Key facts
- Canopy MLS appointed Steve Byrd as its first CEO not affiliated with Canopy Realtors.
- The trend toward MLS consolidation is driven by factors like reducing risk, changing ownership structures, and brokers' fatigue with duplicate fees and differing rule sets.
- Stellar MLS expanded into Hernando County, Florida, after a merger that led to the discontinuation of the local single-association MLS.
- Emily Girard, CEO of Austin Board of Realtors and Unlock MLS, noted that consolidation prompts questions about ownership, governance, and control of MLSs.
- Separation between an MLS and its association does not always mean complete operational or ownership division; control and flexibility can vary.
- Canopy MLS and Canopy Realtors have maintained separate boards of directors since 2003, with Byrd's appointment as CEO further dividing the entities.
Multiple Listing Services (MLSs) and their affiliated Realtor associations are experiencing a significant evolution in their relationship, driven by industry consolidation and a growing emphasis on distinct governance structures. This shift is leading some organizations to separate operations more distinctly, while others are finding ways to manage different business models within shared ownership.
One notable example is Canopy MLS's appointment of Steve Byrd as its first CEO who is not affiliated with Canopy Realtors. Jerry Legrand, chief technology officer at Greater Louisville Association of Realtors/APEX MLS, views this as a victory for those advocating for a separation of "church and state" within the industry. However, Legrand also observes that many such separations are occurring more organically through MLS mergers, where associations might become one shareholder among others rather than the sole owner.
Legrand attributes the momentum for MLS consolidation to various factors, including reducing risk through joint ventures between associations, and brokers growing weary of paying duplicate membership fees and navigating disparate rule sets. The industry's recent upheaval has prompted a reevaluation of what is possible in the MLS and association space, fostering greater dialogue between neighboring geographic areas.
This trend was exemplified by Stellar MLS's expansion into Hernando County, Florida. This move followed the merger of shareholder West Pasco Board of Realtors (WPBR) and the Hernando County Association of Realtors (HCAR), which resulted in the discontinuation of the former Hernando County single-association MLS. Historically, territorial attitudes among associations could have prevented such a consolidation, but this is changing.
Emily Girard, CEO of Austin Board of Realtors (ABoR) and Unlock MLS, agrees that consolidations contribute to the evolving ownership and management of MLSs. She notes that these mergers naturally raise questions about business structure, ownership, governance, and control. Girard also points out that separation doesn't necessitate entirely different entities; the degree of control and flexibility granted to the MLS business is key, regardless of ownership structure. At ABoR and Unlock, despite shared ownership and leadership, there is a deliberate effort to maintain a "dividing line" between the association and the MLS, including separate financials and strategic plans.
Canopy MLS and Canopy Realtors, while sharing an owner, have taken separation further with separate boards of directors since 2003. Byrd's appointment as MLS CEO, with longtime CEO Anne Marie DeCatsye retiring, further divides the entities. Byrd believes this clearer governance leads to greater accountability and allows each board to focus on its fiduciary responsibilities. He highlights that MLSs focus on delivering products and services to participants, while associations are more political, focusing on advocacy and education. Establishing separate CEOs and executive committees preserves affiliation advantages while ensuring appropriate governance for each organization's mission. Byrd acknowledged these changes were implemented deliberately over several years.
Industry experts anticipate that as MLSs continue to consolidate and face legal scrutiny, more will adopt concepts of division. Girard suggests that associations and MLSs of all sizes can explore these questions without necessarily undertaking a full transition, finding ways to separate businesses without disrupting the entire structure.