Q: We purchased a property in the auction in June 2019 (after zakaat calc for that year). We paid the auctioneer 10% commission and 5% deposit. The deposit was transferred to the conveyancing attorney and we further paid the attorney fees and transfer duty (these monies were misappropriated by the attorney). The balance of the purchase price was paid to our attorneys and placed as guarantee to the favour of the seller to be paid on transfer of the property. The property transfer eventually did not materialise due to various issues. The deal was formally cancelled on 11 May 2021, after zakaat calculation for this year.
1. Is zakaat payable on theses monies for the 2020 and 2021 years as we have now received refunds of these monies from the auctioneers and our attorney.
2. Also, monies misappropriated. We are still trying to recover this. What would be the position of zakaat on this?
A: Since the transaction was concluded, the monies no longer belonged to you. Hence, zakaat is not payable on these monies for 2020 and 2021.
And Allah Ta'ala (الله تعالى) knows best.
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