Northern California MLS Expands Brokerages’ War Over Exclusive Listing Rules
MLSListings, a Northern California multiple listing service, filed an amended complaint on Oct. 30 joining six other MLSs in a lawsuit against Compass in the U.S. District Court for the Southern District of New York. The original suit, filed Oct. 21 by Arizona Regional Multiple Listing Service, BridgeMLS, Canopy MLS, Doorify MLS, Hive MLS, and REcolorado, accuses Compass of pressuring the organizations to stop fining agents who violate pre-marketing and listing submission rules. MLSListings said it received a demand letter from Compass on Sept. 8.
MLSListings President and CEO Dave Wetzel said publicly marketed homes withheld from the shared marketplace harm buyers, sellers, and smaller brokerages. Compass countered that seven of the top 25 MLSs, covering 340,000 agents across 12 states, already permit agents to publicly market office exclusives without fines. The brokerage said none of the problems the plaintiffs warn about have materialized in those markets.
Compass said it plans to file a motion to dismiss in the case. The dispute reflects growing tension over how MLSs enforce data-sharing rules that have historically formed the foundation of brokerage cooperation. Separately, three Compass-affiliated agents plan to request a judge quash subpoenas issued in the National Association of Realtors’ legal battle with ThePLS.com.
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