REcolorado’s Acquisition Raises Questions about Data Ownership

On Friday the largest multiple listing service (MLS) in Colorado—and the 16th largest in the nation—officially changed ownership. REcolorado® was acquired by MAZL, LLC, three months after the deal was first announced. 

As concerns rise over data ownership and transparency, the new leadership under Joseph Burks pledges to enhance the service offerings for the 26,000 subscribers who depend on this vital platform.

Commitment to Subscriber-Centric Services

As the new owner, Burks has stated that the objective is to maintain and enhance REcolorado’s position as a trusted resource for real estate professionals. He emphasized a commitment to ensuring that REcolorado remains subscriber-focused, aiming to provide innovative services that align with the evolving needs of agents and brokers.

In a press release, Burks stated,

“We are committed to ensuring that REcolorado not only remains the foundation of Colorado’s real estate community but continues to set the standard for excellence and innovation as a subscriber-focused MLS. As a market leader, REcolorado has always been at the forefront of delivering top-tier services. Our goal is to collaborate closely with its exceptional team to strengthen the company even further, ensuring it continues to deliver MLS services that bring unparalleled value to its subscribers and their clients, adapting and innovating to meet the evolving needs of today’s real estate professionals.”

Joseph Burks

President

Following the acquisition, several key areas have been identified for improvement and focus:

1. Affordability
2. Data Security and Innovation
3. Subscriber Engagement
4. Local Support

Larry McGee, Interim President and CEO of REcolorado, expressed optimism about the acquisition, calling it a “pivotal moment” for enhancing service offerings.

Controversy of the Sale

The sale of REcolorado has stirred controversy within the industry. 

Before the acquisition, the Denver Metro Association of Realtors (DMAR) and the South Metro Denver Realtors Association (SMDRA) were the main shareholders of the MLS, and began looking for potential buyers for REcolorado at the start of the year. During this time, one of the parties they were negotiating with was the existing board of directors of REcolorado.

Although the board believed they had reached a verbal agreement to buy REcolorado in February, a sudden change of plan was announced in June—DMAR and SMDRA would sell to Burks instead. The news of the acquisition was leaked in July, leading to the dismissal of the entire board of directors, who allegedly violated a confidentiality agreement that was in place.

Data Ownership Concerns

Aside from the change in owners, concerns have arisen about data ownership and the implications of a new Participation Agreement—which needs to be signed by October 9th in order to keep access to REcolorado. This agreement transfers ownership of listings data from agents to the MLS, requiring agents to submit requests to license their own data—a move some industry experts view as problematic. Agents are now required to submit written requests to license their own data, which REcolorado has the discretion to approve or deny for any reason.

Rob Hahn broke down his concerns about the agreement in a recent Substack post, stating that, according to NAR’s MLS handbook, “the MLS has to give to the brokerage all of its own data. To be crystal clear, the brokerage owns the data, and the MLS is a ‘custodian’ of sorts. Therefore, the MLS must give that data back to the brokerage if/when the brokerage asks for it.”

Hahn expresses frustration that REcolorado now claims the right to audit brokers’ use of their own data, suggesting that this shifts the relationship from a service provider to a controlling authority. “This is not an MLS. This is a boss. Your lord and master,” Hahn wrote.

For more, read REcolorado’s Multiple Listing Service Participation Agreement in full below.