FACTS:                     

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.

ISSUE:                      

May the agent hire the third party to create such a promotional program?

ANSWER:                

No. 

DISCUSSION:

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.