Multiple Listing Service Leaders Prepare for Increasing Real Estate Lawsuits

HousingWire reported that Multiple Listing Service leaders are preparing for an increase in legal challenges and regulatory scrutiny across the real estate industry. Legal experts at the CMLS Open House urged executives to engage in scenario planning. They stated that organizations must prepare for antitrust issues surrounding data access, broker cooperation, and participation rules. [1]

Federal regulators are actively reviewing industry practices. HousingWire reported that the Department of Justice and the Federal Trade Commission are reexamining existing guidelines for broker cooperation and competition. Legal experts urged planning around antitrust scenarios as government scrutiny continues to grow. [1]

Specific lawsuits and legal threats are already pressuring industry groups. HousingWire reported that Zillow filed an antitrust lawsuit against Midwest Real Estate Data, a Council of MLSs member, as well as Compass International Holdings. In addition, Compass Chief Executive Officer Robert Reffkin threatened to sue any Multiple Listing Service that does not yield to his demands by October 6. [1]

These growing disputes have caused many executives to keep their legal counsel on speed dial. Grokipedia notes that the term lawfare refers to the use of law as a weapon or tool to gain a strategic advantage. Wikipedia describes public relations as managing information dissemination to influence public perception during such public interest developments. [1][2][3]