Real estate agent raffling off his Spanish apartment to settle debts
"An unemployed Spanish real estate agent is selling raffle tickets in a bid to get rid of his $500,000 apartment in Ciempozuelos, near Madrid, because he is behind on his mortgage payments and cannot sell it."
This sound like a good idea. In today's market, if the publicity can be generated and the sale can be conducted online and off-line. There are costs involved, legal issues, printing, advertising, etc and there must be enough tickets being sold by the raffle draw date.
Is this legal in the US? Anyone know of anyone doing this successfully selling a home by selling raffle tickets in a down market.
Don't know, but back in the 80's, I remember reading a couple stories of people here in the States that held a contest, a writing contest, for their homes. You had to write an essay about why you wanted the house & enclose $50 to enter. The Seller made lots of cash and someone got a house for fifty bucks!
I know that in Georgia you have to have a raffle license and you have to file documents with the state letting them know what you are raffling, the value, how much the tickets are, etc. I am not aware of a limit, but I think they would frown on raffling a house by an owner just because it is so easily riggable. Good thought, though.
Heard this done here once by a builder but I think the "disclosure" has to be really realy long and legal ... ie if not xx,xxx tickets are not sold the property will not be raffled. Also things like closing cost transfer fees ... and 101 other legal things our US system drag down.
Sounds like a good idea, but like all good ideas, one must be able to effectively advertise it, or else you wouldn't make enough money on the raffle to be able to let the house go.
That is a good question about the legality of this. This could wind up being a very good solution for a lot of people about to lose their homes if they can't sell it. Please...let me know what the answer is when someone finds out.