THE SIGNIFICANCE OF INTENT ON ZAKATABLE REAL ESTATE: A JURISTIC ANALYSIS

Abstract

Real estate remains one of the most significant properties for personal use and investment purposes. Individual institutions and corporate bodies operate on real estate properties. In recent times, there have been several concerns among zakatable individuals and organizations on the shariah criteria for identifying zakatable real estate properties because of the difference between assets for personal use and commercial purposes. There is 'arūd tijārah (commodities for sale) such as real estate, land, car, and goods in real estate investment. On the other hand, 'arūd quniyyah, (durable properties) are intended for personal use such as a private house, private car, private vacation home. This study aims to conceptually analyze the concept of intention in Islam and its juristic interpretations to distinguish between zakatable and non- zakatable real estate properties. This study relies on the inductive approach in gathering and arranging data from classical and modern literature. It also uses the descriptive method in explaining the basic terms in the research. The study found that real estate owners' intent influences the asset's zakat status. First, 'arūd quniyyah (real estate) are durable assets, meant for personal use, are Zakat free, while the real 'arūd tijārah (estate commercial assets) are subject to Zakat. The commercial assets can also be for sale and rental. The study finally suggests that zakat calculations of zakatable real estate should be subjected to supervision and validation of competent contemporary Shariah scholars to ascertain juristic position on the distinctions between zakatable and non-zakatable assets.

Keywords

• : Intention, Real Estate, Zakat, ʽArūd Quniyyah, ʽArūd Tijārah