Buying land on installment: Is zakat due?
Machine translationRead the Arabic original
Q: I bought a piece of land and paid a small portion of the value in cash, with the rest in monthly installments of 3,000 riyals each month for a period of seven years. I have paid the installments for two years, and the remaining installments are for five years. I intend to sell it after paying it off and buy a piece of land of lower value, then add the remaining amount from its value to build a villa that I can benefit from or sell for a profit and build another one. I currently own a house in which I live, and the land has not yet been registered in my name, nor am I able to sell it now. Please review the attached contract: is there zakat on it or not? Please clarify this. May Allah reward you.
A: If the situation is as you described, then zakat is not obligatory on you for
the land mentioned, because your ownership of it has not become stable. If your ownership becomes stable, then zakat becomes obligatory on it after the completion of a lunar year from the stability of ownership, provided that the intention to sell continues.
A: If the situation is as you described, then zakat is not obligatory on you for
the land mentioned, because your ownership of it has not become stable. If your ownership becomes stable, then zakat becomes obligatory on it after the completion of a lunar year from the stability of ownership, provided that the intention to sell continues.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.