New York lawmakers are moving to rein in private listing networks, introducing legislation that would require most residential properties to be publicly marketed — a shift that could reshape how homes are brought to market and how originators engage with inventory.
The proposed “Fair and Transparent Real Estate Listings Act,” introduced in mid-March by NY State Assemblywoman Michaelle Solages, would mandate that listing agents advertise properties on platforms broadly accessible to the public within one calendar day of signing a listing agreement.
The bill is the latest in a growing wave of state-level efforts to regulate so-called “private listing networks,” which limit property visibility to select groups of agents or buyers rather than exposing listings to the open market.
What The Bill Would Do
Under the proposed legislation, agents would no longer be able to rely solely on private listing networks to market homes. Instead, listings must be publicly available unless a seller explicitly opts out under strict conditions.
The bill defines private listing networks as platforms that restrict access to listing information to a subset of agents or buyers, rather than making it broadly accessible.
Sellers could still choose to keep listings off the public market, but only after signing a standardized disclosure acknowledging the risks, including reduced exposure and potentially fewer offers.
Exceptions would also apply in cases involving privacy or safety concerns, though even then, sellers retain the right to reverse course and move to public marketing at any time.
Part Of A Broader National Shift
New York is not acting alone. Similar measures have already passed in Washington and Wisconsin, with additional legislation under consideration in states including Illinois, Connecticut, and Hawaii.
The push reflects growing concern among policymakers that private listing networks reduce transparency and limit competition, potentially impacting pricing and access for buyers.
At the same time, the issue has become increasingly contentious across the industry, as brokerages and platforms experiment with alternative listing strategies outside traditional MLS channels.
What It Means For LOs
For mortgage professionals, the implications are less about compliance and more about pipeline visibility.
If enacted, the bill could increase the volume of publicly available listings, giving originators clearer insight into local inventory and more opportunities to engage with buyers earlier in the transaction cycle.
At the same time, it could reduce the prevalence of off-market deals, which often limit financing touchpoints and favor cash or pre-arranged buyers.
The broader takeaway: more transparency in listing practices could translate into more predictable deal flow, but also more competition, as properties are exposed to a wider pool of buyers.
New York’s proposed legislation is part of a broader regulatory push to bring more transparency to residential real estate transactions. If it passes, it would formalize public marketing as the default — and potentially shift how deals are sourced, competed for, and financed.
