CRMLS Rejects Compass Request, Plans Legal Defense Fund

California Regional Multiple Listing Service rejected Compass, Inc.’s request to change how it enforces listing rules. CRMLS said it is preparing for possible litigation and plans to establish an MLS Cooperation Legal Defense Fund.

The dispute follows a Sept. 8 letter from Compass asking CRMLS not to enforce rules for submitting properties for sale to the MLS for cooperation. CRMLS said its Rule 7.9 already lets sellers authorize full public marketing without submitting a property to the MLS, which it says meets Compass’s request for “Office Exclusive” listings.

CRMLS argues that withholding a property while using cooperative data and controlling access to the seller and property amounts to free riding. It says this practice could weaken the MLS and that Compass’s proposed pay-to-play approach could undermine competition and trust.

The planned fund is intended to receive support from groups concerned with consumer transparency, equal listing access and open competition. CRMLS named legal-action programs, consumer advocates, attorneys, other MLSs, associations, vendors and portals as potential supporters.

CRMLS said it is still pursuing more amicable ways to resolve the claims while preparing for potential litigation.