The state Legislature passed a bill on June 1 that requires agents to publicly market properties unless sellers or landlords opt out by signing a disclosure warning that private listings can reduce exposure and competition.
The legislation’s passage comes as policies on private listings from the National Association of Realtors and Zillow, and the use of exclusives by Compass, have evolved in recent years, pushing the debate on listing marketing and transparency practices into state legislatures.
New York lawmakers passed the Fair and Transparent Real Estate Listings Act just five days after Connecticut’s governor signed a similar bill into law, while Illinois and Hawaii are weighing their own measures. Washington adopted the nation’s toughest restrictions in March, limiting off-market listings only to sellers with health or safety concerns. Wisconsin became the first state to regulate private listings in December, taking an opt-out approach similar to New York.
If Gov. Kathy Hochul signs the bill into law — her office says she intends to review it — policymakers and consumer advocates say New York’s move to rein in listings in one of the country’s largest housing markets could become a template for other states considering similar regulation. Assembly member Michaelle Solages, one of the bill’s lead sponsors, said her goal is to “bolster the housing market, not hinder it.”
“This is America, if folks want to privately list, they should be free to do so, we just want them to understand the consequences,” said Solages, who represents western Long Island.
Bronx state Sen. Nathalia Fernandez, who sponsored the Senate version of the bill, added that “greater transparency and equal access” is at the heart of the legislation.
Under the bill, agents representing sellers or landlords must market a property in a “timely” manner on at least one widely accessible platform — such as a multiple listing service (MLS) or a public website that doesn’t require payment or broker affiliation.
An earlier version would have required listings to go live within one calendar day of signing a listing agreement. But after brokers raised concerns about staging logistics, Solages said she softened the language.
Any property listed on “private or limited access channels” must also be marketed publicly at the same time. A property can only be kept off the public market if the seller or landlord signs a standardized “Disclosure Form for Seller or Landlord Opt-Out of Public Marketing.” The form plainly spells out that skipping public marketing may mean less exposure, fewer offers and the risk of a slower sale or lease — and a potentially lower price.
The message is counter to Compass’ argument that private marketing can increase a home’s value by avoiding drags like days on market and price changes. Devin Daly Huerta, a spokesperson for the brokerage, said Compass has its own opt-out forms that “already align with the new law.” He added that the company’s three-phase marketing approach is
“fully compliant with this and all other laws.”
The legislation aligns with arguments from home-search giant Zillow that broader exposure leads to higher sale prices — a view shared by several economists and consumer advocates.
Zillow was among the stakeholders consulted on the bill, said Solages. Compass said it did not get involved in the legislative process.
August Green, a Zillow spokesperson, said the company supports New York lawmakers’ efforts to “ensure that everyone can see and compete for houses that would work for their family and budget.”
The New York bill is agnostic on precisely how listings are marketed so long as they are posted to at least one “broadly accessible” publication, website or platform available to both the public and agents. The framing wouldn’t impact the recent wave of brokerage-platform deals to display listings outside the MLS.
Compass and Redfin announced the first of those partnerships in February, followed by a slew of deals by Zillow and more than 60 brokerages and franchisors, including Keller Williams, HomeServices of America and REMAX.
In a statement, the New York State Association of Realtors said it believes the legislation “strikes the appropriate balance between educating sellers and lessors regarding the use of private listing networks while preserving consumer choice” on how properties are advertised.
Violations of the rules could come with real consequences: the Department of State would have the power to suspend or revoke a license, or impose a fine of $5,000. The bill, however, does shield real estate professionals from legal liability if they acted in “good faith” and did not knowingly make false or misleading statements.
Brown Harris Stevens CEO Bess Freedman said she believes the bill is “a step in the right direction” and that the steep penalties could deter agents from pushing private listing networks.
“Consumers are going with what their professionals are telling them, and they’re not necessarily keen to all the intricacies of the market,” said Freedman. “Broad exposure gets you the highest price, and it’s the right thing to do for the consumer.”
Stephen Brobeck, a senior fellow at the Consumer Policy Center who studies real estate services, flatly called the New York bill, along with similar efforts in other states, “a reaction against the efforts of large private listers to manipulate the marketplace.”
“The only freedom that it restricts,” added Brobeck, “is the ability of irresponsible private listers to sell a bill of goods to their less well-informed clients.”
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