Is Zakat obligatory on a house that was purchased with the intention of demolishing it and building a new house for residence, with the intention of selling it if a better location is found?
If the homeowner bought the house with the intention of acquiring it, not for trading, then there is no on it, as the Prophet, peace and blessings be upon him, said: "We were commanded to give charity from what we prepare for sale." And if he hesitates between selling it and keeping it for personal use, his hesitation has no effect. However, if he intended to trade in it, the majority of scholars hold that he does not pay zakat on it until he sells it and a year passes on its price. While a group of scholars holds that zakat becomes obligatory on it as soon as the intention of trading is made, and this second opinion is the more cautious one.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Original fatwa ID
- 79862
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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