After Gov. Ned Lamont signed SB 340 on May 27, Connecticut also joined the list of states restricting pocket listings. The law requires home listings to be publicly accessible from the moment they begin marketing, and violations can result in fines of up to $5,000 or license suspension.
Connecticut Gov. Ned Lamont signed a bill on May 27 that requires residential properties to be publicly sold at the same time as private or selective promotions, joining a growing list of jurisdictions seeking to limit pocket listings.
Senate Bill 340 applies to residential properties of up to four units, covers the majority of residential transactions in Connecticut, and extends requirements to landlords who sell rentals alongside sellers who sell their homes.
Agents and brokers should make properties available to the public at the same time as the initial sale of the property, whether through social media, lawn signs, mass emails to multiple recipients, or a private network shared by two or more brokers. Platforms that require passwords or invitations do not meet our standards.
Sellers who wish to limit the visibility of their listings can sign an opt-out form that accepts trade-offs, such as fewer offers and possible lower sales prices. The law goes into effect on October 1, and agents and brokers who don’t comply face fines of up to $5,000 or license suspension.
The New York State Senate passed a similar bill on June 1, and it now heads to Governor Kathy Hochul’s desk. A similar law will go into effect in Washington state on June 11th. Wisconsin enacted public auction requirements in December, and Hawaii and Illinois are considering similar measures.
The bill was enacted amid an ongoing industry dispute. Zillow has lobbied for similar legislation in Washington and Wisconsin, casting the bill as a consumer transparency issue, according to state records. Compass’ three-stage marketing strategy includes a period prior to widespread distribution of the MLS, characterizing this push as an effort to limit competition and seller choice.
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