Making use of a house that was built with money earned from alcohol
Question

                What is the ruling on making use of a house that was built with money earned from alcohol, or a car that was bought with the same money?.
Praise be to Allah.Drinking alcohol is a major 
    sin because of the hadd punishment that is prescribed for it in this world, 
    and the stern warnings of punishment for it in the Hereafter. Allaah says 
    (interpretation of the meaning): 
“O you who believe! 
    Intoxicants (all kinds of alcoholic drinks), and gambling, and Al‑Ansaab 
    (stone altars for sacrifices to idols etc), and Al‑Azlaam (arrows for 
    seeking luck or decision) are an abomination of Shaytaan’s (Satan’s) 
    handiwork. So avoid (strictly all) that (abomination) in order that you may 
    be successful”
[al-Maa'idah 5:90]
In Saheeh al-Bukhaari 
    (2295) and Muslim (86) it is narrated that Abu Hurayrah (may Allaah be 
    pleased with him) said: The Prophet  (peace and blessings of Allaah be 
    upon him) said:  “No adulterer is a believer at the time when he is 
    committing adultery; no thief is a believer at the time when he is stealing; 
    no drinker of wine is a believer at the time when he is drinking it.” 
i.e., he cannot be a 
    believer at the time when he is drinking it, and his faith is greatly 
    diminished by this abhorrent action. 
In Sunan Abi Dawood 
    (3189) it is narrated that Ibn ‘Umar (may Allaah be pleased with them) said: 
    The Messenger of Allaah  (peace and blessings of Allaah be upon him) 
    said: “Allaah has cursed alcohol, the one who drinks it, the one who pours 
    it, the one who sells it, the one who buys it, the one who squeezes it 
    (squeezes the grapes, etc), the one for whom it is squeezed, the one who 
    carries it and the one to whom 
    it is carried.” (Classed as saheeh by al-Albaani in Saheeh Abi Dawood, 
    2/700)
What the one who has drunk 
    it must do is hasten to repent sincerely, give it up completely, resolve 
    never to go back to it, and regret what he has done. 
As alcohol is completely 
    forbidden, as we have explained, then selling it is also haraam. The Prophet 
     (peace and blessings of Allaah be upon him) cursed the one who sells it 
    and the one who buys it. 
As for the wealth that 
    comes from dealing in alcohol, that is subject to further discussion: 
1 – If it is still there it 
    must be got rid of, by giving it to the poor and needy, and donating it to 
    charitable causes, because it is impure wealth that is not permissible for 
    the one who acquired it. 
It says in Fataawa 
    al-Lajnah al-Daa’imah (14/61) concerning one who acquired wealth by 
    selling haraam things such as alcohol: 
The Prophet 
     (peace and blessings of Allaah be upon him) said: 
    “O people, Allaah is Good and only 
    accepts that which is good. Allaah commanded the pious to follow the same 
    commandments as He gave to the Messengers. He says (interpretation of the 
    meaning):

    ‘O (you) Messengers! Eat of the Tayyibaat [all kinds of 
    Halaal (lawful) foods which Allaah has made lawful (meat of slaughtered 
    eatable animals, milk products, fats, vegetables, fruits)] and do righteous 
    deeds. Verily, I am Well-Acquainted with what you do’ [al-Mu’minoon 23:51]

    ‘O you who believe (in the Oneness of Allaah — Islamic 
    Monotheism)! Eat of the lawful things that We have provided you with’ 
    [al-Baqarah 2:172]
Then he 
    mentioned a man who has travelled on a long journey and is dishevelled and 
    covered with dust; he stretches forth his hands to the heaven, (saying) “O 
    Lord, O Lord”, but his food is haraam, his drink is haraam, all his 
    nourishment is haraam, so how can he du’aa’ be accepted?” Narrated by Muslim 
    in his Saheeh.
Hence it haraam for the 
    Muslim to deal in haraam things. The one who does any such thing must repent 
    and give up the haraam earnings. There are many permissible ways of earning 
    a living – praise be to Allaah. Allaah says (interpretation of the meaning):
“And whosoever fears 
    Allaah and keeps his duty to Him, He will make a way for him to get out 
    (from every difficulty).
3. And He will provide 
    him from (sources) he never could imagine”
[al-Talaaq 65:2-3]
If a person repents and has 
    wealth that he acquired by haraam means, such as riba and gambling, or 
    selling haraam goods such as alcohol and pork, he must get rid of that 
    wealth by donating it to public projects, such as repairing roads and public 
    washrooms, or he may distribute it to the needy. He should not keep any of 
    it or benefit from any of it because it is haraam wealth in which there is 
    no goodness. Repenting from that means that he must get rid of it and keep 
    away from it, and find another way of earning a living. End quote. 
But if he was a kaafir at 
    the time he sold the alcohol, then he became Muslim, then he does not have 
    to get rid of this wealth, because the Messenger of Allaah  (peace and 
    blessings of Allaah be upon him) did not oblige the Sahaabah to get rid of 
    the haraam earnings that they had when they became Muslim. 
2 – If he has spent the 
    money and used it to build a house or buy a car, then he does not have to do 
    anything except repent. So he should repent to Allaah and make use of the 
    house or car, but he should give a lot of charity and do a lot of righteous 
    deeds. See also the answer to question no. 
    78289. 
And Allaah knows best.