Raffling off a house may seem like a creative solution for selling real estate, especially in a challenging market, but it’s far more complicated — and often illegal — than it appears. In many states, including California, raffling a home without complying with strict gambling and charitable solicitation laws can result in hefty fines or criminal charges. These giveaways are often considered illegal lotteries unless they benefit a registered nonprofit organization, and even then, they must follow specific regulations including disclosures, registration, and detailed accounting. Legal experts warn that attempting to skirt these rules by calling a raffle a “contest” or “sweepstakes” doesn’t exempt it from scrutiny. Contestants would need to demonstrate skill and not just luck—for example, by writing an essay or answering trivia questions—but even that approach requires legal vetting. Homeowners looking for alternative sales techniques are often better off exploring creative but legal strategies like lease-to-own or seller financing instead of rolling the dice with a raffle. Read more about Arizona home prices.
Why Raffle Off a House? The Hidden Legal Risks and Better Strategies for Selling Real Estate
