I purchased a property for 160,000 pounds, paid 15,000 pounds as a down payment, and the remainder is in installments over two years. How do I pay the zakah, and what is the method of paying zakah in such a case?
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The questioner : May Allah reward you. The questioner, Abu 'Umar, says: I purchased a property for 160,000 pounds, paid 15,000 pounds as a down payment, and the remainder is in installments over two years. How do I pay the zakah? And what is the method of paying zakah in such a case?
The Shaykh : What is the zakah on?
The questioner : On this property. He says: He bought a property for 160,000 pounds and paid 15,000 as a down payment, and the remainder is in installments over two years. Is there zakah on this? And how is the zakah paid?
The Shaykh : Regarding this property, one looks to see if he is a man who buys and sells in real estate, treating the properties as if they were merchandise for merchants.
In that case, it is obligatory for him to pay zakah on the property because it is trade goods.
Or if he prepared the property for profit by renting it out and benefiting from its rent, then there is no zakah on it. Or if he bought the property to live in it, then there is no zakah on it.
As for the remaining balance of the price that is still owed, if he owns it, it is obligatory for him to pay its zakah. If he does not own it, there is no zakah on him.
The Shaykh : What is the zakah on?
The questioner : On this property. He says: He bought a property for 160,000 pounds and paid 15,000 as a down payment, and the remainder is in installments over two years. Is there zakah on this? And how is the zakah paid?
The Shaykh : Regarding this property, one looks to see if he is a man who buys and sells in real estate, treating the properties as if they were merchandise for merchants.
In that case, it is obligatory for him to pay zakah on the property because it is trade goods.
Or if he prepared the property for profit by renting it out and benefiting from its rent, then there is no zakah on it. Or if he bought the property to live in it, then there is no zakah on it.
As for the remaining balance of the price that is still owed, if he owns it, it is obligatory for him to pay its zakah. If he does not own it, there is no zakah on him.