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 3 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 3 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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.