Washington, D.C. —  Economic Liberties today released new model legislation that would ensure that real estate listings are openly viewable to the public for both home purchases and rentals and that homebuyers do not have to commit to a particular brokerage or agent just to view listings.

“Private listings are an unfair and confusing disruption for everyone except monopolistic real estate brokerages like Compass, which profits from gatekeeping and hogging listings,” said Laurel Kilgour, Research Manager at American Economic Liberties Project. “They turn what should be an open marketplace into a closed-door system where renters and buyers are deprived of basic information about what properties are available in their area or how long listings have really been on the market. Meanwhile, sellers lose out on potential higher bidders who aren’t working with the same broker. Our model legislation would require listings to be openly viewable and would also ensure buyers aren’t forced to sign up with a particular agent or brokerage just to see what’s for sale.”

Digital real estate platforms promised an open marketplace where renters, buyers, and sellers could get a competitive, fair deal. The recent rise of exclusive private listings has put that promise in jeopardy. Rather than sharing homes for sale or rent on public-facing sites, brokerages withhold them from the broader market and show them only to a select subset of clients. Buyers get less choice and lose key information like price history and days on market. Sellers get fewer buyers, and with that, less competition and potentially lower offers.

Once a rarity, private listings have skyrocketed in recent months, accelerated by Compass’s acquisition of Anywhere Real Estate, which made Compass America’s largest brokerage. Compass has made private listings a cornerstone of its business model, and in New York, it now faces a state antitrust investigation and a class-action lawsuit for allegedly using its private listing practices to jack up NYC rents.

This model legislation builds off the momentum of state laws restricting private listings in Connecticut, Washington, Wisconsin, and proposed measures elsewhere. Economic Liberties’ bill would ensure that:

• Listings are public on a nondiscriminatory basis, with limited exceptions for sellers who have made voluntary, informed decisions to list privately
• Individuals do not have to commit to representation by a particular brokerage or agent just to browse listings online, preventing conflicts of interest where buyers and sellers are pressured into using the same brokerage.
• Leaving out or misrepresenting how long a property has been on the market or its price history can violate state laws against unfair or deceptive business practices.

Read the full model legislation here.

Learn more about Economic Liberties here.