The Denver Metro Association of Realtors (DMAR) and the South Metro Denver Realtor Association (SMDRA) have signed a letter of intent to sell REcolorado, their multiple listing service (MLS), to a newly formed limited liability company (LLC) backed by a private equity firm.
According to combined media reports, the sale could be finalized in the coming weeks. A group of real estate brokers began negotiating with DMAR and SMDRA since December to buy back their shares in the MLS, but the discussions abruptly stopped in February.
The realtor groups signed their letter of intent to sell REcolorado in May but only announced their action last week.
“This was done without our knowledge, without our input, nor were we given the ability to compete,” said Shelly Vincent, vice chairwoman of REcolorado and vice president of operations and employing broker for HomeSmart in Colorado.
The 25,000-member REcolorado is the nation’s 16th largest MLS. The LLC that is poised to acquire the MLS was formed in January, and it is unclear what plans it has for REcolorado.
Several aspects of the acquisition deal are also unclear, specifically the severance packages for the REcolorado leadership.
“We are working with our attorneys on the legality of it and the very strong possibility of legal action,” Vincent said.
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