Real Estate Whose Owner Hesitates Between Selling and Not Selling
Machine translationRead the Arabic original
Fatwa No. ( 20668 )
Q: We present this inquiry regarding the topic of zakah to your attention, as follows: 1- We and our partners own a piece of land, which was offered for sale and zakah was paid on it in previous years, with each partner paying zakah from his own share. 2- A year ago, we agreed with another party to build on the land, whereby they would fully fund the construction. The project actually began, the land was excavated, and some other work was done, but due to the second party’s delay
in the construction schedule, the contract was terminated and they were compensated for the work they had done. 3- The land is still offered for sale, and there are two options: A- Sell the land as it is, after it has been excavated and prepared. B- Build the land with apartments or hotels, such that one of the following three things is done: • It is rented out entirely. • It is operated as a hotel. • The project is sold entirely. 4- We also own another piece of land that is being prepared by breaking up the mountain and similar work, and its preparation will cost approximately half the value of the land. Its situation is similar to the first land in terms of intention, and the summary is that the goal of buying these two pieces of land is to seek appropriate profit, whether it comes through selling it to a buyer for an acceptable amount, or through building it and investing in it by renting or selling. We ask your eminence to guide us on the correct way to pay zakah on this land.
A: Since you are hesitating about these two pieces of land whether to sell them or develop them – there is no zakah on them; because zakah is only obligatory on what is prepared
specifically for sale. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: We present this inquiry regarding the topic of zakah to your attention, as follows: 1- We and our partners own a piece of land, which was offered for sale and zakah was paid on it in previous years, with each partner paying zakah from his own share. 2- A year ago, we agreed with another party to build on the land, whereby they would fully fund the construction. The project actually began, the land was excavated, and some other work was done, but due to the second party’s delay
in the construction schedule, the contract was terminated and they were compensated for the work they had done. 3- The land is still offered for sale, and there are two options: A- Sell the land as it is, after it has been excavated and prepared. B- Build the land with apartments or hotels, such that one of the following three things is done: • It is rented out entirely. • It is operated as a hotel. • The project is sold entirely. 4- We also own another piece of land that is being prepared by breaking up the mountain and similar work, and its preparation will cost approximately half the value of the land. Its situation is similar to the first land in terms of intention, and the summary is that the goal of buying these two pieces of land is to seek appropriate profit, whether it comes through selling it to a buyer for an acceptable amount, or through building it and investing in it by renting or selling. We ask your eminence to guide us on the correct way to pay zakah on this land.
A: Since you are hesitating about these two pieces of land whether to sell them or develop them – there is no zakah on them; because zakah is only obligatory on what is prepared
specifically for sale. 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.