Real Estate Markets and Sales Via Raffles
If you are one of the thousands of homeowners who may be trying to sell your home and not having any luck, you might be wondering is it legal to sell your house in a raffle? The answer is not simple and will vary depending on the state that you live in and the individual requirements that the state has regarding gambling laws.
Raffling a home is fraught with concerns both to the buyer and to the seller of the home. In addition to the tax ramifications of selling a home, there are also legal issues that may be a concern if you decide to raffle your home. In order to successfully raffle a home in your state, there may be some things that you will have to do first.
A) Check the state laws - many states prohibit any type of gambling unless it is done by 501(c)(3) organizations. In order to raffle a home, the homeowner would be required to team up with a charity to run the raffle;
B) Advertising raffles - if the state allows this type of raffle, there must be advertising done so that people will be aware of the raffle. The advertisement may be required to provide specific details such as cost of tickets, number of tickets to be sold (minimum and maximum may be required) and date the drawing is to be held;
C) Legal advice - for those who live in states where a raffle may be legal, it may be prudent to contact an attorney for assistance. In some states, you may also need to work with a real estate agent to handle the end sale. Make sure that you fully understand all of the requirements in your state before you get started.