This study examines the legal formalities required for real estate transactions and their impact on Islamic banking contracts in the Sultanate of Oman. It analyzes the interaction between the legal requirements imposed by Omani law—such as registration, documentation, or written form—and the nature of Sharia-compliant contracts adopted by Islamic banks. The research aims to explore the extent to which these formalities affect the validity of real estate contracts and whether they align with Islamic legal principles. The study adopts a descriptive, analytical methodology, reviewing relevant legal texts and practical applications in Islamic banking within Oman. The findings reveal that legal formalities play a crucial role in ensuring the stability of real estate transactions; however, they may impose procedural constraints on Islamic contracts if not addressed through a shared legal and Sharia-based understanding. The study recommends enhancing coordination between Sharia boards and legal or notarial authorities to prevent contract nullity or disputes and to promote legislative alignment with the specificities of Islamic banking operations