Legal Question in Real Estate Law in California

Re: Real Estate Raffle

Is prostitution legal? No, but it goes on every day in the Golden State. What your question asks is, is it legal to gamble, and the answer is no. A raffle is a form of gambling, which is normally regulated by the California Gambling Commission.

I am assuming that the raffle is unauthorized. In a suit between someone over the sale, the agreement is most likely oral, and would also trigger statute of frauds problems. Contracts that involve an illegal subject matter are also unenforceable.

This begs the question, who is going to raise these issues? Certainly not the fellow with the winning ticket, unless he doesn't get his $400.00 deed. If one of the losers goes to court, most likely small claims, he is going to have trouble prevailing. (Think of someone suing a prostitute for specific performance or for his money back - the judge is going to throw him out of the courthouse.)

Does this mean the guy should do it? No, but it is a violation of the Penal Code, and therefore a crime, and I can never encourage someone to commit a crime. But as far as the civil law is concerned, there is not much I can do.

Very truly yours,

Re: Real Estate Raffle

Penal Code section 319 covers lotteries, and Penal Code section 320.5 covers raffles, which are considered a sub-species of lottery. They are illegal, with very limited exceptions.

PC 320.5 gives an OK for a raffle conducted by a private nonprofit organization that has qualified in California for at least one year prior to the proposed raffle and is exempt from taxation in California. The proposed raffle must also meet other criteria.

So, unless you are a qualified nonprofit, your proposed lottery is illegal; you would be committing a misdemeanor, and, perhaps worst of all for you, all the money collected AND the home would be forfeited to the State of California under Penal Code section 325.