Update on the Pending Sale of REcolorado to MAZL, LLC

Dear DMAR Members,

We are writing to our members today to address and provide as much information as we can about the pending sale of REcolorado, despite a Non-Disclosure Agreement (NDA) that limits certain details.

We understand your concerns and confusion. This transaction represents a significant development for the industry, and we acknowledge the high level of interest, and the circulating questions and misconceptions. First and foremost, we hear your feedback and apologize for any distress caused by this news.
 
To ensure transparency, we are addressing the vast amount of misinformation and concerns directly to clarify the intentions behind this pending sale with MAZL, LLC, its leader and sole purchaser, Joseph E. Burks, and DMAR and SMDRA’s involvement in the process.

Our Why
The decision to sell REcolorado comes at a time when the real estate industry is undergoing significant transformation. Decoupling the MLS from our Realtor® Associations aims to protect REcolorado from ongoing antitrust litigation and improve its management. By partnering with MAZL, LLC, we seek to leverage their expertise and resources to enhance the services and technological advancements available to our members. We believe the Associations should focus on providing education, advocacy and resources to best serve our members, allowing the MLS to operate as a separate entity. This move will ensure that REcolorado remains a foundational component of our real estate community, providing advanced tools and resources to support Colorado Realtors® and licensees. Our goal is to maintain stability while expanding the MLS's offerings to meet the evolving needs of the industry.

Clarifying MAZL's Role and Intentions
Firstly, as noted in our public FAQ, MAZL, LLC, is a private company formed specifically to acquire the MLS service. Joseph E. Burks is the sole and only purchaser of REcolorado. He created MAZL, LLC specifically to execute the Letter of Intent (LOI) and complete the business transaction. There are no other investors. The funding for this purchase is coming from a commercial bank, as is typical for a corporate entity making a business transaction.

Joseph E. Burks is a leader in the real estate industry with over 40 years of experience, particularly within the Colorado title industry. He is also one of the largest shareholders in the early creation of CTM eContracts, a widely used contract software for real estate transactions. He currently serves as the President of Equity Title of Colorado and is an affiliate member of SMDRA. Joseph E. Burks’ intention is to support Colorado Realtors® and licensees, ensuring that REcolorado remains a cornerstone of our real estate community with an even broader offering of services and technological advancements.

Transparency and Communication Moving Forward
We understand that the initial lack of communication about the pending sale of REcolorado, MAZL and Joseph E. Burks specifically has been perceived as secrecy and has been an ongoing source of frustration this past week, and we apologize again for limited communications. This, again, was due to confidentiality obligations to the potential buyer, which we followed under legal counsel and a signed NDA. However, we acknowledge that this has led to speculation and theories not based in fact, and we commit to releasing information to our member base as soon as we are able.

We want to continue to address and clarify several points and dispel other current misconceptions as follows:

• We emphatically deny all accusations and rumors suggesting that either the DMAR or SMDRA Board of Directors or leaders have any financial gain to be made from this sale. That is simply untrue and goes against the foundational principles of a member-based organization. Proceeds from the sale will be used in accordance with IRS guidelines. The Associations (DMAR and SMDRA) are committed to using proceeds of the sale to enhance member benefits through education, market information, tools and services and advocacy efforts to benefit our members and the Colorado real estate industry as a whole.
• Both the DMAR and SMDRA Boards of Directors were presented with and gave near-unanimous approval for the proposed deal with MAZL, LLC. Moving forward, the Boards will remain actively involved in the sales process, ensuring their approval at every stage.
• The pricing for MLS services will remain competitive. As stated in the FAQ, the LOI includes provisions to keep end-user costs stable, with any increases capped at a minimum annual rate.
• The parties are currently in the due diligence phase and working towards a finalized sale agreement. The sales price, transaction details and timelines are protected under the NDA attached to the pending sale and must remain private and confidential.
• DMAR/SMDRA has retained the Colorado law firm of Goodspeed Merrill to manage the Merger and Acquisition process. Engaged from the outset of the transaction, Goodspeed Merrill has provided expert guidance, ensuring a seamless and efficient process for all parties in the transaction.

Data Usage and Privacy
We understand that there are many concerns regarding data use and privacy. REcolorado will continue its normal operations during the sales transaction period. Furthermore, Joseph E. Burks wanted to address these concerns directly and has asked that we share the following statement on his behalf.

“Be assured that MAZL, LLC, is committed to honoring the current REcolorado data and privacy policies. These policies are essential to the functioning of the MLS and the third-party integrations needed for broker tools. Our primary focus for data licensing will be to meet the needs of the brokers and, ultimately, the consumers they serve. This means that any data collected, including listing, brokerage and subscriber data, will be available solely for allowed uses and will not be:

• Altered in its current form.
• Shared with any third party outside of the licensed data policy.
• Used for any purpose beyond what was disclosed in the data collection process.

We are committed to transparency and user trust. This policy ensures that your data remains secure and protected.”

We hope this begins to clear up the confusion and misinformation that has been circulating. Further communications are in the works to keep you fully informed as we move through this transition and as each step progresses.
 
We kindly ask for your patience and understanding as we navigate the due diligence process. Your support and trust are crucial as we work towards enhancing our services and maintaining the integrity of our community.

Sincerely,

Brendan Bailey, CEO of Denver Metro Association of Realtors®
Jen Routon, Board President, Denver Metro Association of Realtors® and Denver Realtor®