What is the ruling on disposing of a sum of money (320,0 EGP) received as compensation for a delay in paying the price of land, given that it was agreed to mortgage cars to the buyer and rent them for a certain amount in case of delay? Is this amount lawful or unlawful, and is it permissible to donate and give charity from it or to give a portion of it to needy relatives?

A penalty clause in debt is not permissible, and obligating a late debtor to pay an increase on the debt is prohibited usury (riba). Therefore, it is not permissible to benefit from the excess amount; rather, it must be returned to the debtor. You are only entitled to the principal amount of the debt. If the debtor refuses to pay, the collateral is sold to settle the debt if the debtor permits it. Otherwise, the matter is referred to the judiciary to rule on the sale of the collateral.