Repaying the deceased's debt to the Real Estate Development Fund before fulfilling the will, unless one of the children repays it
Q 1: My father took a loan from the Real Estate Development Fund to build a house, but he died before repaying this loan. Will this loan remain as a liability on my father till it is repaid, or is he considered to be cleared from the debt by his death?
Q 2: If my father is cleared from this loan by his death, will the debt be transferred to the liability of his heirs?
Q 3: The installments continued to accumulate till they reached 22,000 Riyals, and they have not yet been paid by the heirs and the government has not exempted the heirs from repaying these installments. It is important to mention that the government demands that I pay the delayed installments as I am one of the inheritors. It should also be noted that I have an elder brother but he is not willing to participate in repaying them, while the rest of my brothers are still under-age.
Please, give me a detailed answer to the first, second and third questions, then provide me with the proper solution and what should be done regarding this loan and regarding the heirs. May Allah reward you best!
If the case is as mentioned, the debts should be paid from the estate or else the loan is to be transferred to the liability of whoever is able to pay it among the heirs. Those who will be responsible for settling this loan shall later take the money they paid from the estate. However, if no one agrees to do so, the loan should be repaid from the estate itself even by selling the house, the subject matter of this Fatwa, which was constructed through the bank and is mortgaged to the bank until the payment of the debt.
May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.
Date: Muharram 12, 1442 AH
Source: Fatawa Al-Lajnah Ad-Da'imah no. 13052
Shaykh Abdul-Aziz ibn Baz
Shaykh Abdul-Razzaq al-Afify
Shaykh Abdullah ibn Ghudayyan