Homeowners could be gambling their house in home raffles, authorities warn – Telegraph.co.uk

Paypal, the online payments company, recently stopped people from buying house raffle tickets because the schemes present unusual challenges.

We have seen an increase in the number of people setting up house prize draws in recent years, as homeowners seek new ways of disposing of their property in a challenging housing market.

They are difficult to carry out successfully and carry considerable risks, such as the possibility that the property is not accurately described; or that the draw is not conducted fairly; or that entries are made from countries where such prize draws are unlawful.

Sarah Gardner, the commissions executive director, said: Sometimes what might seem like a competition could be a lottery in law, and that may mean you are operating an illegal lottery. Our advice to people thinking of doing this is to ensure they are compliant with the law and seek legal advice if in any doubt.

For Lucian Cook, head of residential research at the property consultancy Savills, the prospect of these raffles becoming commonplace remains unlikely.

We would consider these so-called raffles to be the last option. I think people will continue to rely on the normal routes to market, a well-established process that works.

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Homeowners could be gambling their house in home raffles, authorities warn - Telegraph.co.uk