Assalamualaikum,
My maternal grandfather is no more, when he was alive he gave the house to my mother on condition to payoff the debt he had, my father did so, my father is having the letter signed by my maternal aunts and uncles stating they donot have any right in the house and it belongs to my mother. We did not registered the property in my mother's name, now my maternal uncle has forcefully occupied half of the house for the last four years, and he has challeged his legitimacy in the property in the court of justice. My question is, Is it good on our part to give the second half of the house to our uncle who is creating a lots of problem, because we the four children of our parents wants peace, and literally do not want the second half of the house. But my parents are adamant and they want the full house. My parents and my brother are living in the house, and we girls are married. Kindly pass a fatawa on this matter.

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger.

This issue is a matter of dispute, so it must be taken to an Islamic court. In any case, it appears from the question that after your grandfather’s death the mentioned house became the property of his daughter (your mother). If we presume that the grandfather favored his daughter in it, then this gift becomes valid according to the view of the majority of the scholars if the donor died before taking back the gift or being just between his children (in regard to gifting them).

Moreover, you mentioned that your maternal uncles and maternal aunts acknowledged this and renounced their right in writing, and that the mother and her husband paid the debts of the house. Based on this, the mother had really owned the house. None of her brothers and sisters are allowed to go back on this.

As regards the issue of renouncing half of the house as a way of avoiding problems and disputes, and as a kind of keeping ties with kinship and reconciling, then there is no doubt that this is good. Allaah Says (what means): {…and settlement is best. And present in [human] souls is stinginess. But if you do good and fear Allaah — then indeed Allaah is ever, with what you do, Acquainted.}[Quran 4:128]

When commenting on this verse, Shaykh As-Sa’di said: “From the general wording and meaning of the verse, we conclude that reconciliation between those among whom there is a disagreement or a disputed right is better in all cases than each party’s keenness to take all his right from the other, as reconciliation leads to making settlement (between Muslims) and keeping the friendship (between them) and it is a characteristic of tolerant people.”

Moreover, the Prophet said: “Shall I not inform you about what is better than the degree of fasting, praying and giving charity….? It is reconciliation, because spoiling the relations between the kinship is the shaver (the destructive, i.e. that which destroys religion).” [At-Tirmithi, Abu Daawood and Ahmad]

Finally, it should be noted that it is only the owner of the house who may renounce his ownership from it. As far as you and your sisters are concerned, you may only give advice and guide to that which is good.