The landscape of how homes are bought and sold on Long Island is on the verge of a massive regulatory shift. For years, "pocket listings" or "private exclusives"—properties marketed quietly within a specific brokerage or select inner circle rather than on the public market—have been a popular tool. Recently some high profile brokerages have been expanding the practice significantly. Their claim is it done in the name of consumer choice and innovation.
However, New York State lawmakers view them through a completely different lens.
With the rapid progression of the Fair and Transparent Real Estate Listings Act (Assembly Bill A10679), New York is moving swiftly to make public marketing the absolute default. Here is a deep look into the history of private listings, local MLS rules, and what this pending legislation means for homeowners and buyers across Nassau, Suffolk, and Queens counties.
The History of Private Listings and Local MLS Rules
Historically, pocket listings were informal—a "whisper listing" passed via text message, word-of-mouth, or exclusive agent groups. As big-box brokerages grew, they formalized these networks into proprietary "Private Exclusive" or "Private Listing Networks (PLNs)." The financial incentive for brokerages was clear: by keeping a listing internal, the firm could easily match it with an in-house buyer, effectively retaining both sides of the commission.
To combat this fragmentation of inventory, the National Association of Realtors (NAR) implemented the Clear Cooperation Policy in late 2019. Locally, OneKey MLS (serving Long Island and Queens) enforces strict rules aligned with this policy. Under current MLS regulations:
- Within one business day of any public marketing (including yard signs, social media posts, or blast emails), a listing must be submitted to the MLS for public cooperation.
"Office Exclusives" remain legal under current MLS rules, but only if the property is strictly marketed one-on-one within the listing brokerage, with no public-facing marketing whatsoever.
Despite these MLS guardrails, state lawmakers argue that inventory fragmentation remains an issue, prompting direct legislative intervention.
Why States and New York Are Targeting Private Listings
State governments are stepping in primarily due to two mounting concerns: fair housing and market equity.
Access to real estate data directly shapes consumer outcomes. When properties are hidden in private networks, it inherently restricts who gets to see them.
Fair housing advocates have long warned that private listing networks can perpetuate systemic discrimination. By limiting property exposure to a select, curated pool of buyers or specific agent networks, certain demographics are locked out of the loop. This directly contradicts New York State’s strict fair housing framework.
Furthermore, data consistently proves that off-market properties suffer a financial penalty. A landmark study by Redfin revealed that pocket listings sell for an average of 17.5% less than comparable homes exposed to the open, competitive Multiple Listing Service.
The Pending Legislation: Assembly Bill A10679
Introduced by NY State Assemblywoman Michaelle Solages (representing parts of Nassau County), the Fair and Transparent Real Estate Listings Act takes direct aim at these private networks.
Key Provisions of the Bill:
Mandatory Public Marketing: The bill requires that any residential property listed for sale or lease must be publicly advertised or marketed on platforms accessible to the general public within one calendar day of signing a listing agreement.
Informed Written Opt-Out: True private listings are not entirely banned, but the barrier to use them is significantly raised. A seller can only opt out of public marketing by signing a standardized, state-mandated disclosure form.
Rigid Risk Disclosures: The state's standardized form explicitly warns sellers of the concrete risks of off-market sales, including limited digital exposure, fewer offers, and a potentially lower final sales price. Listing agents are explicitly prohibited from altering or omitting any of this mandatory state language.
Road to Passage and Likelihood of Becoming Law
The momentum behind this bill is exceptionally strong. The New York State Assembly officially passed Bill A10679, followed swiftly by passage in the New York State Senate.
Because the legislation has successfully cleared both chambers of the state legislature, it now heads to the Governor's desk for final signature. Given New York’s aggressive stance on consumer protection and fair housing transparency over the past several years, the likelihood of this bill being signed into law is incredibly high.
When enacted, the law will create a brand-new section of the Real Property Law (RPL 443-b). The legislation replaces internal industry rules with actual state law. Violations can lead to license suspension or revocation and steep fines of up to $5,000 per listing. Long Island real estate brokerages will face immediate compliance risks. Navigating these shifting regulations requires a brokerage that prioritizes transparency, legal compliance, and maximum market exposure to net you top dollar.
The legislation already includes the exact language for the disclosure form right inside the text of the bill.
Instead of passing the buck to the Department of State (DOS) to draft a form from scratch later, the New York Legislature wrote the mandatory disclosure and opt-out text directly into the statutory language of the Fair and Transparent Real Estate Listings Act.
The DOS will technically issue the final, standardized physical layout, but the text is set in stone. Because the law states that a listing agent "shall not alter or omit any required disclosure language," brokerages like Compass cannot tweak a single word of it. The exact language of the new disclosure is built directly into the bill and forces sellers to initial next to several blunt, heavily emphasized disclosures:
The Statutory Form's Core Language
The bill mandates that the form must feature a clear lead-in framing why public marketing matters, followed by four mandatory "hazard" warnings that the seller must explicitly initial:
1. REDUCED VISIBILITY TO BUYERS
"I understand that real estate licensees representing prospective buyers may not be aware that my property is available for sale, and that potential buyers who are not connected to my listing agent or their brokerage may never see my listing."
Seller to initial: ________
2. LIMITED ONLINE EXPOSURE
"I understand that my property may not be displayed on internet platforms or websites the general public uses to search for property listings."
Seller to initial: ________
3. FEWER OFFERS AND POSSIBLE IMPACT ON PRICE AND TIMING
"I understand that reducing the exposure of my property may reduce the number of offers I receive from buyers and could negatively impact my ability to sell the property sooner and at a higher price."
Seller to initial: ________
4. RESTRICTED MARKETING CHANNELS
"I understand that the property shall not be advertised, displayed, or distributed on any publicly accessible internet platforms, websites, or digital services used by members of the general public to search for real estate listings, including but not limited to real estate listing websites, multiple listing [services]."
Seller to initial: ________
You can find the Senate bill here.
By:
Christopher Robson
Licensed Real Estate Broker
Molloy University Real Estate Faculty
(516) 459-9564
chris@educatorsrealty.com
