Denver real estate leaders fire entire board over MLS sale controversy

As the real estate industry grapples with the landmark settlement case changing the rules on agent commissions, tensions between Denver’s real estate leaders boiled over the future of the database where most homes for sale in Colorado are listed.

The Denver Metro Association of Realtors (DMAR) and South Metro Denver Realtor Association (SMDRA) announced Friday it fired the entire board of REcolorado — the multiple listing service accounting for more than 75% of residential sales in the state — as punishment for speaking out against selling the MLS to a private investor.

The organization signed a letter of intent with a company run by “J. Burke,” a real estate veteran of 40 years, to buy REcolorado.com , the organizations said.

DMAR and SMDRA, the parent companies of REColorado, explained it wanted to sell the organization as the industry pushes to separate Realtor associations from their MLS in the wake of the federal court’s ruling on the National Association of Realtor antitrust lawsuit.

A sale would help protect the MLS from antitrust litigation, DMAR’s website explains.

REColorado’s leaders attempted to buy the MLS from its parent company, but spoke out upon learning DMAR favored a deal with an out-of-state private investor instead.

“While we support a vision for decoupling the MLS from Realtor association ownership, selling your most valuable tool to a private equity firm is a questionable way to achieve that and may bring added uncertainty,” according to a statement posted on REcolorado’s website on June 26.

The statement has since been deleted following the board’s dismissal.

“We disagree with their approach and are dedicated to keeping REcolorado a broker-focused business partner and will continue to pursue all options to make certain your MLS remains a locally owned organization that is operated in your and your clients’ best interest,” the deleted statement said.

Following reporting from national trade publication HousingWire, DMAR and SMDRA fired the rest of REColorado’s board over breaking its confidentiality agreements and its public opposition against the sale.

“While disappointed, we have come to this decision based on the egregious violation of confidentiality and signed Non-Disclosure Agreement (NDA) carried out by a representative(s) of the REcolorado board of directors,” the organization’s said in a joint statement.

Burke, the new owner once the deal closes, said in a statement that they intend to keep REColorado an MLS.

It’s still not clear when the sale is expected to close or how much the deal is worth.

REcolorado submitted paperwork to opt-in to the NAR settlement for extra protections, which will transfer over to new ownership.

“We are dedicated to ensuring that the MLS remains a trusted, broker-focused, true partner that subscribers can rely on,” the statement from Burke said.

Representatives from DMAR did not respond to The Denver Gazette's request Monday for comment.