The issue of when land becomes stagnant and no buyer can be found.
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The Shaykh : There remains an important issue about which many questions have been asked when land becomes stagnant. You know, land once increased greatly in value, so a person bought it during the time of high prices, then it became stagnant and he did not find anyone to buy it, neither for a little nor for a lot. So, is zakah obligatory on him during the period of stagnation or not? Speak?
The attendees: ...
The Shaykh : Yes? Some scholars hold that he owes nothing in this situation, because this is like a debt owed by a person in financial difficulty, in that there is no dealing with it. The owner of the land says, "O people, let someone buy it for a little or a lot," but he did not find anyone. All people are fleeing from real estate, even though it is hoped that things will move in the future, as is the reality. But when it is stagnant, he says there is no zakah in it until he is able to sell it. So when he sells it, we then say to them: do you pay zakah for the time that has passed, or for the year of sale? For the year of sale. And this is, in truth, a facilitation for the community and it is in accordance with the principles, because the man says, "I am not waiting for an increase; I am looking for someone to raise his voice and say, 'Sell it to me,' but I did not find anyone. So what can I do?" And the land itself is not zakatable wealth in its essence, so that we would say zakah is obligatory on its substance. As for the money kept in the bank or in the box in order to buy a house for residence, or to make it a mahr for his wife, for example, it is there. It does not increase, no doubt, but is there zakah in it or not? There is zakah in it. Why? What is the difference between it and stagnant land?
The attendees: ...
The Shaykh : Because zakah on money is obligatory on its substance, whereas zakah on goods is on their value, and their value during stagnation is not attainable, so it is in the position of what? A debt owed by a person in financial difficulty. Yes.
The attendees: ...
The Shaykh : Yes? Some scholars hold that he owes nothing in this situation, because this is like a debt owed by a person in financial difficulty, in that there is no dealing with it. The owner of the land says, "O people, let someone buy it for a little or a lot," but he did not find anyone. All people are fleeing from real estate, even though it is hoped that things will move in the future, as is the reality. But when it is stagnant, he says there is no zakah in it until he is able to sell it. So when he sells it, we then say to them: do you pay zakah for the time that has passed, or for the year of sale? For the year of sale. And this is, in truth, a facilitation for the community and it is in accordance with the principles, because the man says, "I am not waiting for an increase; I am looking for someone to raise his voice and say, 'Sell it to me,' but I did not find anyone. So what can I do?" And the land itself is not zakatable wealth in its essence, so that we would say zakah is obligatory on its substance. As for the money kept in the bank or in the box in order to buy a house for residence, or to make it a mahr for his wife, for example, it is there. It does not increase, no doubt, but is there zakah in it or not? There is zakah in it. Why? What is the difference between it and stagnant land?
The attendees: ...
The Shaykh : Because zakah on money is obligatory on its substance, whereas zakah on goods is on their value, and their value during stagnation is not attainable, so it is in the position of what? A debt owed by a person in financial difficulty. Yes.