Would you ever consider raffling your home?
Raffling your home might provide you with a solution in extreme financial circumstances but you could be entering into an abyss from which there is no return.
Owning your home is a decision you make usually under the best of circumstances, but it does not always work out so well. The value of property can also go down, it is only worth what a person will pay in the current market, nothing more.
The British people have an obsession with spending money on property and then finding themselves trapped. Many people need to relocate for family reasons, others lose their jobs and their lifeline. Whatever the reason, it can be a costly business finding someone to follow your dream.
An increasing number a home owners are turning to conduct house raffles in the hope that it might be the answer to their prayers. Think again, of the risks involved.
The Raffle Process
Firstly you will need to find a lawyer to set up your house raffle because otherwise you could easily break the law. Most people so far seem to have opted to conduct house raffles for legal reasons as a last resort. Most owners set up a website to automate the sale of raffle tickets.
Imagine that, you can now sell raffle tickets for your home but with that comes masses of responsibility. For a start you will a dedicated bank account, usually in the house owners name to take payments. This is a big element of trust. It puts the owner completely in control of a raffle.
It also means the biggest risk is being absorbed by the owner of the house. There can be no certainty that the prescribed number of raffle tickets will be sold. There has already be a failed house raffle.
Bear in mind also, the whole point of conducting a raffle is to have a winner. The law requires that, otherwise people can go to prison.
The UK Gambling Commission has task of administering gambling law in connection with raffles, but questions are already being asked. Is it acceptable to conduct a high value property raffle, without have a licence in place.
The Real Risk
Failing to sell the prescribed number of tickets is the most significant risk.
The question is, at what stage would you an owner abort a house raffle. Is it a acceptable to delay if progress has been slow? Who makes those decisions?
What then happens to unpick the mess of failed house raffle? Will the owners be responsible for repaying all money to the contestants and how do the charities get there share of their rightful proceeds. Is their a trustee or a guarantor involved. Is adequate consumer protection in place?
When looking at this from the home sellers point there is a massive responsibility to conduct the raffle properly. Will all the owners take it equally seriously?
It will be interesting to see how the scenario unfolds in due course. Raffling your home may not be the best way forward for your piece of mind.
The easiest solutions are not always the best ones.
Update: The Dullatur House raffle in Scotland has been withdrawn because it was blocked because by Paypal,