New York joins states seeking to regulating private listing networks

New York has joined the growing list of states exploring legislation designed to govern the use of private listing networks for residential real estate listings. 

In mid-March, Assemblywoman Michaelle Solages introduced the “Fair and Transparent Real Estate Listings Act,” which has since been referred to the committee on judiciary. 

If passed, the bill would require real estate professionals to publicly advertise or market a residential property they list on platforms accessible to the general public. 

The bill defines a private listing network as a system or platform operated on behalf of a brokerage, franchise, MLS or group of licensees that restricts access to some or all listing information to a definite subset of brokers, licensees or buyers and that is not “broadly accessible” to the general public and all licensees representing the prospective buyers. 

According to the bill, within one calendar day of the start date of a written listing agreement, a listing agent must publicly advertise or market the listing for sale in or on a publication, platform or website “that is broadly accessible to the general public and any real estate licensees representing prospective buyers and shall not satisfy this requirement by advertising or marketing solely through a private listing network or other restricted-access platform.” 

Seller can give informed, written direction

Under the bill, listings could be non-publicly marketed if the seller “gives informed, written direction after receiving a standardized state disclosure that clearly explains the risks and tradeoffs of withholding a listing from public marketing.” Additionally, the bill allows the listing agent to restrict public marketing if the seller has a “bona fide private, safety or similar need” where any public marketing would be “reasonably likely” endanger their health or safety. Even with this carve out, the seller must still give written consent to the agent to not publicly market the property.

If a seller wishes to not publicly market their home, the listing may only be shared with “individual, identified prospective buyers or their agents on a case-by-case basis consistent with applicable fair housing and anti-discrimination laws.” 

While the bill would require a seller to sign a disclosure enabling their listing agent to not publicly market their property, the proposed disclosure provides sellers with a right to change their mind, stating that at “any time” they may provide written notice to their agent directing the agent to publicly advertise the property. 

A spokesperson for the New York State Association of Realtors (NYSAR) told HousingWire that it does not have a position on the bill as it is currently drafted. 

“Generally, we are supportive of the principal goals of the legislation to ensure visibility of real estate listings to the public while at the same time preserving consumer choice regarding the marketing of their property,” the spokesperson wrote in an email. “We are in conversations with industry partners regarding the legislation and potential amendments, and we will be conveying NYSAR’s perspective to state lawmakers and the Governor’s office.”

Last month, Washington Governor Bob Furgeson signed a bill into law banning the exclusive marketing of listings to select groups of buyers. This came roughly four months after Wisconsin Governor Anthony Evers signed a bill into law making the public marketing of a property the accepted default. The law is slated to go into effect on January 1, 2027. In addition to these two laws, there are bills pending in Illinois, Connecticut and Hawaii seeking to regulate private listing networks.