• 2022-07-20

Saturday 01 Shawwal 1442

Corresponding to 3/15/2021

From the publications of the Media Department of the Al-Rakhaa Association for Businessmen

*From the jurisprudence of zakat on real estate property*

It is known that real estate today is in a different situation from the previous one in terms of popularity and demand, and it has different situations in which the ruling on zakat differs.

Real estate: It means what a person owns of land, and the facilities on it, such as: houses, palaces, buildings, apartments, shops, gas stations, rest houses, and the like.

To elaborate on the discussion of zakat on real estate, it is said:

1. The general rule in this section is that real estate is not zakatable property, and therefore the principle is that zakat is not obligatory on it unless it is for trade.
2. Real estate that a person takes for residence or for any personal use, such as a warehouse and the like, there is no zakat on it, according to the consensus of the scholars.

Whether the intention to acquire property was present at the time of purchase, or occurred after that, the mere intention of acquiring the property for personal use makes it non-zakatable money, even if it remains for many years, as long as the intention of the owner has not changed from this intention.

3. There is no zakat on agricultural land, but zakat is only due on crops and fruits.

But if he buys land for trade, and plants it until he sells it, and the palm trees produce and the crops grow, then he pays zakat on the fruit and love: zakat on the tenth, and zakat on the land: zakat on value; Because they are two rights, the reason for their obligation differs, so one does not fall into the other.

Zakariya al-Ansari said: “If you sow crops for cannibalism on a land for trade, then for each of them there is a ruling, then the crop is obligatory for you.

4. Real estate that a person owns with the intention of exploitation, i.e. to rent it out and benefit from its proceeds and yield: there is no zakat on its value, but zakat on the rent collected from it if one year has passed. Housing, warehouses, furnished apartments, hotels and buildings: All of these real estate if prepared for rental: there is no zakat on it according to the common scholars. He does not have to evaluate this property every year and pay zakat on it.
5. Real estate that a person owns with the intention of trading: Zakat is obligatory according to the general scholars. What is meant by the intention of commerce is to intend by owning this property to earn from it and to make a profit. Al-Mardawi said: “The meaning of the intention to trade is to make money by making money for it.”

As for the mere desire to sell, it does not necessarily make it one of the offers of trade. Because selling commodities has many purposes, such as getting rid of the commodity, or sometimes not wanting it, or the existence of financial hardship, and the like. As for trade, it is selling with the intention of earning and profiting from it.

Sheikh Ibn Uthaymeen mentioned that if a man had land that he had bought and wanted to build on it, then he abandoned this intention and intended to sell it because he did not need it, or if a person had land and needed it, so he intended to sell one of it to pay his need, so he said: “He does not have to pay zakat, not in this case.” Nor in the one before it, because he did not intend to sell here for trade, but he intended it in the first issue because he did not need it, and in the second issue he intended it because he needed its value, unlike the owner of the offers, he is waiting for a profit, so he originally only wanted it to be for trade.

6. If he owns the property and is not sure with the intention of trading, or he does not have a specific intention, then there is no zakat on it. Al-Qarafi said: “If he buys and he has no intention, then it is for possession, because it is the principle.”

Sheikh Ibn Uthaymeen, may God have mercy on him, was asked: A man has land and his intentions differ in it, and he does not know whether he is selling it, building it, renting it, or inhabiting it.

He replied: “There is no zakat on this land at all, as long as he does not have a definite determination that it is trade, so there is no zakat on it because he is hesitant, and with hesitation even if one percent does not have to zakat.”

7. If he owns the property for possession and housing, and then intends to trade it after that, then there is a difference of opinion regarding the obligation of zakat.

8. If he owns the property with the intention of trading, then changes his intention and intends to acquire, use or rent it, then there is no zakat on it.

Because the condition of the intention is to accompany it until the end of the year, and if he changes his intention before the end of the year, then the zakat is waived.

Al-Nawawi said: “If he intends to possess it with the money of commerce that he has, then it becomes a possession by agreement.”

9. If he owns the property for possession with trade, or for trade with possession, then what matters is the principle of ownership. Whoever acquires a commodity with the intention of using it, and intends accordingly that if he finds a profit on it, sells it, then there is no zakat on it. Selling it: Zakat is due on it every year until it is sold. Likewise, if he intends to use and benefit for a specific period before selling: Zakat is due on the goods, because Because the intention to use first does not negate the fact that it is an observatory of trade.
10. If the property is still in the construction and construction stage - and it is for trade -

The opinion of the legal advisor to the Association of prosperity d. Osama Abu Bakr is not obligated to zakat, because at a stage it was not “purified” as a commodity ready for trade and sale, and the assessment of construction (bone) is often unfair, and construction does not benefit at this stage.

It was mentioned in the hadith (there is no charity in the factors), and the factors are: the cattle that work in such as irrigating water, carrying goods and plowing.

Likewise, they are the tools used in construction, agriculture, and industry, and this applies - to me - unless it is done and becomes ready for use.

11. The property in which the owner is waiting for high prices: Zakat must be paid on it every year according to its value, even if there are years. Buying the property with the intention of profiting from it in the distant future: Zakat is not waived from it. And from it buying schemes far from the country waiting for the time of people’s desire for it and its high price: this is The future intention to sell the land is subject to zakat, and there is no effect on postponing the intention to sell, as long as the land is set aside for trade, and the purpose of it is the growth of money.
    And the opinion of the legal advisor to the Association of prosperity d. Usama Abu Bakr: The rule that I follow in such cases;

Is the property placed in the (supply and demand market)?

If it is placed with brokers and real estate offices, and it is searched in different locations and with different parties for a buyer, then it is; He is required to pay zakat

As for the one who laid the land, waiting for the organization to reach it, for example, or waiting for a partner to enter with him, or waiting for money to be available for him to sort it out.

He did not present it for several years, as there is no zakat on it during this period

12. Real estate that the owner buys with the intention of saving money: There is no zakat on it unless he intends to escape from zakat.
13. If he buys commercial real estate and does not take possession of it until one year has passed on the money with which he bought it, then zakat is due on it, because Because the property is transferred to the buyer as soon as the contract is concluded, and the acquisition is possible for him.

Sheikh Ibn Uthaymeen - may God have mercy on him - was asked: A man bought a land prepared for trade with an amount of money, knowing that this man has not received the land yet, not even the deed of it, so does he have to pay zakat?

He replied by saying: Yes, he has to pay zakat on this land, even if he did not receive the deed, as long as the sale has been proven and is obligatory, so he should pay zakat on it for trade goods.

So he evaluates it when zakat becomes due, and takes out a quarter of a tenth of its value.

And the opinion of the legal advisor to the Association of prosperity d. Osama Abu Bakr: If he buys a commercial property, and does not take possession of it, and a year has passed on him

How can we demand zakat from him, when his possession of this property is incomplete?!

Among the conditions for the obligation of zakat is; What the jurists have stated: that the ownership over the money is “complete”, and if the possession is “deficient”, the zakat is not required.

And complete ownership: to own the neck, and to dispose of.

Whoever owns the neck only, and does not have the right to dispose of the money, then he does not have to pay zakat

And the one who did not take possession of the property does not have the right to dispose of it, so he does not have to pay zakat.

14. Mortgaged real estate: Zakat is due on it if it is intended for trade.

Sheikh Ibn Baz said: “If you prepared it for trade and it is mortgaged, then you must pay zakat on it, and if it was mortgaged and it was not for trade, but it was mortgaged until you paid him his right, and if you paid him it is for housing or for rent, this does not have zakat.”

And the opinion of the legal advisor to the Association of prosperity d. Osama Abu Bakr: Mortgaged real estate, follows the same point as the previous one, lack of property, so if I am not able to dispose of the property, then I do not have to pay zakat on it.

15. The partners in the ownership of the property pay zakat on each one of them for his share if he has reached the quorum in front of the public.

Sheikh Bakr Abu Zaid said: “Partners in a property condition that zakat is obligatory on each one of them, that the value of his share of the property reaches the nisab in himself, or by adding it to money for which he has another zakat from cash and trade offers.” If the value of the property reaches the nisab, then each one of them must pay zakat, even if his share does not reach the nisab.
If it is among a group of people (a company) in a real estate or real estate, then the zakat on the company - with its legal personality -

The company has become an independent personality, with a name, address and reference

The claimant of zakat is the company, not the notables of the partners.

16. Real estate endowed on public charitable causes such as the poor: there is no zakat on it; For the king's absence.
17. Is there a difference in zakat between real estate that is common and that is not, as long as it has a value for which it can be sold?

The view of the majority of scholars is that zakat is due on it. Because the consideration on which the obligation of zakat is based on trade goods is based on that it is money that is monitored for growth, like money, whether it actually grows or not, and whether you win or lose.

There is no effect of recession in the zakat chapter as long as the offers have a real market value, and they can be bought and sold.

And in the Fatwas of the Standing Committee, the land offered for sale is obligatory for zakat every time one year is completed on it, because it is one of the trade goods, and its value is estimated at what is equal to the new year, and a quarter of one tenth comes out of it, whether it is common or stagnant, because of the generality of the evidence for the obligation of zakat on what is prepared for sale and trade.

Sheikh Abd al-Rahman al-Barrak said: “Depression in real estate has no effect on the loss of zakat, but rather on the decrease in the amount of zakat.

But if the property is damaged so that its owner is offering it for sale and he cannot find anyone to buy it from him, then some of the scholars said that he should pay zakat on it if he sells it for one year.

And the opinion of the legal advisor to the Association of prosperity d. Osama Abu Bakr: If the property is stagnant, no one asks for it at any price, then there is no zakat on it

Especially if the general economic condition of the country is low, and therefore it is not called this way.

18. On real estate contributions, zakat should be paid on trade goods, because these real estate companies buy land with the intention of trading in it.

At the end of his year, the shareholder must value his shares in this company by what they are equal to, and pay zakat on it, a quarter of a tenth.

19. Seized real estate and distressed real estate contributions: There is no zakat on them, and it comes under the rule of “damar money.”

So the land that is confiscated in the plans, such as facilities, schools and so on, and its owner is prohibited from disposing of it, unless the official authority decides not to want it, then there is no zakat on it until after enabling its owner to dispose of it, so he receives zakat on it a year from the date of enabling him to dispose of it.

Likewise, faltering real estate contributions: the cause of the default may be due to fraud from the company’s management, and the reason may be obstacles in the state’s regulations, or due to the existence of discounts or entitlements on that real estate, and whatever the case, the real estate contribution that the owner cannot dispose of: no zakat In which .

20. At the end of the year, the property is valued in the market at the time of the year, and it may be less than or more than the purchase price.
21. With regard to real estate on which zakat is due, the calculation of the year does not start from the time of the purchase of the property, rather it is around the money with which he bought it. This is the opinion of the majority except for the Hanafis. As for the Hanafis, they say that a person’s turn is that since he is the owner of the nisab, and the sum of what he has is more than the quorum at the end of the year (the year), regardless of whether it decreases or increases during the year, then he pays zakat on the sum of what he has at the end of the year, and this facilitates the people. Because it is difficult for the merchant or the payer to calculate one year for each money he received.

God knows

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Review and comment of the legal advisor to the Association of prosperity d. Osama Abu Bakr.

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