Home sales by competition risk breaking the law, says Law Society

Article Type: Newsbriefs From: Structural Survey, Volume 27, Issue 2

Keywords: Competition, Homes, Illegal, Selling

Home sellers are being warned by the Law Society to tread carefully in relation to homes being sold via competitions or risk breaking the law. As homeowners find it harder to sell in the current economic downturn, they are looking to pursue alternative methods. An increasing number are attempting to organise competitions whereby entrants pay for the chance to win the property. However, strict laws on running lotteries could mean sellers are breaking the law without even realising it. Lotteries must be licensed by the Gambling Commission and they must not be for profit or commercial gain. Calls to the Law Society’s Practice Advice Service from solicitors querying house competition sales have increased recently, prompting the Society to issue a Practice Note to its members advising on how to deal with competition house sales, particularly, how to identify fraud, money laundering as well as any breaches of gambling laws.