and the bank go into a transaction, there must be a number of things made clear so that it wouldn't be a trick towards avoiding RIBA.
The client has two hats; an owner and a tenant.
Therefore, after buying the property and it is registered in both their names, the contract for renting should be between 3-5 years and the percentage that the client would get from the bank must be also known.
The renting contract must be renewed every 3-5 years. The partnership must be true as they are both responsible for Maintinance of the house and the cost is shared between them according the ownership percentage.
This partnership is real and not to camouflage RIBA. If it is implemented as such, then it is permissible.
Diminishing Ijara | Sheikh Assim Al Hakeem