Question ID: 16025

Assalaamu alaikum Mufti

My mother currently owns her house. My sister now has spent money renovating my mother’s house and she considers it an investment and not a loan and upon my mother’s death / sale of the house she wants to be paid out for her investment in the property.

Please let me know if I have this correct.

Say the house is worth R1 000 000 (valuation done by independent party) before the renovation. My sister spent R50 000 on the renovation and the house is worth R1 100 000 (valuation done again) after the renovation therefore the house increased in value by R100 000. This is 9.09% of the new value of the house. Say when my mother passes away, the house is valued at R1 500 000, then 9.09% of this is due to my sister which is R136 363.64. The remainder of R1 363 636.37 would then be split according to Shariah amongst the heirs as this portion of the house belongs to my mother.

Is this correct?

Also how would she state this in her will / or Islamic Contract?

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Asked on August 14, 2015 9:30 pm
Private answer

If she wants this to happen as stated then this has to be stated in a Shaari legal manner with the inflation sliding scale stipulated.
These hypothetical figures must be turned in words denoting the amount expected at that time. It also must be agreed by the mother in her life time that she owes her daughter x amount of money now and in as re-valuation occurs then that figure increases.
It is however best that the mother pays out her daughter in her lifetime. This will avoid future complications and difficulties.
Also what happens if the daughter passes away before the mother. Kindly act in a sensible cautious manner.

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Answered on August 31, 2015 4:48 pm