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Overview
Rob and Greg break down Compass's newly filed lawsuit against CRMLS in the Central District of California. They cover the eyebrow-raising $175 million figure tied to commission settlement costs and why Rob thinks Compass has a strong case that's badly packaged. They also debate MLS "transparency" claims and OneHome, revisit precedent from Cantor v. Multiple Listing Service of Dutchess County and RealComp, and look at what MLSs facing Compass threats, like Unlock MLS and OneKey MLS, should do next.
Key Takeaways
- Compass's suit against CRMLS shifts the main legal action to California.
- Compass appears to seek recovery of commission settlement costs (Sitzer/Burnett, Gibson) from MLSs.
- Rob sees strong arguments in the complaint but a weak, overly combative narrative.
- The complaint doesn't explain why CRMLS's board would adopt rules that bind its own members.
- Rob argues MLS transparency claims fail because consumers can't join MLSs directly.
- Greg counters that OneHome gave roughly 12 million consumers CRMLS data access in a year.
- Rob says an MLS's customer is the agent who pays, not buyers or sellers.
- Cantor v. MLS of Dutchess County struck down a rule that had little to do with the cooperative: mandatory MLS yard signs.
- The core question is whether MLSs should regulate how properties are marketed.
- NAR's 2004 change, dropping the advertising restriction from the 14 points, was followed by DOJ action.
- Greg questions whether MLSs can negotiate in good faith with Compass, given its shifting demands.
- Rob urges MLSs to try to avoid costly litigation before going to "war."
- Greg notes MLSs feel squeezed between Compass suits and potential seller lawsuits.
- The 1983 FTC Butters Report shows the MLS is anti-competitive by design but delivers major consumer benefits.
- Rob predicts private and office-exclusive listings will grow, driven by buyer demand in a K-shaped economy.
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