An agent wants to hire an unlicensed third party to create a promotional program where the third party would email contacts in a database with a questionnaire asking how likely the recipient would be to sell their home in the next six months. In exchange for responding to the questionnaire, the recipient would be entered into a drawing to win a Visa gift card.
May the agent hire the third party to create such a promotional program?
First, prospecting for clients via the outlined promotional activity constitutes the practice of real estate. See A.R.S. §32-2101(49)(i). The unlicensed third-party vendor can therefore not facilitate the promotional program.
Second, a raffle is a game of chance where the player gives consideration in exchange for a prize with monetary value and the winner is drawn by luck. In Arizona, a raffle may only be held by qualifying organizations which are generally limited to charitable organizations. See A.R.S §13-3302. Because the recipient here is required to complete the survey (thereby providing consideration) the promotional program is a raffle. Because neither the agent nor the brokerage is a qualifying organization, the raffle would not be allowed by state law.