Connecticut joins a wave of states restricting private listings

Connecticut Governor Ned Lamont signed legislation on May 27 requiring home listings to be publicly marketed concurrently with any private or selective promotion, adding the state to a growing list of jurisdictions taking steps to restrict pocket listings.

Senate Bill 340 applies to homes of up to four units, covering the majority of residential transactions in Connecticut and expanding the requirement to landlords offering rental properties in addition to sellers offering homes for sale.

Agents and brokers must make listings available to the general public at the time a home is first marketed, whether through social media, lawn signs, email messages to multiple recipients, or a private network shared by two or more agents. Platforms that require a password or an invitation do not meet the standard.

Sellers who prefer to limit the visibility of their listing can sign an opt-out form acknowledging the tradeoffs, including the possibility of fewer listings and a lower sales price. The law goes into effect on October 1 and provides for fines of up to $5,000 or license suspension for agents and brokers who fail to comply.

The New York Senate passed a similar bill on June 1 that now goes to Governor Kathy Hochul’s desk. Washington State A similar law will come into effect on June 11. Wisconsin introduced a public marketing requirement in DecemberAnd Hawaii And Illinois Are is considering similar measures.

The legislation comes amid an ongoing dispute within the industry. Zillow, which lobbied for similar legislation in Washington and Wisconsin, according to state records, framed the bills as a matter of consumer transparency. Compass, whose three-phase marketing strategy includes a period before the widespread distribution of MLS, has characterized the push as an attempt to limit competition and seller choice.

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