New York State has advanced legislation that would fundamentally reshape how residential real estate is marketed and sold. The Fair and Transparent Real Estate Listings Act — progressing through the state legislature as of June 2026 — targets the practice of "pocket listings" and off-market transactions, requiring that residential properties be publicly listed on open platforms before any private sale can proceed. The only exception: a seller who provides informed written consent to forgo public marketing.

For Turkish investors, buyers, and developers active in the New York market, this legislation has direct and immediate practical consequences.

The core obligation under the Fair and Transparent Real Estate Listings Act is straightforward: before a residential property can be sold through a private or off-market transaction, it must first be publicly marketed on an open, publicly accessible platform — typically a Multiple Listing Service (MLS) or equivalent database — for a minimum period specified in the regulations.

The legislation creates a narrow exception for sellers who affirmatively choose to opt out of public marketing. To exercise this exception, the seller must:

• Receive a written disclosure explaining the financial and market implications of forgoing public exposure
• Provide signed, informed written consent to the off-market sale
• Have that consent documented in the transaction file and retained by the broker

Critically, the consent must be genuinely informed — brokers cannot obtain blanket waivers at the time of listing agreement signing. The disclosure must explain, in plain language, that public marketing typically generates competitive bidding and may result in a higher sale price.

Pocket listings — properties sold through private broker networks before public listing — have been a persistent feature of New York's luxury residential market. For high-net-worth sellers, the appeal is obvious: privacy, speed, and the avoidance of public price discovery. For buyers with access to broker networks, pocket listings offer the opportunity to acquire properties before they reach the open market.

The problem, from a policy perspective, is that pocket listings systematically disadvantage buyers without access to elite broker networks — disproportionately affecting first-time buyers, buyers from outside New York, and buyers from communities historically excluded from real estate networks. They also suppress price transparency and make it harder for sellers to know whether they received fair market value.

The National Association of Realtors (NAR) implemented a similar "Clear Cooperation Policy" at the federal level in 2020, requiring MLS members to submit listings within one business day of public marketing. New York's legislation goes further by imposing a statutory requirement with legal consequences for non-compliance.

The legislation requires significant changes to how New York brokers structure their business:

Seller Representation Agreements: Listing agreements must be revised to include the required disclosure language and a clear mechanism for sellers to provide or withhold consent to off-market marketing. Brokers who fail to obtain proper consent before facilitating an off-market transaction face potential license discipline and civil liability.

Buyer Representation: Buyer's agents who have historically relied on access to pocket listing networks as a competitive differentiator will need to reassess their value proposition. The legislation levels the playing field by requiring public exposure, reducing the advantage of broker network access.

Dual Agency: The legislation intersects with New York's existing dual agency disclosure requirements. Brokers representing both buyer and seller in a transaction where the seller has waived public marketing face heightened scrutiny regarding the adequacy of the seller's informed consent.

Commercial vs. Residential: The legislation applies to residential real estate. Commercial transactions — office buildings, retail centers, industrial properties, and multifamily buildings above a specified unit threshold — are not covered. Turkish investors focused on commercial real estate are unaffected.

Luxury Residential Acquisitions: Turkish buyers seeking high-end Manhattan condominiums, Brooklyn townhouses, or Hamptons estates have historically benefited from broker relationships that provided access to off-market inventory. Under the new legislation, this advantage is substantially reduced — most properties will be required to go through public marketing before sale.

Investment Property Acquisitions: Turkish investors acquiring small multifamily buildings (typically 1–4 units, which are classified as residential) will find that off-market acquisition strategies become more difficult. The competitive bidding environment created by mandatory public listing may compress acquisition yields.

New Development: The legislation does not appear to restrict developers from pre-selling units in new construction projects before public listing — a common practice in New York's luxury condominium market. However, the regulatory language is still being finalized, and developers should seek specific guidance.

Seller Consent Strategy: Turkish investors who own New York residential properties and wish to sell privately — for reasons of confidentiality, speed, or relationship-based transactions — retain the ability to do so, provided they comply with the informed consent requirements. Engaging experienced New York real estate counsel before listing is essential to ensure the consent process is properly documented.

As of June 2026, the Fair and Transparent Real Estate Listings Act is advancing through the New York State Legislature. The bill has passed committee and is expected to reach a floor vote in the current legislative session. If enacted, a transition period of 90–180 days is anticipated before the requirements become effective, giving brokers and sellers time to update their practices and documentation.

ULF New York will publish a detailed compliance guide for Turkish investors and property owners once the final legislation is enacted and implementing regulations are issued.