The explosive era for Denver’s multiple listing service (MLS) has concluded, but a more controversial one may be on the horizon.
REcolorado has officially been sold to the Joseph Burks-owned entity MAZL, as announced on Friday, following the dismissal of the board of directors by the two Realtor associations that previously owned the MLS over an alleged breach of confidentiality agreement.
“We are dedicated to ensuring that REcolorado remains the cornerstone of Colorado’s real estate community and continues to uphold excellence and innovation as a subscriber-focused MLS,” Burks stated in a press release.
The Denver Metro Association of Realtors (DMAR) and South Metro Denver Realtors Association (SMDRA) were the majority shareholders before the sale to Burks and MAZL. The process of selling REcolorado began at the start of the year.
During negotiations, one of the interested parties was the existing board of directors, who believed they had a deal in February to acquire the MLS. However, DMAR and SMDRA surprised everyone in June by selling to Burks, leaving the board blindsided.
Following the leak of the sale to the real estate blog Vendor Alley,, DMAR and SMDRA ousted REcolorado’s board and leadership, citing the leak as a breach of confidentiality agreement.
Sources revealed to HousingWire in June that years of tension between the parties influenced DMAR and SMDRA’s decision to sell to Burks instead of the board. The board cautioned Denver-area agents that private ownership of REcolorado could have negative repercussions, particularly in terms of data security.
Although this chapter has closed, Burks’s MAZL has already stirred controversy among Denver-area agents with its new participation agreement. Real estate consultant Rob Hahn suggested in a Substack post that the agreement could violate National Association of Realtors rules if REcolorado was still owned by DMAR and SMDRA.
The new agreement, which agents must sign by Oct. 9th, transfers ownership of listings data from the listing agent to REcolorado. Additionally, agents are required to request a license for their data, which the MLS reserves the right to deny for any reason.
Listings data is a crucial asset for MLSs, and it likely factored into MAZL’s decision to purchase REcolorado. However, NAR’s MLS handbook states that an MLS cannot restrict an agent’s access to their own data.
“[The agreement] does not equate to data ownership by the broker,” Hahn noted. “This is not an MLS. This is a boss. Your lord and master.”
The impact of the new participation agreement on the data-sharing agreement REcolorado signed with four other MLSs in January remains uncertain. REcolorado did not provide a comment on the participation agreement by the time of publication.
While the details of the new agreement are still circulating among Denver agents, concerns arose in June over the sale to MAZL and Burks, exacerbated by changes in MLS operations related to NAR’s $418 million antitrust settlement.
These changes to the participation agreement may intensify those concerns.
“The issue runs much deeper,” stated Denver agent Dave Ness. “ReColorado is the sole MLS in the Greater Denver area, creating a potential monopoly. That’s the real problem.”
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