In
a
statement
released
Wednesday
night,

REcolorado
warned
Denver-area
Realtors
that
outside
ownership
of
the
local
MLS
could
bring
added
uncertainty
during
an
already
uncertain
time
and
suggested
that
their
data
could
be
compromised.

The
company’s
statement
says
it
supports
the
effort
to
decouple
the
local
MLS
from
the
two
local
Realtor
associations
that
own
it
—

Denver
Metro
Association
of
Realtors
(DMAR)
and
the

South
Metro
Denver
Realtor
Association
(SMDRA).
However,
REcolorado
said
it
objects
to

the
associations
selling
it
to
an
outside
private
equity
firm.

“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
statement
reads.

Tensions
that
have
been
boiling
for
years
between
REcolorado
and
the

Denver
associations
erupted
this
week
when
REcolorado
learned
of
the
sale
to
a
private
equity
group
because
it
accepted
an
offer
to
buy
the
MLS
in
February
after
being
approached
about
a
deal
in
January.

But
DMAR
and
SMDRA
cut
off
communication
with
REcolorado,
and
the
two
associations
reached
a
deal
with
an
unknown
private-equity
backed
group,
which
REcolorado
learned
about
late
last
week.
REcolorado
leadership
said
it
was
blindsided
by
the
deal.

“This
was
done
without
our
knowledge,
without
our
input,
nor
were
we
given
the
ability
to
compete,”
said
Shelly
Vincent,
vice
chair
of
REcolorado
and
vice
president
of
operations
and
employing
broker
for

HomeSmart
in
Colorado,
when
the
company
received
a
letter
of
intent
about
the
sale.

The
relationship
between
the
two
sides
has
gotten
increasingly
tense,
which
partly
drove
REcolorado’s
interest
in
buying
itself
out.
It
also
could
have
impacted
DMAR
and
SMDRA’s
decision
to
welch
on
the
deal
to
sell
to
REcolorado.
DMAR
and
SMDRA
even
rewrote
the
company’s
bylaws
in
2023. 

The
entity
buying
the
MLS
was
formed
in
January,
which
could
suggest
DMAR
and
SMDRA
weren’t
negotiating
in
good
faith.
A
private
equity
group
buying
an
MLS
has
never
happened
and
it’s
unclear
whether
the
firm
buying
REcolorado
is
interested
in
running
the
MLS
or
using
its
data.

REcolorado
board
chair
Mark
Trenda
and
Vincent
represented
REcolorado
in
negotiations
with
DMAR
and
SMDRA.
REcolorado
is
the
16th-largest
MLS
in
the
United
States
and
has
25,000
members.
It
was
launched
four
years
ago.

DMAR
and
SMDRA
released
a
statement
on
Tuesday
saying
that
the
sale
was
in
the
best
interest
of
association
members
and
MLS
subscribers
because
of

antitrust
litigation
tied
to
the

National
Association
of
Realtors
and

a
number
of
major
brokerages.

“This
is
a
decision
that
our
respective
associations
agree
will
help
provide
expanded
and
improved
service
opportunities
for
metro
Denver
realtors
and
licensees,
the
members
of
our
Associations
and
REcolorado
subscribers
that
depend
on
the
MLS
to
provide
the
vital
market
information
required
to
best
serve
consumers
in
their
home
buying
and
selling
process,“
the
statement
reads.

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