DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Very detailed questions about Zakah on Land

**stoneeZef** · 12-05-2011, 12:38 AM

QUOTE]Assalamu Alaikum Wa Rahmatullah,[/QUOTE]

Akhi.
I read a few points in Umdat As Salik (Reliance of a Traveller) regarding Zakat, I thought I shall share it with you. This is in no way an expert opinion. I m just going quote the sentences from the Translation of the Book.

Q1: In Bangladesh, what most land owners do is hand the land over to a “Builder” (A Real Estate Construction/Development company). No money is exchanged at this stage. Once the builders finish building the full set of apartments, the owners of the land will get 50% of the apartments and the Builders will get the other 50%. The land owner and the builders are then free to do what they will (e.g. sell the apartments individually, rent/lease individually etc.). So literally, no money has exchanged hands during the entire process. In this case, would such a land fall under the definition of stock/merchandise good? Definition of Possession:
zakat land 3.JPG

Also mentioned was:

k7.1 Merchandise is the responsibility of the
seller before the buyer has taken possession (def:
k7.3) of it. If such merchandise is destroyed (Ar.
talifa, to be finished off or used up )by itself or
through an act of the seller, then the agreement is
cancelled and no payment is due for it. If the buyer
destroys such mercnandise, he must pay its price,
and his destroying it is considered as having taken
possession of it.

So what I 'personally' understand is as soon as the the builder finishes the building and the 50% is divided among you and the builder, you become the possessor of the 50% of the building. Till then you are the possessor of the 100% of the land as the transaction with the builder will be complete only after the completion of the Building.

As for the question if the Land/building comes under Zakatable good, see the following:
zakat land 1.JPG
zakat land 2.JPG

Since you have the intention of 'trading' at the time of buying, what i understood from above is that the land is Zakatable.

Allahu Alam.

12-05-2011, 12:38 AM	#2
stoneeZef Join Date Oct 2005 Posts 478 Senior Member	QUOTE]Assalamu Alaikum Wa Rahmatullah,[/QUOTE] Akhi. I read a few points in Umdat As Salik (Reliance of a Traveller) regarding Zakat, I thought I shall share it with you. This is in no way an expert opinion. I m just going quote the sentences from the Translation of the Book. Q1: In Bangladesh, what most land owners do is hand the land over to a “Builder” (A Real Estate Construction/Development company). No money is exchanged at this stage. Once the builders finish building the full set of apartments, the owners of the land will get 50% of the apartments and the Builders will get the other 50%. The land owner and the builders are then free to do what they will (e.g. sell the apartments individually, rent/lease individually etc.). So literally, no money has exchanged hands during the entire process. In this case, would such a land fall under the definition of stock/merchandise good? Definition of Possession: zakat land 3.JPG Also mentioned was: k7.1 Merchandise is the responsibility of the seller before the buyer has taken possession (def: k7.3) of it. If such merchandise is destroyed (Ar. talifa, to be finished off or used up )by itself or through an act of the seller, then the agreement is cancelled and no payment is due for it. If the buyer destroys such mercnandise, he must pay its price, and his destroying it is considered as having taken possession of it. So what I 'personally' understand is as soon as the the builder finishes the building and the 50% is divided among you and the builder, you become the possessor of the 50% of the building. Till then you are the possessor of the 100% of the land as the transaction with the builder will be complete only after the completion of the Building. As for the question if the Land/building comes under Zakatable good, see the following: zakat land 1.JPG zakat land 2.JPG Since you have the intention of 'trading' at the time of buying, what i understood from above is that the land is Zakatable. Allahu Alam.
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