The owner of the country’s 16th largest MLS plans to sell it to a newly formed private company called MAZL, which is run by a man named J. Burks.
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The owners of one of the largest U.S. Multiple Listing Service companies announced Friday that they have dissolved the organization’s board of directors, saying board members violated a confidentiality agreement as days grow closer to a contentious sale to a just-revealed buyer. Close.
The sale involves REColorado, which is owned by the Denver Metropolitan Association of Realtors (DMAR) and the South Denver Metropolitan Association of Realtors (SMDRA). News of the sale broke earlier this week and was confirmed to Inman on Tuesday by Shelly Vincent, vice chair of the REColorado board of directors.
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Vincent said she and others want to buy the MLS themselves and are considering legal action to block a sale to a private company.
However, DMAR and SMDRA leadership signed a resolution on Friday to “remove all REColorado board members from their duties and responsibilities effective immediately,” according to a statement provided to Inman and a FAQ circulating online.
The statement further stated that the REColorado board member was dismissed for breach of confidentiality agreement.
“While we are disappointed, we have made this decision based on the serious breach of confidentiality and signing of a confidentiality agreement by a representative of the REcolorado board of directors,” the statement stated. “We have made this decision in conjunction with the response of the REcolorado board of directors over the past few days. We believe this is in the best interest of our collective membership, our long-term ownership and operational objectives.”
The statement also revealed that the potential buyer of the MLS is an entity called MAZL, LLC. The statement described MAZL as a private company created specifically to acquire REColorado, noting that the company was founded by “J. Burks, a leader in the real estate industry for more than 40 years.
The FAQ sheet states that MAZL “is not a private equity firm, but a private entity.” However, neither that statement nor the FAQ sheet provides any further professional or personal information about J. Burks, and there is little doubt about the name. Web searches also failed to conclusively indicate who he might be.
Nonetheless, J. Burks was quoted as saying in the statement: “Our commitment to delivering a broker-centric platform remains strong.”
“We assure our subscribers that REcolorado will continue to operate as a multiple listing service, maintaining its core mission of providing superior data, tools and resources to real estate agents and licensees,” J. Burks said in a statement. “We are committed to ensuring MLS remains a trusted, broker-focused, true partner for our subscribers.”
Inman has requested more information about J. Burks and others and will update this story with any information provided by DMAR or SMDRA.
Inman also asked for clarification on REColorado’s executive team. Friday’s statement made no mention of personnel changes, but a confidential source told Inman that leadership was also being let go. real estate news It was also noticed for the first time on Friday that REColorado vice president and chief operating officer Leesa Baker had changed her LinkedIn status to “open for work.”
The sale of REColorado, which bills itself as the 16th largest professional soccer league in the United States, has been rife with controversy and questions for days. Part of the reason, according to Vincent’s comments earlier this week, was that she was part of a group trying to buy MLS when communications with the owners fell silent in February. The team was then rocked by news of a sale to another party.
A day after news of the sale to a private company broke, DMAR and SMDRA released a statement suggesting the sale was related to ongoing antitrust litigation related to commission litigation.
“We firmly believe that now is the right time to sell the MLS as the industry continues to advocate for decoupling from the real estate associations that have long owned the MLS,” the group said in a statement. “As has been widely reported in industry reports and media reports, the MLS Decoupling from the REALTORS Association could help protect MLS organizations from ongoing antitrust litigation.”
An FAQ circulated on Friday contained the same quote.
It also noted that REColorado’s owners “evaluated several legitimate offers for sale” and reached an agreement with MAZL because it “best meets the long-term needs and services of our members.”
The FAQ also noted that the confidentiality agreement was the reason DMAR and SMDRA members were not informed of the sale in advance, adding that news of the sale was improperly leaked to the media.
The FAQ sheet also states that the timeline for the REColorado sale and the price MAZL will pay have not yet been disclosed.
Please read the full FAQ sheet here:
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