News about the sale of REcolorado is spreading quickly through the state and the industry. As your MLS partner, we value honest and transparent communication. REcolorado provided an update to our subscribers on July 1, and will continue to share updates as more information becomes available.
Below are some frequently asked questions about the sale of REcolorado and what it means for you as a subscriber. Rest assured, REcolorado will maintain the exceptional service you have come to expect throughout this transition and into the future as your MLS partner.
DMAR and SMDRA, REcolorado’s co-owners, have entered into an agreement to sell their respective shares of REcolorado to a private entity. Per a recent joint statement, they say:
After extensive conversations with the respective boards, including research and evaluation of long-term options, the Denver Metro Association of Realtors® (DMAR) and the South Metro Denver Realtor® Association (SMDRA), the shareholders of REcolorado, have agreed in principle through a letter of agreement to sell the Denver area Multiple Listing Service (MLS) to a private company.
MAZL, LLC, a private company formed specifically to acquire the MLS service. Headed by J. Burks, a leader in the real estate industry for more than 40 years, MAZL has agreed to purchase REcolorado from DMAR and SMDRA. We believe MAZL will support REcolorado with unwavering dedication to our customers, Colorado brokers, ensuring that the MLS remains a cornerstone of the real estate community with an even broader offering of services. It’s important to clarify that MAZL is not a Private Equity Firm but rather a private entity.
The MLS is an essential part of your business, and we remain committed to being your MLS partner. Our priority is to ensure that all subscribers retain full access to MLS data and functionality that is critical to their business. MAZL has shared its commitment to providing a broker-centric platform and assurance that REcolorado will continue to operate as a Multiple Listing Service, maintaining our core mission of delivering exceptional data, tools, and resources to our subscribers.
REcolorado and the purchaser understand that the MLS is an essential service and continuity is important. The Letter of Intent (LOI) includes a provision that the end user costs will either remain the same or be capped at a minimum annual increase.
REcolorado has submitted all necessary paperwork to opt-in to the NAR settlement. The protections REcolorado will receive by opting in will carry forward with new ownership and the company will comply with the terms of the settlement.
As complete shareholders of Metrolist, Inc./dba REcolorado, DMAR and SMDRA boards of directors and their respective and appointed leadership teams signed and submitted a joint, unanimous resolution removing all REcolorado board members from their position and duties, effective Friday, June 28. This decision and action were taken as a result of the violation of the board of directors’ signed obligations to maintain confidentiality.
A change in leadership is a common part of the transition to new ownership. Larry D. McGee, a former Chairman of the REcolorado Board of Directors and award-winning real estate broker, will serve as interim CEO during the transition. Once the sale is final, a new CEO will be named. The transitional Board of Directors includes:
- Brenden Bailey, CEO of Denver Metro Association of REALTORS®
- Jessica Reinhardt, past President of the Denver Metro Association of REALTORS®
- Melissa Maldonado, CEO of the South Metro Denver REALTOR® Association
- Janet Marlow, past President of the South Metro Denver REALTOR® Association
We strongly believe that this decision is the right one for the MLS, as the industry continues to advocate decoupling REALTOR® Associations and MLSs. As has been widely reported in industry reports and media coverage, decoupling MLSs and Associations could help protect MLS organizations from ongoing antitrust litigation. Separating could also improve MLS management, according to the latest Swanepoel Trends Report, which also recommended that MLSs be structured as for-profit businesses, while REALTOR Associations should be nonprofit organizations.
Information about the proposed sale was leaked to industry media outlets in violation of non-disclosure agreements. Confidentiality agreements are a standard part of these types of business transactions. Our commitment is to keep you informed as the process unfolds.
With the signed Letter of Intent (LOI), the parties continue conducting due diligence on every detail of the proposed sale and work toward a completed sale contract. The sale price and timeline for the completion of the transaction have not been disclosed.
The legal requirements and obligations of the sale process prevent us from sharing additional details at this time. Our commitment to each of you is to share those details as soon as possible.
DMAR and SMDRA have provided additional information relevant to their members in this joint document.