Zakaat on a house or car purchased for resale but in the person’s use

Q: A person purchased a car or house with the intention of resale. Since he does not have any other mode of transport or residence, he is using the purchased car or house till he finds a buyer. Will zakaat be fardh upon the house and car?

A: In principle zakaat is fardh upon those things which are purchased with the intention of resale. However, in the above mentioned situation, since the person does not have any other mode of transport or residence, zakaat will not be fardh on the house and car. This law will apply to all those things which relate to the hawaaij-e-asliyyah of insaan (the basic needs of man without which living becomes difficult).

(ما لم تكن العلوفة للتجارة) قيد بالعلوفة لأن العوامل لا تكون للتجارة وإن نواها لها كما في النهر أي لأنها مشغولة بالحاجة الأصلية (رد المحتار 2/282)

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)

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