Joint Statement on the Prospective Sale of REcolorado

First and foremost, we want to apologize to each of you as our members that we were not able to share the news of what has now been reported in industry publications regarding the proposed sale of REcolorado. Unfortunately, this information was disclosed in violation of the non-disclosure agreement and the legal practice of such negotiations.

At this time, we can share with you the following information and a commitment to communicating additional details regarding this proposed agreement as the process unfolds. 

After extensive conversations with the respective boards, including research and evaluation, 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 entity. 

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.

Having completed our due diligence as shareholders, we feel confident in the Letter of Intent (LOI) and that the proposed buyer has committed to the long-term operation of the MLS service for our professional brokerage community and that the resources of the MLS will be used to enhance the service offerings to all subscribers and that the company will not be resold.

We strongly believe that this is the right time to sell the MLS, as the industry continues to advocate decoupling from the Realtor® Associations that have long owned the MLS. As has been widely reported in industry reports and media coverage, decoupling MLSs and Realtor® 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.

Additional details regarding the buyer and agreement will be announced soon; however, due to the legal obligations of the LOI and our process, we cannot comment further at this time.