New York’s State Senate approved the Fair and Transparent Real Estate Listing Act 60-0, sending the measure to Gov. Kathy Hochul. The bill would require most residential listings to be advertised on free or publicly accessible platforms unless a seller signs a disclosure acknowledging potential reduced visibility and fewer offers. It raises penalties for broker misconduct and follows similar laws in Washington and Connecticut. Studies from Bright MLS and Zillow suggest private listings can take longer to sell and may fetch slightly lower prices.
New York Senate Approves Bill to Restrict Private Home Listings, Sends Measure to Governor
New York state Sen. Nathalia Fernandez championed the bill, which would ban private home listings marketed to an exclusive audience.
New York is poised to limit the use of private home listings that are shown only to select buyers, after the State Senate approved the Fair and Transparent Real Estate Listing Act by a 60-0 vote. The bill now goes to Gov. Kathy Hochul for signature.
What the Bill Would Do
The measure would require listing agents to advertise residential properties on free or publicly accessible platforms (such as public websites or publications) rather than through private or exclusive networks. Sellers could still choose a private listing, but only after signing a written disclosure acknowledging that a private listing may reduce visibility, result in fewer offers, or yield a lower final sale price. Public marketing must begin as soon as the property is placed on the market.
Penalties and Enforcement
The bill increases penalties for violations of broker conduct: the maximum fine would rise from $2,000 to $5,000 and could include license suspension or revocation in serious or repeated cases.
Why Lawmakers Support It
"For most families, buying or selling a home is one of the most significant financial decisions that they will ever make," said State Sen. Nathalia Fernandez (D-The Bronx), sponsor of the bill. "Those decisions should be made in a marketplace where information is broadly available — not hidden behind private networks that limit who can see the listings, and when they can see them."
Context and Evidence
If signed, New York would be the third state this year to adopt such a restriction, following Washington and Connecticut. Similar proposals have been introduced in Illinois and Hawaii.
Private listings have generated controversy: several large brokerages and data providers have experimented with private or "preview" listings, prompting concerns from fair-housing advocates that closed networks can exacerbate bias and limit equal access.
Research is mixed but raises caution. A Bright MLS study found private listings tend to take longer to sell and do not guarantee higher proceeds. A Zillow analysis reported that private or preview listings sold for about 1.3% less than comparable sales on the multiple-listing service (MLS), an average difference of roughly $4,230 per transaction. Realtor.com recently reached an agreement with Zillow to display preview listings from participating brokers to increase transparency.
Stakeholder Reaction
The New York State Association of Realtors® expressed strong support for the bill, saying it balances educating sellers about private listing networks while preserving consumer choice in how properties are advertised and sold.
With the legislation now on the governor’s desk, its final fate will depend on Gov. Hochul’s decision and any implementation details set by state regulators if it becomes law.
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