Illinois pocket listings bill returns with narrower scope 

A legislative effort to limit pocket listings in Illinois has resurfaced this session with a revised — and significantly narrower — set of requirements that could improve its chances of gaining traction in Springfield. 

The reintroduced bill, HB4964, would amend Illinois' Real Estate License Act of 2000 to require licensed listing brokers to advertise or market a for-sale property on a publicly accessible online platform within one calendar day of securing a brokerage agreement with the seller — unless the seller opts out via a designated disclosure form.

While the concept resembles last year's bill — which itself mirrored NAR's Clear Cooperation Policy in key ways — the new proposal includes changes that would limit the law to residential sales and softens some of its opt-out language.

Narrower scope is the biggest shift

Last year's version, HB3452, applied to agents representing a seller or landlord, meaning it covered both residential sales and rental leases. The new version narrows the scope significantly by removing landlords entirely and applying only to a "seller of residential real estate," limiting the bill to home sales rather than rentals. 

That change is likely to matter politically and practically by tightening the bill's focus around home sales — and around concerns about transparency, fair housing and consumer access to listings — rather than regulating marketing practices across the broader housing market.

Under the bill, a listing agent would also be required to share property information with buyer agents, respond to buyer agent inquiries, and make the property available for showings. 

Opt-out requirements are softened

Similar to last year's draft proposal, the new bill allows sellers to opt out of public marketing and keep a listing from being widely advertised online — but it no longer requires the seller to provide a specific reason, such as privacy or safety concerns.

Instead, sellers would simply have to submit a written request to withhold the listing from public marketing and sign a disclosure and opt-out form prescribed by the Illinois Department of Financial and Professional Regulation.

The disclosures would focus on the risks of reduced exposure, including warnings that buyer agents may not know the property is for sale, that the listing won't appear on public-facing home search platforms, and that reduced exposure could lower the number of offers and negatively impact sale terms. 

Zillow still involved in Illinois, points to other state proposals

Zillow — which Ill. State Rep. Lilian Jiménez, the bill's lead sponsor, listed as a key partner in last year's version of the proposal — has once again voiced support for the legislation, framing it as part of a broader national push for listing transparency.

In a statement provided to Real Estate News, a Zillow spokesperson argued that "hidden listing networks" harm consumers, pointing to the company's research showing that sellers in the Chicago area who don't list their home on the MLS lose an average of $6,619 on the sale.

"We're glad to see Illinois lawmakers join Washington and Wisconsin in leading the country's push for pro-consumer protections, to ensure that everyone can compete fairly for homes that would work for their family and budget," the Zillow spokesperson said, adding that keeping listings private "only benefits companies trying to pocket part of the agent fee for both the buyer and the seller."

The search giant's position is not new. The company has been publicly campaigning against pocket listings for years — including Chicagoland-based MRED's private listing network — and has been engaged in legal action against Compass over the handling of real estate listings and Compass' "Private Exclusives" effort. 

Last year, when the pocket listings bill first surfaced, Illinois Realtors expressed concerns about the legislation, suggested that it was designed to "codify a real estate portal's business model into state law" — reflecting a belief among some brokers and MLS leaders that portals have a financial incentive to keep listings in broad public circulation.

Washington state bill advances with unanimous committee vote

Illinois is not the only state to propose legislation aimed at limiting private listing practices.

In Washington state, lawmakers are considering SB6091, a bill designed to ensure public availability of residential listings. According to a Feb. 4 update from Washington Realtors, the bill recently advanced unanimously out of committee after being revised through a companion bill, HB2512.

Washington Realtors said it drafted an amendment to clarify that the public marketing requirement does not mean an owner must allow access onto the property or into a residence. The amendment also removes a provision specifying that failure to abide by the law would be a violation of the Washington Law Against Discrimination, noting that such language already exists in state law.

The amended bill has now advanced to the Senate Rules Committee, signaling continued momentum as lawmakers debate whether pocket listings should face new statewide restrictions, Washington Realtors said.