A person passes away before completing house payments

If a person buys a house for someone and an agreement has been made that the latter will pay the former on monthly installments, if the former passes away before collecting all of the payments, what shall be done about the remaining payments?

 بسم الله الرحمن الرحيم

الجواب حامدا ومصليا ومسلما

Since the deceased had debts to collect when he passed away, the debts will now be collected by his heirs. If the deceased had initially bought the house and then sold it to his companion and the agreement was made that the debt will be paid off in installments, the debt will still be paid off as agreed and the heirs may not force him to pay off the full debt immediately.

However, if the deceased had simply loaned his companion money to buy the house and it was agreed that the loan will be paid off on installments, the heirs may demand that the debt be paid off instantly. However, it is better for them to uphold the original contract.

 The Messenger of Allah (may Allah bless him and give him peace) has said, “Whoever gives respite to a needy person or reduces a debt, Allah subhanahu wa ta’ala will grant him shade under His throne on the Day of Judgment, the day when there will be no shade other than His shade.” (Tirmizi)

والله اعلم

Allah Knows best.

Approved by: Mufti Husain Ahmad Madani