Is compensation permissible for material losses and rents paid for a shop that was leased on the basis that it was commercial, but then it became apparent that it was an investment residence, which prevented its licensing and utilization, and what is the ruling of Islamic law on that?

This issue falls under the purview of judiciary matters, not fatwa (religious edict), and must be referred to the Sharia Court to examine its details, such as the knowledge of the Awqaf agent regarding the type of use of the shops, and the agreement between the tenant and the landlord regarding the fixtures.

General points that can be highlighted are: 1. The aggrieved party has the right to seek compensation. 2. If the tenant is prevented from benefiting from the leased property, they are not obligated to pay the rent. 3. Improvements made by the tenant to the property are borne by the landlord if made with their permission and if they benefit the property. They are borne by the tenant if they benefit the tenant, unless it was stipulated that the landlord would bear the cost.