Key points:
- The Washington law prohibits marketing residential properties “to an exclusive group” of buyers or brokers unless it is simultaneously marketed to the general public.
- The text of the bill doesn’t mention portals or MLSs — and doesn’t explicitly define “public” marketing “because we didn’t want to box ourselves in,” its author said.
- Whether Compass will be allowed to continue its 3-phased marketing strategy in the state may eventually be determined by the Department of Licensing, or even by the courts.
A Washington state law restricting the use of private marketing practices in real estate went into effect today. The bipartisan bill was introduced in January, passed unanimously in the Senate 49-0 and passed by 92-1 in the House. Gov. Bob Ferguson signed it into law in March.
The law prohibits “marketing residential properties to an exclusive group of prospective buyers or real estate brokers, unless the residential property is also concurrently marketed to the general public and other real estate brokers,” with exceptions “as reasonably necessary to protect the health or safety of the owner or occupant.”
The language suggests that Compass’ 3-phased marketing strategy — which involves selectively pre-marketing listings before distributing them to the market at large — would run counter to the law.
Compass believes otherwise, but others in the industry aren’t so sure. It may take some time — and possibly litigation — to determine conclusively what marketing practices are and aren’t allowed when it comes to selling homes in Washington.
What the law says — and what it doesn’t
The new law clearly states that any residential property represented by a broker for sale must be marketed “to all members of the public and all other brokers.”
It also specifies that brokers “may not market the property to an exclusive group of buyers or brokers only” unless there is a health or safety concern.
The law does not include any language about listing portals, private listing networks or multiple listing services.
How Compass sees it
A spokesperson for Compass told Real Estate News that the brokerage supports the spirit of the law, which promotes the fair and non-discriminatory distribution of listings.
They also pointed out that the law doesn’t require brokers to put a property on any specific portal or MLS — which, in their interpretation, means listings can be publicly marketed through other channels.
“The new Washington law preserves homeowner choice,” the spokesperson said. “It affirms that homeowners in Washington can market their homes before listing them on the MLS or public portals.”
The Compass spokesperson also argued that, although listings are not widely distributed during the first two phases of its 3-phased marketing strategy, they are still available to the general public and all brokers when they reach out to Compass directly or visit their affiliated sites.
“Compass Private Exclusives and Compass Coming Soons are fully compliant with the new law,” the Compass spokesperson said in a statement.
The local MLS’s take
Northwest MLS, which serves most of Washington state and actively supported SB 6091, declined to comment on the legality of Compass’ 3-phased marketing strategy in Washington, but told Real Estate News the law “codifies” the MLS’s own standard of transparency “to all buyers and brokers.”
“NWMLS members already comply with the new law, as our existing rules reflect a longstanding commitment to full transparency and equal access to listings,” NWMLS CEO Justin Haag said in a statement. “NWMLS rules and the new law ensure an open, fair and comprehensive marketplace for residential properties that promotes competition and fair housing.”
NWMLS and Compass have been engaged in a legal battle since April 2025 when Compass accused the MLS of engaging in anticompetitive business practices by prohibiting pre-marketing and office exclusives. In April of this year, NWMLS filed a counterclaim against Compass alleging that the firm’s 3-phased marketing strategy is a “deceptive scheme” designed to conceal data from the public at large. Litigation is ongoing.
What the bill’s lobbyists and sponsors say
Washington Realtors came up with the idea for the bill, then pitched it to a bipartisan group of legislators and drafted the language for it, the association’s president, Ryan Beckett, told Real Estate News.
He acknowledged that the bill’s nonspecific language might spur questions, but he said it was drafted that way by design.
“Some of that language was purposefully vague because we didn’t want to box ourselves in with a specific definition for public marketing because we know that might look different 10 years from now,” Beckett said. “So we’re looking at this in a very long-term perspective and hoping that the law can last with the evolving market.”
Real Estate News also reached out to a handful of the bill’s initial sponsors, including Sen. Marko Liias (D), Sen. Jessica Bateman (D), Sen. Emily Alvarado (D) and Sen. John Braun (R).
A representative for Sen. Bateman’s office said the new law would likely impact some brokerages’ marketing strategies, noting that while the law does not require listing on the MLS, “if a property is being marketed through word-of-mouth channels, brokerage networks, or other limited channels, it must also be marketed to the general public at the same time.”
The law does not impact private-party sales between buyers and sellers who know each other, the rep added.
A true test of the law may be years away
Getting a definitive answer to what’s allowed under the new law could take years, Alloy Advisors Co-founder Russ Cofano told Real Estate News.
Cofano, a longtime industry executive and former general counsel for eXp, agreed that the language in the law is vague — which allows brokerages like Compass to interpret it more liberally and claim that their practices are compliant, at least until the Washington State Department of Licensing or the legislature tells them to stop.
“If I was Compass, I’d be saying the exact same thing,” Cofano said.
The law does not define “private,” “public” or “marketing,” Cofano noted, so it’s unclear what lawmakers consider to be examples of those terms.
What the law is saying more broadly about a residential listing is that “consumers need to be able to find it and brokers need to be able to find it,” Cofano said.
Since Compass’ coming-soon listings are displayed on Redfin and the brokerage’s website, Cofano speculated that those listings may comply with the law — but the firm’s private exclusives might come under scrutiny.
“Is putting a yard sign out in front of a house — if that’s all I did as a broker — would that be defined as private marketing? Public marketing?” Cofano wondered.
Brokers may end up reporting Compass listings to the Department of Licensing, which would spur an investigation and eventually determine if the brokerage’s marketing practices fall in line with the law, Cofano said. It could even lead to litigation if the department tries to take action against Compass and the firm fights it.