Zakat on Real Estate
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Fatwa No. ( 18499 )
Q: About fifteen years ago, my father (may Allah have mercy on him) bought a piece of land, then built a single-story house on it for the purpose of living in it. After his passing, my mother used the money she had at the time to build the second floor, but she did not complete it due to a lack of funds. Since then, our lives, livelihood, and education have continued in the area where we live
since childhood, and we have the house we rent there. After we graduated from university, none of us thought about going to complete the construction of the house and settling in it, because if he did so, he would not be able to pay the other heirs the value of their share of the inheritance, especially the female sisters who are with their husbands. Consequently, the idea of selling the house as it is emerged, with each heir taking his right from the Islamic inheritance. However, when we considered this idea of selling, the price at that time was low, and we were not in great need of money. That was about five years ago. My mother said: We can leave it for a period, perhaps its price will increase, and at the same time, perhaps one or some of the brothers can go live in it and give the other brothers their share in cash from the inheritance. The situation continued like this until the sale was completed about a month ago at a price approximately double the price offered about five years ago. The question is: Is zakat on wealth obligatory in this case? And if zakat on wealth is obligatory, is it calculated on the previous old price or on the final price?
A: If the house mentioned was offered for sale during this period, then zakat is obligatory on it to the extent of its value each year. The zakat is on the heirs, each according to his share of the value, if it reaches the nisab or more. And whoever’s share does not reach the nisab
owes no zakat. If the house was in a state of hesitation between being sold and remaining as real estate owned by the heirs during this period, then there is no zakat on it unless it is rented out. In that case, each heir owes zakat on his share of the rent if it reaches the nisab and a lunar year has passed over it. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: About fifteen years ago, my father (may Allah have mercy on him) bought a piece of land, then built a single-story house on it for the purpose of living in it. After his passing, my mother used the money she had at the time to build the second floor, but she did not complete it due to a lack of funds. Since then, our lives, livelihood, and education have continued in the area where we live
since childhood, and we have the house we rent there. After we graduated from university, none of us thought about going to complete the construction of the house and settling in it, because if he did so, he would not be able to pay the other heirs the value of their share of the inheritance, especially the female sisters who are with their husbands. Consequently, the idea of selling the house as it is emerged, with each heir taking his right from the Islamic inheritance. However, when we considered this idea of selling, the price at that time was low, and we were not in great need of money. That was about five years ago. My mother said: We can leave it for a period, perhaps its price will increase, and at the same time, perhaps one or some of the brothers can go live in it and give the other brothers their share in cash from the inheritance. The situation continued like this until the sale was completed about a month ago at a price approximately double the price offered about five years ago. The question is: Is zakat on wealth obligatory in this case? And if zakat on wealth is obligatory, is it calculated on the previous old price or on the final price?
A: If the house mentioned was offered for sale during this period, then zakat is obligatory on it to the extent of its value each year. The zakat is on the heirs, each according to his share of the value, if it reaches the nisab or more. And whoever’s share does not reach the nisab
owes no zakat. If the house was in a state of hesitation between being sold and remaining as real estate owned by the heirs during this period, then there is no zakat on it unless it is rented out. In that case, each heir owes zakat on his share of the rent if it reaches the nisab and a lunar year has passed over it. 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.