Changing the Intention of Land to Sale
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Fatwa No. ( 16628 )
Q: I bought land with the intention of developing it and utilizing it for investment. A lunar year passed, and my intention changed to selling it. I offered it for sale, but it did not sell, and I do not have enough cash to pay its zakah based on its value at the time of purchase, even though I
do not guarantee the return of the capital or its increase. How is its zakah to be paid? If I delay the zakah until I find the amount or until it is sold, is this permissible? And do I pay zakah for one year upon sale, or for the number of years, whether it increased beyond the capital or decreased from it?
A: Land prepared for sale is subject to obligatory zakah if a lunar year passes over it, starting from the intention to sell; because it is from the goods of trade. It is obligatory for its owner to appraise it when the lunar year is completed and pay its zakah, which is: one-quarter of one-tenth of its value estimated at the time zakah becomes obligatory on it, whether it is less than what he bought it for or more. If he does not find the amount of zakah when it becomes obligatory, it remains a debt in his liability until he is able to pay it off. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: I bought land with the intention of developing it and utilizing it for investment. A lunar year passed, and my intention changed to selling it. I offered it for sale, but it did not sell, and I do not have enough cash to pay its zakah based on its value at the time of purchase, even though I
do not guarantee the return of the capital or its increase. How is its zakah to be paid? If I delay the zakah until I find the amount or until it is sold, is this permissible? And do I pay zakah for one year upon sale, or for the number of years, whether it increased beyond the capital or decreased from it?
A: Land prepared for sale is subject to obligatory zakah if a lunar year passes over it, starting from the intention to sell; because it is from the goods of trade. It is obligatory for its owner to appraise it when the lunar year is completed and pay its zakah, which is: one-quarter of one-tenth of its value estimated at the time zakah becomes obligatory on it, whether it is less than what he bought it for or more. If he does not find the amount of zakah when it becomes obligatory, it remains a debt in his liability until he is able to pay it off. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.