Compass Claims Its Private Exclusives Are Exempt From Washington's New Private Listings Law
A significant new real estate law has taken effect in Washington State, one that fundamentally changes how properties can be marketed and sold within the state. The legislation, signed by Governor Bob Ferguson in March 2025, prohibits real estate brokers from marketing homes to exclusive groups of agents or buyers unless those same properties are simultaneously made available to the general public. But almost immediately after the law took effect, brokerage giant Compass pushed back — arguing that its signature "Private Exclusives" and "Coming Soon" listing programs do not fall under the law's restrictions. The disagreement has placed one of the country's most prominent real estate companies at the center of a growing debate about transparency, market access, and the future of how homes are bought and sold.
What Is Washington State's New Private Listings Law?
Known formally as Senate Bill 6091, or SB 6091, the new Washington State law represents one of the strictest attempts by any state in the country to rein in the growing practice of private or "pocket" listings. Under the law, real estate brokers are prohibited from marketing a property exclusively to a select group of buyers or agents. If a home is going to be marketed at all, it must be marketed concurrently and openly to the general public as well as to all other brokers.
The intent behind the legislation is rooted in concerns about market fairness and equity. Critics of private listings have long argued that these arrangements benefit a small, well-connected circle of buyers — often wealthier individuals with access to exclusive brokerage networks — while shutting out average buyers who rely on public listing platforms like the Multiple Listing Service (MLS). In markets already strained by low inventory and rising home prices, this kind of gatekeeping can have a real impact on who gets access to available homes.
There is one notable exception built into SB 6091: a property can be withheld from general public marketing if doing so is necessary to protect the owner's health or safety. This provision acknowledges that there may be rare circumstances — such as when a seller is a public figure facing security risks — where full public disclosure could pose genuine dangers. Outside of that narrow exception, however, the law casts a wide net.
How Compass Responded to the New Law
Compass, the largest residential real estate brokerage in the United States, has built a significant part of its brand identity around its Private Exclusives program. According to the company's own marketing materials, Private Exclusives allow home sellers to "test price, gather insights, and build anticipation before going public." The model essentially lets sellers quietly market their homes within Compass's internal agent network before ever listing on the MLS or other public platforms.
Following the enactment of SB 6091, Compass issued a position stating that its Private Exclusives and Coming Soon listings do not violate the new law. The company's argument appears to center on how the law defines marketing to an "exclusive group." Compass contends that because its network of agents spans a large number of buyers and professionals, its internal marketing model does not constitute the kind of restricted, exclusionary practice the law was designed to prohibit.
This is a significant claim, and one that is likely to face scrutiny from regulators, competing brokerages, and consumer advocates in the weeks and months ahead. Whether Compass's interpretation holds up legally remains to be seen.
Why Private Listings Are So Controversial
The debate over private listings is not new, and it extends well beyond Washington State. The National Association of Realtors (NAR) has grappled with this issue through its Clear Cooperation Policy, which requires agents who are NAR members to submit listings to the MLS within one business day of publicly marketing a property. However, enforcement of that policy has been inconsistent, and large brokerages like Compass have repeatedly tested its boundaries.
Proponents of private listings argue that sellers should have the right to control how and when their property is marketed. There are legitimate reasons a seller might want a quieter, more discreet sale — avoiding open houses, limiting public knowledge of a pending move, or simply gauging market interest before committing to a full public listing. From this perspective, Private Exclusives are a seller's choice and a value-added service offered by the brokerage.
Opponents, however, argue that private listings fundamentally undermine market transparency and create a two-tiered system where affluent, connected buyers get first access to desirable properties. They also raise concerns about potential fair housing implications, noting that when homes are sold quietly within exclusive networks, it becomes harder to ensure that all qualified buyers — regardless of background — have equal access to housing opportunities.
What This Means for Washington State Home Buyers and Sellers
For everyday buyers and sellers in Washington State, the new law could have meaningful practical effects — depending on how it is ultimately enforced and interpreted. If SB 6091 is applied broadly, sellers working with any brokerage, including Compass, would be required to list their homes on the MLS and public platforms at the same time any private marketing begins. This would give more buyers a fair shot at discovering and competing for available homes.
For sellers, it means less flexibility to run a quiet pre-market period to test pricing or build buzz privately. However, advocates for the law argue that the trade-off is worth it: a more transparent market ultimately benefits sellers too, because wider exposure typically generates more competition and stronger offers.
The Broader Implications for Real Estate Across the Country
Washington State's decision to codify private listing restrictions into law could signal a broader shift in how states regulate real estate marketing practices. If Compass's challenge to SB 6091 fails — or if the law is upheld and successfully enforced — other states may look to Washington as a model for their own legislation. Conversely, if Compass's interpretation prevails, it could embolden brokerages elsewhere to continue and even expand private listing programs.
- Washington State's SB 6091 took effect in 2025 and prohibits private listings unless accompanied by concurrent public marketing.
- Compass, the largest U.S. residential brokerage, argues its Private Exclusives and Coming Soon programs are not covered by the law.
- The law includes a narrow exception for properties where public marketing could endanger the seller's health or safety.
- The dispute may set a precedent for how other states approach private listings and MLS transparency requirements.
- Consumer advocates say the law is a step toward a fairer, more equitable housing market for all buyers.
What Happens Next?
The confrontation between Compass and Washington State's new law is likely just beginning. Legal challenges, regulatory guidance, and potential enforcement actions could all shape how SB 6091 is ultimately applied in practice. Real estate professionals, buyers, and sellers across Washington State should stay closely informed as the situation develops. The outcome of this dispute will not only affect how homes are sold in Washington — it may very well help define the future of real estate marketing across the entire country.
For now, the key takeaway is this: Washington State has drawn a clear line around the concept of equal market access, and how that line is drawn and defended will carry consequences far beyond the Pacific Northwest.