Across the county, desperate homeowners are looking for unusual ways to unload their house. You may have seen Internet ads that say you can raffle your house and pocket the cash. Unfortunately, it’s against the law for private citizens to hold raffles. Only nonprofits can hold raffles, and there are a bunch of rules and regulations they have to adhere to in order to make a house raffle legal. What do you get out of it? If you transfer title to a nonprofit, you’ll get a big fat tax deduction – but that isn’t what more people who want do conduct a house raffle are looking for. This page has more information on house raffles.
In some states, selling homes through a lottery or raffle is legal, but may be strictly regulated. If you plan to have people participate in your home or house lottery that are from states other than your own, you may have to comply with the lottery or raffle rules in each of those states.