Connecticut Gov. Ned Lamont signed legislation on May 27 requiring residential listings to be publicly marketed concurrent with any private or selective promotion, adding the state to a growing list of jurisdictions moving to restrict pocket listings.
Senate Bill 340 applies to residential properties of up to four units, covering the bulk of Connecticut’s residential transactions and extending the requirement to landlords marketing rentals alongside sellers listing homes for sale.
Agents and brokers must make listings available to the general public at the same time a property is first marketed, whether through social media, lawn signs, email blasts to multiple recipients or a private network shared by two or more brokerages. Platforms that require a password or an invitation do not meet the standard.
Sellers who prefer to limit their listing’s exposure can sign an opt-out form acknowledging the tradeoffs, including the potential for fewer offers and a lower sale price. The law takes effect Oct. 1 and carries penalties of up to a $5,000 fine or license suspension for agents and brokers who fail to comply.
The legislation comes amid an ongoing industry dispute. Zillow, which lobbied for similar legislation in Washington and Wisconsin according to state records, has framed the bills as a matter of consumer transparency. Compass, whose 3-Phased Marketing Strategy includes a period before broad MLS distribution, has characterized the push as an effort to limit competition and seller choice.
In a statement, a Compass spokesperson told Inman that “Connecticut puts into law that private exclusives are a required legal option for sellers.” The company also pointed Inman to CEO Robert Reffkin’s comments on social media.
“Connecticut state law now requires that sellers have the option — with disclosure — to privately market their homes,” Reffkin said. “We’ve been advocating for a simple principle: homeowners should have a choice in how they market their homes. Sellers, together with their agents, should be able to decide how they market their home. The seller hired the agent and brokerage firm to provide guidance and advice. They did not hire a third-party portal or platform to make that decision for them.”
New York’s state Senate passed a comparable bill June 1 that now heads to Gov. Kathy Hochul’s desk. Washington state’s similar law takes effect June 11. Wisconsin enacted a public-marketing requirement in December, and Hawaii and Illinois are considering similar measures.
Update: This story was updated after publication with comments from Compass.
