Question:

A brother is in the process of buying a house to live in. He is in rented accommodation at the moment. He has cash and has signed the papers to buy the house. He only signed today. It will now take some time to complete. His zakaat year date is 1st Ramadhaan. Does he take out zakat on the cash money in his possession even though it is for the payment toward the house he has intended and signed to buy.

The Fatwa

In the Name of Allah, the Most Gracious, the Most Merciful

The Answer

The Fiqh of the Answer

As a principle, Imam al-Atqānī (d.758 AH) states that Zakat is only obligatory on wealth over which a person has complete ownership. If ownership is incomplete and there is some deficiency in the rights of ownership, Zakat will not be due[i]. Zakat is the highest form of obligation on wealth, and its obligation requires the highest level of control, autonomy and authority before its obligation.

In addition, Zakat follows an underlying principle in the Shariah in that Zakat only becomes due when one enjoys complete benefit of wealth. Complete benefit of wealth is gained with Raqabah (legal ownership) and Yadd (control, authority and autonomy to spend and use), and it is these two factors which are critical for Zakatable assets to be subject to Zakat. The obligation of Zakat without having the benefit and ability to control the wealth would be burdensome. Hence, Ibn Māzah (d.616 AH) states that Zakat has been made obligatory with Taysīr (ease)[ii].

It follows from the above that Zakat is only obligatory on those who are considered wealthy according to the Sharīʿah. The Sharīʿah has set the Niṣāb as the threshold to determine whether a person qualifies as wealthy or poor. This assessment is based solely on owning Zakatable assets.

A debt owed to creditors represents a claim against one’s assets and is therefore not truly owned by the debtor. Consequently, this portion of wealth is excluded when calculating Zakatable assets [iii]. If it is a debt where creditors have the right to demand payment, Zakat will not be payable. However, if it is a responsibility without a specific individual who can claim it, Zakat will still be due. For instance, if someone owes money as a Kaffārah, this is a personal obligation, but since no one can demand its payment, Zakat will still be applicable on that amount[iv].

Imam al-Atqānī (d.758 AH) clarifies why the Fuqahā’ have set the condition that only demandable debts affect Zakat. He explains that such debts create a deficiency in ownership, reinforcing the principle that Zakat is only due on fully owned wealth. However, if an obligation exists without a claimant, it does not diminish ownership in the same way. As a result, Zakat remains due[v].

In commercial transactions, the contracting process varies depending on the nature of the trade. For everyday purchases—like items from a supermarket—a sale agreement is concluded instantly. However, in larger or more complex transactions, parties often begin with a Memorandum of Understanding, Term Sheet, or similar document outlining the key terms, serving as a preliminary agreement before any binding contract is executed or ownership is transferred.

Mufti Muhammad Taqi Usmani references the above as Bay‘ Mutlaq (an immediate sale) and Ittifāqiyyat al-Bay‘ (an agreement to sell) in Fiqh al-Buyū’. An immediate sale occurs when ownership transfers instantly upon offer and acceptance, commonly seen in retail transactions. On the other hand, an agreement to sell is a contractual commitment where the actual transfer of ownership is deferred until certain conditions are met, such as completing legal formalities or making payments in instalments. Buying a home falls under the agreement to sell category, as the ownership does not transfer immediately upon making an offer or signing an initial contract. Instead, the process involves legal checks, financial arrangements, and fulfilment of conditions before the final transfer occurs[vi].

When it comes to purchasing a home, after your offer on a house is accepted, the solicitor drafts a contract detailing the sale terms. Both parties review and negotiate these terms. Once all inquiries are addressed and financing is secured, both parties sign final copies of the contract and exchange them, making the agreement legally binding. Following this, you transfer the deposit to the seller. The final step is completion, where the remaining purchase price is paid, and ownership is officially transferred to the buyer[vii]. Therefore, the process of buying a home differs significantly from that of a typical purchase. In most cases, a purchase is completed almost instantly, with ownership transferring immediately. However, when it comes to buying a home, various legal procedures cause a delay in the transfer of ownership.

A monetary deposit held for a property completion, while not yet legally binding, can be considered Dayn Ḥukmī, as it is ringfenced for a pending obligation that is highly likely to materialise. As far as the individual is concerned, he is committed to the transaction and is working towards completion, making the payment all the more likely. Similarly, approximately 70-80% of property sales go through after an offer is accepted, thus, there is Galabah al-ẓann (a strong probability) that the sale will be completed, making this debt a near certainty. The transaction is already in progress, with commitment from both parties.

This concept aligns with the principle of al-Dayn al-Mawʿūd (a promised debt) discussed by Imam al-Marghīnānī (d.593 AH). He explains that if a person pledges an item as a guarantee in exchange for a promised loan, and the item is destroyed before the loan is issued, the creditor will be obligated to give the agreed loan amount, treating the promised debt as if it already exists[viii].

Imam al-Bābartī (d.786 AH) explains that a promised debt is treated as a real debt when there is a need. He elaborates that one party may require a loan, while the other possesses the funds but seeks assurance of repayment. In such a case, since there is a genuine need, the promised debt is regarded as an actual liability. He further clarifies that this was employed as a ḥīlah (legal stratagem) to facilitate the transaction and prevent hardship for the borrower[ix].

Ḥāfiẓ al-Dīn al-Nasafī (d.710 AH) and Mulla ʿAlī al-Qārī (d.1014 AH) explain that a promised debt is treated as a real obligation because a promise is generally upheld, as people tend to follow through with their commitments[x]. As a result, a promise often leads to the fulfilment of what was pledged. In the Mas’alah at hand, since a Muslim is expected to honour their word, the pending liability can be treated as an existing liability. This principle aligns with a legal maxim cited by ʿAlī Ḥaydar (d.1353 AH), which states that legal recognition can be afforded to that which is Aglab (very likely to occur) rather than what happens only occasionally[xi].

Thus, the agreement between the buyer and vendor in a house purchase can fall under an Agreement to Sell, meaning that while ownership has not yet transferred, both parties have made a firm commitment to complete the transaction. This commitment gives rise to the concept of al-Dayn al-Mawʿūd, as the buyer has effectively pledged to pay, and the seller has pledged to transfer ownership. Since this agreement creates a pending financial obligation that is expected to materialise, the deposit money set aside can be treated as a promised debt with legal standing rather than mere disposable wealth. Applying the maxim mentioned by ʿAlī Ḥaydar, while there is a small possibility that the sale might fall through, legal weight is given to what is most likely to happen. Since the probability of completion is high, the transaction is treated accordingly, and the promised debt is granted legal recognition. 

And Almighty Allah Alone Knows Best

Maulana Inaamul Hasan Chothia
Trainee Mufti

Reviewed and approved by
Mufti Faraz Adam
Darul Iftaa Muadh ibn Jabal
www.darulfiqh.com 

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[i] قوله : (إِذَا مَلَكَ نِصَابًا مِلْكًا تَامًا) ، اخترازُ عَن المُلْكِ النَّاقِصِ ؛ حَيْثُ لَا تَجِبُ فِيهِ الزَّكَاةُ ، كَالمَبِيعِ قَبْلَ القَبْضِ لَا زَكَاةَ فِيهِ ؛ لِأَنَّ تَمَامَ المَلْكِ لَمْ يَوجَدْ ؛ بِدليلِ أَنَّ المُشْتَرِي لَا يَجُوزُ تَصرُّفُه قَبْلَ القَبْضِ. (غاية البيان نادرة الزمان في آخر الأوان)

[ii]  والدليل عليه أن الزكاة وجبت بطريق التيسير (المحيط البرهاني)

[iii] تحقيقه : أَنَّ الزَّكَاةَ إِنَّما تجب في المال في الفاضل عن الحاجة ؛ لِأَنَّهَا تَجِبُ على الأغنياء، والغنى إنَّما يتحقَّقُ بِالمالِ الفاضل ، ومالُ المَدْيُونِ ليسَ بِفاضل ، فلا يجبُ فِيهِ الزَّكَاةُ ، كَما في ثياب البِذْلَةِ وَالمَهْنَةِ وَغَيْرِهِما .( غاية البيان نادرة الزمان في آخر الأوان)

[iv] اعلمُ : أَنَّ الدَّيْنَ إِذَا كَانَ يُطالَبُ بِهِ مِن جهةِ العِبَادِ ، يَمْنَعُ الزَّكَاةَ بِقَدْرِ الدَّيْنِ ، ويُزَكَّى الفَاضِلُ عَنِ الدَّيْنِ ، إِذا بَلَغَ نِصَابًا. (غاية البيان نادرة الزمان في آخر الأوان)

[v] أما عموم النصوص : فقَد خُصَّ مِنْهَا أَشياءُ : كَثِيابِ البِذْلَةِ وَالمَهْنَةِ، ومال المُكَاتَبِ ، فَيُخَصُّ المُتَنَازَعُ بِالقِيَاسِ ، وَإِنَّمَا شَرَطْنَا أَنْ يَكُونَ الدَّيْنُ يُطَالِبُ بِهِ مِن جهة العباد ، مثل : ثَمَنِ المَبِيعِ والأَجْرِ والمَهْرِ؛ لِأَنَّهُ يَؤثر في نقصانِ المَلْكِ، بخلاف ما إذا لَمْ يَكُنْ ؛ بحيثُ يُطالَبُ بِهِ مِن جهةِ العِبادِ، كَدَيْنِ النُّذُورِ، والكفارات ، وصدقة الفِطْرِ ، ووجوب الحج ؛ فإنَّها عِبَادَةٌ لا يُطالب بها آدَمِيٌّ كَالصَّلاةِ ، ثمَّ لَا فَرْقَ بين أَن يَكُونَ الدَّيْنُ حالا أو مؤَجَّلًا . (غاية البيان نادرة الزمان في آخر الأوان)

[vi] البيوع في التجارة المعاصرة تعقد بطريقين:

الطريق الأول: البيوع التي تنجز في الحال بالإيجاب والقبول شفاهاً، أو كتابة، وينتقل بها ملك المبيع إلى المشترى فور تمام الإيجاب والقبول، ولا يتوقف ذلك على أمر آخر. وهذا بيع عادي يجرى عليه جميع أحكام البيع. وإن هذا الطريق هو المتبع عادة في البيوع على القطاعي، وفى بيوع الجملة التي لا تحتاج إلى إجراءات طويلة.

الطريق الثاني: أن يتفق الطرفان على البيع، ولكن لا ينجزانه في الحال، بل يتوقف إنجاز البيع على أمور تحدث في تاريخ لاحق. وإن هذا الطريق يحتاج إليه عادة في البيوع التي تحتاج إما في الحالات التي تشترى فيها كمية كبيرة من السلع، ويحتاج البائع لتوفيرها إلى وقت، وإما في الحالات التي تحتاج إلى إجراات رسمية، مثل بيع العقارات. (فقه البيوع)

[viii] (لأن الموعود جعل كالموجود) ش: في حالة عقد الرهن م: (باعتبار الحاجة) ش: فإن الرجل يحتاج إلى استقراض شيء، وصاحب المال لا يعطيه قبل قبض الرهن، فيجعل الدين الموعود موجودا احتياطا للجواز دفعا للحاجة عن المستقرض. (البناية شرح الهداية)

[ix] وَقَوْلُهُ لِأَنَّ الْمَوْعُودَ يَعْنِي مِنْ الدَّيْنِ جُعِلَ كَالْمَوْجُودِ بِاعْتِبَارِ الْحَاجَةِ، فَإِنَّ الرَّجُلَ يَحْتَاجُ إِلَى اسْتِقْرَاضِ شَيْءٍ وَصَاحِبُ الْمَالِ لَا يُعْطِيهِ قَبْلَ قَبْضِ الرَّهْنِ فَيَجْعَلُ الدَّيْنَ الْمَوْعُودَ مَوْجُودًا احْتِيَالًا لِلْجَوَازِ دَفْعًا لِلْحَاجَةِ عَنْ الْمُسْتَقْرِضِ (العناية شرح الهداية)

[x] إذ الظاهر أن الخلف لا يجري في الوعد، فكان مفضيا إلى الوجود غالبًا. (الكافي، فتح باب العناية)

[xi] إنما الفرق هو أن الأظهر أن الإنسان لا يخلف وعده وأن الوعد المذكور يؤدى ويحمل على الوجود غالبا، والاعتبار للغالب التابع وليس للمغلوب النادر (درر الحكام شرح مجلة الاحكام)