California Regional MLS has refused Compass’ demand that it stop fining agents who advertise office-exclusive listings — homes kept off the MLS — to the public. Compass says it will file a federal antitrust suit if CRMLS does not agree by Oct. 6.
CRMLS announced the decision Wednesday in a press release. It was responding to a Sept. 8 letter to CRMLS CEO Art Carter from Nathan Eimer of the law firm Eimer Stahl, which represents Compass.
The letter says CRMLS violates federal antitrust law by fining agents “1 percent of list price, no less than $500 and not to exceed $2,500” for public marketing of office exclusives and by threatening punishment such as suspension or expulsion.
To avoid being named in a federal antitrust suit, CRMLS must confirm in writing by 5 p.m. EDT on Oct. 6 that it will not fine or punish agents for that practice, according to the letter. Compass copied officials at the Justice Department’s Antitrust Division and the Federal Trade Commission’s Bureau of Competition.
CRMLS, which serves more than 93,000 real estate professionals according to the organization, characterized Compass’ demands as advocacy for anti-competitive practices and “free riding.”
“Homeowners should be able to publicly market any listing — including office-exclusive listings — without their agent facing thousands of dollars in fines,” a Compass International Holdings spokesperson said in a statement. “Currently, MLSs supporting more than 350,000 real estate agents across 12 states allow sellers to publicly market any listing, and we believe all MLSs should follow their lead, giving homeowners more flexibility in how they market their homes and bringing more inventory to buyers.”
How each side defines an office exclusive
The two sides disagree over what an office exclusive is and how it can be marketed. Compass’ letter says the term has described listings kept out of MLS distribution for more than 50 years. According to the letter, those listings could be marketed to the public “however the real estate professional and homeowner legally wanted.”
The letter says NAR began using a narrower definition in August 2025: a listing where the seller has directed that the property “not be disseminated through the MLS and not be publicly marketed.” Compass argues that the change increases MLSs’ antitrust exposure.
CRMLS says its Rule 7.9, which governs when listings must be submitted to the MLS, satisfies Compass’ request for office-exclusive listings. In his response to Eimer, CRMLS Vice President and General Counsel Ed Zorn wrote that the rule allows the public marketing and advertising of a property without submitting it to the MLS for cooperation.
Zorn wrote that Rule 7.9 applies to exclusive listing agreements. Non-exclusive or open listings can be marketed to the public without being submitted, he wrote. Zorn described the rule as a way to prevent free riding by agents who use listing data contributed by competing brokers.
“CRMLS will not rewrite rules we believe support cooperation, transparency, access, and fair competition simply because defending them may be expensive,” Carter wrote in an op-ed published Wednesday. Compass’ letter states that the company “will spend millions of dollars to sue CRMLS and other MLSs” to accomplish its goals.
Both sides cite the Northwest MLS case
Both sides point to Compass’ lawsuit against Northwest MLS. Compass’ letter says NWMLS agreed to change its rules within five months of a March 19 court decision in that case. Zorn wrote that Compass agreed to settle the NWMLS suit eight days before sending its letter to CRMLS.
Based on his review, Zorn wrote, the NWMLS rules adopted in the settlement are more restrictive than CRMLS Rule 7.9. According to Zorn, they require submission of all for-sale properties and include no one-business-day window or no-cooperation listing option.
CRMLS outlines counterclaims and a defense fund
If Compass sues, Zorn wrote, CRMLS will file claims against the brokerage. Those include violations of California’s Cartwright Act and Unfair Competition Law, intentional interference, breach of fiduciary duty and breach of contract.
His letter directs Compass to preserve documents related to its three-phase marketing program in California and its dealings with real estate portals. It also covers any payments or offers of payment to non-Compass California agents outside ordinary transaction closings. Compass’ letter includes its own preservation notice directed at CRMLS.
CRMLS is also establishing an MLS Cooperation Legal Defense Fund. Carter wrote that the fund will help defend the cooperative model and pursue claims arising from the dispute. Zorn wrote that he has requested support from the California Association of Realtors Legal Action Fund and the NAR Legal Action Program.
CRMLS is asking buyers, sellers and buyer’s agents who say listings withheld from the MLS affected them to contact the organization.
CRMLS letter makes claims about Reffkin
Zorn’s letter also makes allegations about Compass CEO Robert Reffkin. Zorn wrote that CRMLS received direct reports that Reffkin, in meetings with Century 21 and Coldwell Banker franchisees, offered attendees $1,000 each to leave CRMLS and join the San Diego MLS.
Zorn also described meetings between CRMLS leadership, Reffkin and Compass Chief Legal Officer Ethan Glass. According to Zorn, Reffkin asked in those meetings that Compass coming-soon listings be withheld from all portals and IDX sites except Redfin.com. Zorn wrote that Reffkin said Compass could sell access to those listings to Redfin and Rocket.
The Compass statement did not address the allegations.
Compass’ other demands on MLSs
Compass sent a separate letter last week asking MLS organizations to exclude its listing and agent data from feeds provided to technology companies whose products help competing brokerages recruit agents. CRMLS told Inman this week that it did not receive that letter.
The CRMLS dispute dates to at least Nov. 24, 2024, when Compass made what Zorn called “an almost identical demand.” CRMLS posted the 2024 and 2026 letters from both sides, Carter’s op-ed and emails from Reffkin on a resources page.
Inman’s AJ LaTrace contributed reporting.
