Is Zakat legally obligatory on the proceeds from selling a villa that had been offered for sale for three years to pay off debts, knowing that the amount is not enough to pay off the entire debt, and is it permissible to give Zakat and forsake the rights of the creditors?

Zakat (definition) is not obligatory on the price of the villa unless it reaches the nisab (definition) (minimum threshold) by itself, or by combining with other money or trade goods, and a full hawl (lunar year) has passed over it, and you do not have a debt that would reduce this amount below the nisab. Similarly, zakat on trade goods is not obligatory on it, because the intention behind building it was for personal use and dwelling, not for trade. This is the view of the majority of jurists. Money that is fully consumed by debt or falls below the nisab is not subject to zakat.