Washington Governor Signs Ban on Private Listings
Washington Gov. Bob Ferguson signed the toughest-yet restriction on private listings in the state, as several others eye the move.
Ferguson signed Senate Bill 6091 on Monday. It prohibits real estate brokers from marketing properties to an exclusive group of brokers or prospective buyers, unless the property is concurrently marketed to the general public and all other brokers.
The bill carries an exception for listings that could threaten the owner's health or safety.
The state is the second with a private listings ban on the books. Wisconsin amended another statute to add a ban late last year. But Washington's goes further, treating violations as a professional conduct infraction under state professional conduct guidelines. That means a fine of up to $500 per violation, up to a license revocation, according to a bill report.
The Washington Realtors® supported the action, saying it promotes transparency in the marketplace.
More states eye bans on private listings
In the last few months, lawmakers have proposed similar private listing bans in Illinois, Hawaii, and Connecticut.
Summer Goralik, a real estate compliance consultant, tells Realtor.com® the Washington bill is a "warning shot" to the industry.
Given this scrutiny, it's important to have all compliance issues lined up to the letter. It might also be good to keep a record in the event of marketing a property exclusively, as it might attract scrutiny later on about how it came about.
More states are likely to examine the practice, Goralik said.
"When it's a business strategy, it just seems dirty," Goralik said. "Are you truly executing your fiduciary duty? Putting clients' interests above your own?"
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