Is it permissible to sell a house to a buyer who is a person of the Book, or not?

It is permissible to sell a house to a Kitabi (person of the Book) unless it is known that they will use it for an unlawful purpose, based on the Prophet's (peace be upon him) dealings with the Jews. However, if it is known that the buyer (whether Muslim or Kitabi) will use it for an unlawful purpose, then the sale is not permissible, due to Allah's saying: "And cooperate in righteousness and piety, but do not cooperate in sin and aggression." This includes anything intended for unlawful purposes, such as selling weapons to those who cause discord or renting a house for selling alcohol.