There is a growing trend to try and sell houses by way of a competition rather than by using a traditional estate agent and also may be a way of avoiding the payment of stamp duty.

Some of these schemes are very innovative, but can very easily fall foul of the law because they are a form of gambling. Most of these schemes that we have seen so far have flaws which could render the organisers liable to prosecution and the possibility that all entrant's fees have to be repaid in full.

In order to escape the need for a licence and to operate legally, competitions can involve an element of chance but must also require sufficient skill, judgment or knowledge to deter a significant proportion of potential entrants from participating or eliminate a significant proportion of actual entrants from receiving a prize.

We advise anyone contemplating a house sale competition to seek expert legal assistance first. Our licensing team have expertise in his area and can advise on how to undertake the competition within the law.