Is it illegal for a homeowner to sell their house by lottery or raffle?
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Is it illegal for a homeowner to sell their house by lottery or raffle?
My home is in the Art Museum area. It is currently appraised at $315,000. The mortgage is $250,000. I think the house is worth more than the current appraisal. It has 4 bedrooms, 3 and 1/2 baths, living room, dining room, solarium, fully equipped kitchen with double stainless steel sink with garbage disposer, refrigerator, dishwasher and gas oven, washer and dryer and roof deck. I am thinking of selling my house via a lottery or contest. Is that legal? Has anyone ever been proxecuted for selling their own home that way?
Asked on March 13, 2017 under Real Estate Law, Pennsylvania
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
Selling a home using a lottery/raffle is legal in many states. However, you can't do it by yourself. The fact is that raffles are considered to be a form of gambling and therefore are only allowed under strict control. Basically, you'll need the assistance of a non-profit organization in order to sell your home using a raffle since most jurisdictions restrict lotteries to certain entities/organizations. For example, non-profit organizations are permitted to conduct raffles to benefit their charitable activities. That having been said, they are also certain tax consequences regarding the raffling off of a home. At this point, you should consult directly with an attorney in your area; they can best advise you further.
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
Selling a home using a lottery/raffle is legal in many states. However, you can't do it by yourself. The fact is that raffles are considered to be a form of gambling and therefore are only allowed under strict control. Basically, you'll need the assistance of a non-profit organization in order to sell your home using a raffle since most jurisdictions restrict lotteries to certain entities/organizations. For example, non-profit organizations are permitted to conduct raffles to benefit their charitable activities. That having been said, they are also certain tax consequences regarding the raffling off of a home. At this point, you should consult directly with an attorney in your area; they can best advise you further.
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