If a Musi still has an outstanding mortgage loan on a property and owns only a portion of it, what Hissa Jaidad is due?

Regulation 9 under the Assessment Procedure in the Wasiyyat Rules states:

“Payment of Hissa Jai’dad on all mortgaged properties shall be obligatory. This may be paid in two ways:

(i) If a Musi wishes to pay the Hissa Jai’dad on a mortgaged property in his lifetime, the property will be assessed according to the market value and the outstanding amount of the mortgage will not be deducted from the assessed value.

(ii) If Hissa Jai’dad has not been paid on a mortgaged property in a Musi’s lifetime, after his/her demise it will be payable only on the amount which is determined after deducting the outstanding amount of mortgage from the assessed value of the property.”

In light of the above rule, there are only two ways to pay Hissa Jaidad on a property acquired through a mortgage:

a) If a Musi wishes to pay Hissa Jaidad during their lifetime, the property is assessed at its current market value, and the outstanding mortgage amount is not deducted, because a loan is not taken into consideration while a person is alive.

Once the Hissa Jaidad has been paid in full, no additional Hissa Jaidad will be due on any future appreciation in the value of that property.

b) If a Musi does not pay Hissa Jaidad during their lifetime, then upon their demise the estate is settled in the following order: first, all outstanding debts are paid; second, the Wasiyyat is fulfilled; and finally, the remaining estate is distributed as inheritance. In such a case, the remaining mortgage balance is first deducted from the property’s value, and Hissa Jaidad is then calculated and paid on the remaining value — in other words, on the equity in the property at the time of the Musi’s demise.