The ruling on one who sells his share in land that has already been sold
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Question:
A man invested in a piece of land with a sum of money. Since the land has been sold and the investment has yielded a profit, but due to my need for a sum of money, I was compelled to sell my investment to another person at a 40% profit, as I am in need. Is my sale to him permissible, or does it contain any element of riba?
Answer:
If he invested in land for the purpose of trade, it is obligatory for him to pay zakah on it every year according to the value of the land. If its value increases, he pays zakah on the increase. If he has spent his capital and there is no increase, he pays zakah on the capital. If its value decreases and it becomes unsold, he pays zakah on its value, even if it is less than the capital, every year.
As for the sale, he is permitted to sell. If he sells, he must pay zakah for the years that have passed if he did not pay zakah every year according to the value of the land. However, he is not permitted to sell it after it has been sold. If it has been sold, he does not sell what he has except for dirhams; he sells for dirhams, not for dirhams. But the sale must take place before it is sold; he sells it to whomever he wishes, and pays zakah for the past years if he did not pay zakah every year according to its value. As for if it has been sold, but he is in a hurry and sells his right for dirhams before it is settled, this is not permissible, because the one who... [sells] the dirhams after it has been sold does not sell the dirhams, but rather he must be patient until he is given his right.
As for if he bought it in order to build a house on it, or to make it a courtyard for himself to store his things in, there is no zakah on it.
A man invested in a piece of land with a sum of money. Since the land has been sold and the investment has yielded a profit, but due to my need for a sum of money, I was compelled to sell my investment to another person at a 40% profit, as I am in need. Is my sale to him permissible, or does it contain any element of riba?
Answer:
If he invested in land for the purpose of trade, it is obligatory for him to pay zakah on it every year according to the value of the land. If its value increases, he pays zakah on the increase. If he has spent his capital and there is no increase, he pays zakah on the capital. If its value decreases and it becomes unsold, he pays zakah on its value, even if it is less than the capital, every year.
As for the sale, he is permitted to sell. If he sells, he must pay zakah for the years that have passed if he did not pay zakah every year according to the value of the land. However, he is not permitted to sell it after it has been sold. If it has been sold, he does not sell what he has except for dirhams; he sells for dirhams, not for dirhams. But the sale must take place before it is sold; he sells it to whomever he wishes, and pays zakah for the past years if he did not pay zakah every year according to its value. As for if it has been sold, but he is in a hurry and sells his right for dirhams before it is settled, this is not permissible, because the one who... [sells] the dirhams after it has been sold does not sell the dirhams, but rather he must be patient until he is given his right.
As for if he bought it in order to build a house on it, or to make it a courtyard for himself to store his things in, there is no zakah on it.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.