Md. Code Regs. 01.02.07.05

Current through Register Vol. 51, No. 22, November 1, 2024

Section 01.02.07.05 - Receipts and Notices

A. A charitable organization conducting a raffle of real property may not sell any chance unless, at the time of sale, the purchaser is given a written receipt for each chance bought, in the form of a ticket that contains:

(1) The name and Maryland address of the organization that is conducting the raffle;

(2) The address of the real property to be raffled and a brief description of that property;

(3) The date and time the organization will select the winner of the raffle, and the location of the drawing;

(4) The amount of consideration paid for the chance;

(5) A notice to the purchaser that a complete disclosure statement regarding the raffle is available, on request and at no cost, from the charitable organization;

(6) A notice that the winner is responsible for any liens, encumbrances, closing costs, and applicable taxes unless otherwise provided in the disclosure statement; and

(7) If needed, a notice that, if the raffle is cancelled, a percentage of the price of a chance may be retained by the charitable organization for administrative costs.

B. A written notice advertising the raffle shall include the information required in §A of this regulation.

C. The charitable organization shall obtain the name and address of each purchaser of a raffle chance.

D. Disclosure Statement.

(1) The charitable organization shall provide each purchaser of a chance, on request and at no cost to the purchaser, a copy of the disclosure statement filed with the Secretary of State.

(2) Before the transfer of title to the raffle winner, the charitable organization shall provide the winner with a copy of the disclosure statement and obtain a signed acknowledgment of its receipt from the winner.

(3) A copy of the signed acknowledgment shall be filed with the Secretary of State and retained by the charitable organization for a minimum of 3 years after the winner acknowledges receipt of the disclosure statement.

(4) The disclosure statement provided to any purchaser of a chance and to the raffle winner shall include a statement that the disclosure statement has been placed on file with the Secretary of State of Maryland.

Md. Code Regs. 01.02.07.05