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Property sale proceed

Last updated: 2nd April 2023
Question ID: #8363
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As salaamu alaykum, my father in law owned some shops and a receiver appointed because he wasn’t paying the mortgage. My husband consulted with the receivers and bought the property. He had 20% gifted equity from father in law. Since my husbands ownership of 11 years my father in law has taken the rental income. My father in law sometimes didn’t pay the mortgage on the shops so my husband had to make up the shortfall and borrow money. My husband is now selling the shops and my father in law is saying he is entitled to the full sale proceeds. My husband hasn’t paid income tax and needs to sort this out and pay capital gains tax too. The remaining funds who is entitled to that? I think father in law should get equivalent to 20% gifted deposit of original purchase price deducting the rent he’s taken last 11 years. We do not want to be held accountable by taking someone’s right so please guide us who is entitled to the net sale proceeds. Jazakallah

بسم الله الرحمن الرحيم

الجواب حامداومصليا

As your husband owns the properties and not your father in law, he will be entitled to the sale proceeds.

And Allah knows best

21 Dhul Qa’dah 1444/ 10 June 2023

Answer last updated on:
20th June 2023
Answered by:
Ulamaa ID 04
Location: London