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Is There Zakah on Properties Locked in Disputes?

06 November, 2018
Q As-salamu `alaykum. I have a few questions regarding Zakah on properties. The first property I have is a shop which is not in my name yet and also the builders have not finished the construction for the last 2 years. I had bought the shop with the intention of renting it, but because the construction is not over, I am now planning on selling it but it has not been sold yet. Secondly, I have a house for which I have paid the whole amount including the registration charges but the builder is neither completing the construction, nor has done the registration in my name. In fact I am thinking of pursuing court case against the builder. The intention at the time of buying was for renting or selling for profit but I am unable to do anything now. The third property is house which is paid completely and registered also in my name but the construction is just not getting over since many years. In the above scenarios, am I obliged to give Zakah on these properties?

Answer

Prof. Dr. Monzer Kahf
06 November, 2018

Wa `alaykum As-Salamu wa Rahmatullahi wa Barakatuh

In the Name of Allah, Most Gracious, Most Merciful. 

All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.

In this fatwa:

You need to estimate the present value of all these properties on the day of your Zakah and take into consideration the existing disputes in this estimation.

In his response to your question, Prof. Dr. Monzer Kahf, Professor of Islamic Finance and Economics at Qatar Faculty of Islamic Studies, states:

Zakah is due on your wealth with the exception of properties, personal and real, which you and your family use for your own living and convenience.

These properties that you mentioned are all items of wealth which are not for personal and family use.

As a principle, they are subject to Zakah every year as items of wealth and richness. They are locked in dispute and inability to produce any income or fulfill their objectives for you. This is an issue which is considered in the determination of due Zakah and in its due date.

You need to estimate the present value of all these properties on the day of your Zakah and take into consideration the existing disputes in this estimation.

Once the amount of Zakah is determined, its payment maybe delayed until all these issues are solved. The principle is that Zakah due on each property is paid out of it but when you liquidate, you need to pay the due amounts of Zakah on all past years.

 Almighty Allah knows best.

Editor’s note: This fatwa is from Ask the Scholar’s archive and was originally published at an earlier date.