A plain language breakdown of the Fair and Transparent Real Estate Listings Act and what it means for buyers and sellers on Long Island
Q: What is a private listing network?
A private listing network is when a brokerage keeps a home for sale within its own internal system before, or instead of, putting it on a public platform like the MLS.
The home exists. It is for sale. But only buyers working with agents at that specific brokerage can see it. Buyers working with agents at any other brokerage cannot.
This is different from a true off-market sale, where a seller genuinely wants privacy and chooses not to market publicly at all. A private listing network is still marketing. It is just marketing that is restricted to one company’s ecosystem.
Q: What is the Fair and Transparent Real Estate Listings Act?
It is a bill introduced in New York State in late March 2026. The bill would require that real estate listings be made publicly accessible, either through an MLS or a public website, so that all buyers and all agents can see them.
The bill includes an opt-out provision. If a seller reads and signs a standardized disclosure form acknowledging the tradeoffs, they can still choose private marketing. But the default changes. The starting position becomes public access, not restricted access.
Q: Why is this bill being introduced now?
New York is not the first state to look at this. Washington, Illinois, Wisconsin, and Connecticut have all passed or considered similar legislation.
The timing in New York connects to the growing use of private listing networks by large brokerages, most visibly Compass, which has built a significant portion of its business model around keeping listings within its own network before releasing them publicly.
As this practice has grown, so has the scrutiny.
Q: What problem is the bill trying to solve?
The bill’s introductory language points to three specific concerns.
First, buyers lose access to homes they never knew existed. If a listing never hits the MLS, buyers working with agents outside that brokerage simply do not see it.
Second, sellers may get less money. Fewer buyers competing for a home generally means less upward pressure on price. A seller who thinks they are getting exclusive treatment may actually be getting a smaller buyer pool.
Third, there are fair housing implications. When inventory flows through restricted networks, the people most likely to be excluded are those without access to the dominant brokerage in a given market. That can reinforce existing patterns of segregation in ways that are difficult to see but very real in their effect.
Q: What are industry leaders in New York saying about it?
Reactions vary depending on who you ask.
Bess Freedman, CEO of Brown Harris Stevens, publicly supports the bill. Her argument is direct: private listing networks limit competition, constrain price, and may expose brokerages to fair housing liability. She draws a clear distinction between a seller who genuinely wants privacy and a brokerage that keeps inventory inside its own walls for competitive advantage.
Freedman argued that private listings done for discretion and private listing networks that keep inventory within one brokerage away from other brokerages and buyers are not the same thing, and that the narratives around the two have become dangerously conflated.
The New York State Association of Realtors (NYSAR) has not taken a firm position for or against the bill as currently written. NYSAR Vice President and Chief Lobbyist Mike Kelly stated that the association is generally supportive of ensuring visibility of listings to the public while preserving consumer choice in how their property is marketed, and that conversations with industry partners about potential amendments are ongoing.
The Real Estate Board of New York (REBNY) did not explicitly support or oppose the legislation, noting only that it is consistent with the standards already established for their own residential listing service.
Q: Does this affect Long Island buyers and sellers directly?
Yes, and more than most people realize.
Long Island operates primarily through OneKeyMLS, which covers most of Nassau and Suffolk County. The MLS system here is well established and widely used. But as large brokerages with private listing capabilities expand their presence on Long Island, the same dynamics playing out in Manhattan and Brooklyn will follow.
If a home in Smithtown or Nesconset is being quietly marketed within a single brokerage’s network before hitting OneKeyMLS, buyers working with agents at other brokerages are already at a disadvantage. They may never see the home during the period when it has the most momentum and the seller has the most flexibility.
Q: As a seller, should I care about this?
Very much so.
The most important thing a seller can do is maximize the number of qualified buyers who see the home. More buyers means more competition. More competition means stronger offers. Stronger offers mean better outcomes on price and terms.
A private listing network may sound like an exclusive or premium service. In practice, for most sellers, it reduces the audience competing for their home. That reduction has a cost, and that cost typically comes out of the final sale price.
If an agent or brokerage recommends keeping your listing off the MLS for a period of time, ask directly: how many buyers will see this home that would not see it on the open market, and how many buyers will be excluded? Make them show you the math.
Q: As a buyer, what does this mean for me?
It means that right now, before this legislation passes, some homes for sale in New York may not be visible to you depending on which brokerage your agent works for.
This is one of the less discussed reasons why working with an agent who has broad MLS access and is not operating inside a closed network matters. Your agent should be showing you everything available, not everything available within one company’s walls.
Q: What happens next with the bill?
The bill was introduced in late March 2026 and is currently moving through the legislative process. NYSAR has indicated it is in conversations with industry partners about potential amendments before taking a formal position.
Given that New York is the fourth most populous state in the country, how this legislation develops will likely influence similar efforts in other states.
Q: What is the bottom line for Long Island homeowners?
Whether this bill passes or not, the underlying principle matters.
Your home should be seen by every qualified buyer in the market. That exposure is what drives competition. That competition is what drives price. Any system that limits that exposure, for any reason other than your own informed, voluntary choice, is working against your interest as a seller.
The best agents regardless of brokerage have always operated this way. Maximum exposure. Maximum competition. Maximum outcome for the client.
If you are thinking about selling in Suffolk County and want to understand exactly how your home would be marketed and who would see it, that is a conversation worth having before you sign anything.
I am Muds. Muds the Realtor. I work with OverSouth Real Estate, the fastest growing brokerage on Long Island. Don’t hesitate to call me for your real estate need!
