REcolorado is the largest multiple listing service, or MLS, in the state, with over 26,000 subscribers. (Stock photo)
Colorado’s largest multiple listing service has a new owner in the wake of an industry settlement over commissions.
REcolorado announced on Friday that MAZL LLC — an entity established by Equity Title President Joseph Burks — had closed on its deal to acquire the company.
Multiple listing services, or MLSs, are organizations that maintain databases of information about residential real estate transactions that power public-facing sites such as Zillow. Real estate professionals, such as agents and appraisers, generally pay a fee to subscribe to MLSs, which were established to link agents representing sellers and agents representing buyers.
REcolorado was sold by the Denver Metro Association of Realtors (DMAR) and the South Metro Denver Realtors Association (SMDRA), which previously said that “decoupling MLSs and realtor associations could help protect MLS organizations from ongoing antitrust litigation.”
Earlier this year, the National Association of Realtors and other organizations agreed to settle litigation over alleged anti-competitive practices, including a requirement that commissions paid to buyers’ agents be set by the seller’s agent when a home is listed. That is no longer allowed after changes went into effect last month.
“We are confident that MAZL, LLC’s extensive expertise and forward-thinking approach will bring significant value to the MLS platform,” DMAR CEO Brendan Bailey said in a Friday statement. “Their leadership promises to create exciting new opportunities for the real estate community, enabling us to better serve our clients and succeed during this pivotal time for the industry.”
The sale process was messy. The pending deal was first reported by industry publications in late June. Shelly Vincent, then an REcolorado board member, told Real Estate News that the deal’s terms “scared the absolute hell out of us.” She told Inman that REcolorado leadership had been trying to buy the company back from the associations themselves when they learned that MAZL’s offer was being accepted.
Shortly after that, the realtor associations fired all REcolorado board members and named a new CEO. Amidst a wave of criticism, the associations, which said they were subject to non-disclosure agreements, released limited information about the deal — initially naming the person behind MAZL as “J. Burks,” despite no indication that Joseph Burks goes by that nickname.
Burks didn’t respond to an email after the sale was announced on Friday afternoon. A REcolorado representative said he was unavailable.
In a statement, Burks said: “We are committed to ensuring that REcolorado not only remains the foundation of Colorado’s real estate community but continues to set the standard for excellence and innovation as a subscriber-focused MLS.”
REcolorado has more than 26,000 subscribers, the company said in a news release.
Bret Weinstein, founder of Denver-based Guide Real Estate, was critical of the pending sale when it was made public months ago, and told BusinessDen Friday that his view hadn’t changed.
“There’s been very much a lack of transparency,” he said.
Weinstein said he’s particularly concerned about a new “participation agreement” that top brokers and appraisers are required to sign in order to continue using REcolorado.
Weinstein said he interprets the agreement to state that REcolorado will own the information that agents enter into the MLS, which he said has not previously been the case. Weinstein said he doesn’t know why REcolorado would want to own the data, but said he’s concerned about not knowing what Burks plans to do with it.
“I can’t guarantee that REcolorado owning that information is in the best interest of me as an agent, or the public at large,” he said.
On Sunday, after BusinessDen asked an REcolorado spokeswoman about the participation agreement, the organization published a blog post addressing some questions about it. REcolorado called the new agreement “not substantially different” and said it was updated to address the settlement, not because of the wishes of the organization’s new owner.
REcolorado is the largest multiple listing service, or MLS, in the state, with over 26,000 subscribers. (Stock photo)
Colorado’s largest multiple listing service has a new owner in the wake of an industry settlement over commissions.
REcolorado announced on Friday that MAZL LLC — an entity established by Equity Title President Joseph Burks — had closed on its deal to acquire the company.
Multiple listing services, or MLSs, are organizations that maintain databases of information about residential real estate transactions that power public-facing sites such as Zillow. Real estate professionals, such as agents and appraisers, generally pay a fee to subscribe to MLSs, which were established to link agents representing sellers and agents representing buyers.
REcolorado was sold by the Denver Metro Association of Realtors (DMAR) and the South Metro Denver Realtors Association (SMDRA), which previously said that “decoupling MLSs and realtor associations could help protect MLS organizations from ongoing antitrust litigation.”
Earlier this year, the National Association of Realtors and other organizations agreed to settle litigation over alleged anti-competitive practices, including a requirement that commissions paid to buyers’ agents be set by the seller’s agent when a home is listed. That is no longer allowed after changes went into effect last month.
“We are confident that MAZL, LLC’s extensive expertise and forward-thinking approach will bring significant value to the MLS platform,” DMAR CEO Brendan Bailey said in a Friday statement. “Their leadership promises to create exciting new opportunities for the real estate community, enabling us to better serve our clients and succeed during this pivotal time for the industry.”
The sale process was messy. The pending deal was first reported by industry publications in late June. Shelly Vincent, then an REcolorado board member, told Real Estate News that the deal’s terms “scared the absolute hell out of us.” She told Inman that REcolorado leadership had been trying to buy the company back from the associations themselves when they learned that MAZL’s offer was being accepted.
Shortly after that, the realtor associations fired all REcolorado board members and named a new CEO. Amidst a wave of criticism, the associations, which said they were subject to non-disclosure agreements, released limited information about the deal — initially naming the person behind MAZL as “J. Burks,” despite no indication that Joseph Burks goes by that nickname.
Burks didn’t respond to an email after the sale was announced on Friday afternoon. A REcolorado representative said he was unavailable.
In a statement, Burks said: “We are committed to ensuring that REcolorado not only remains the foundation of Colorado’s real estate community but continues to set the standard for excellence and innovation as a subscriber-focused MLS.”
REcolorado has more than 26,000 subscribers, the company said in a news release.
Bret Weinstein, founder of Denver-based Guide Real Estate, was critical of the pending sale when it was made public months ago, and told BusinessDen Friday that his view hadn’t changed.
“There’s been very much a lack of transparency,” he said.
Weinstein said he’s particularly concerned about a new “participation agreement” that top brokers and appraisers are required to sign in order to continue using REcolorado.
Weinstein said he interprets the agreement to state that REcolorado will own the information that agents enter into the MLS, which he said has not previously been the case. Weinstein said he doesn’t know why REcolorado would want to own the data, but said he’s concerned about not knowing what Burks plans to do with it.
“I can’t guarantee that REcolorado owning that information is in the best interest of me as an agent, or the public at large,” he said.
On Sunday, after BusinessDen asked an REcolorado spokeswoman about the participation agreement, the organization published a blog post addressing some questions about it. REcolorado called the new agreement “not substantially different” and said it was updated to address the settlement, not because of the wishes of the organization’s new owner.
