Settlement! Compass Real Estate and Northwest Multiple Listing Service End Their Dispute.
I previously said in my purported “final article” here that I would likely not blog further about the legal dispute saga between Compass Real Estate and Zillow. I had previously blogged about that case here, here, here, here, and here. To be fair, this blog post is not about that lawsuit. It is, however, related in the fact that Compass Real Estate and the Northwest Multiple Listing Service (“NWMLS”) have finally ended their dispute related to the same subject matter. I leave it up to the reader whether I spoke too soon or not.
As discussed before, Compass created a private portal for its agents and their clients where real property sellers could engage in “pre-marketing” efforts to test the waters before listing to the public generally through the multiple listing service, and in Washington State, through the NWMLS specifically. The NWMLS has a policy known as “clear cooperation” where listings must show up on the NWMLS one day after being made available to the public. When Zillow instituted a policy banning listings that did not follow clear cooperation, Compass filed suit claiming anticompetitive practices. After Compass failed in its attempt to obtain a preliminary injunction against Zillow, the parties subsequently settled, with Zillow reversing its policy. Compass also entered an alliance with Redfin discussed in more detail in my previous blog post, wherein Redfin would get exclusives and access to Compass clients, and Compass would benefit from additional listings.
With these parties now playing nice, Compass and the NWMLS have now settled their own roughly 17-month long dispute. Traditionally, the NWMLS has not allowed any pre-marketing real estate listings, a policy consistent with the operations of Zillow and Redfin who take their information from multiple listing services. Much like in its suit against Zillow, Compass sued the NWMLS in a lawsuit in April 2025, alleging anticompetitive practices in the Seattle area. Like Zillow, NWMLS rejected the position, stating that its actions promoted competition and transparency by providing all brokers with equal access to listings.
The parties have now resolved their dispute with several new terms. First, and foremost, on September 4th, the NWMLS will establish a “First Look” status, where agents can market properties as coming-soon listings. During this time, the listing will not show: (1) the number of days on the market; or (2) changes in price. Moreover, sellers will have the ability to show houses and accept offers during the First Look period.
Additionally, by October 15th, the NWMLS will require all websites and portals using the NWMLS to clearly feature listing agent names and contact information and will remove their watermark from photos, and by November 15th, it will further provide various supplements to brokers to assist them, such as surveys, maps, resale certificates, and more. More details are likely to become available as the settlement is formalized in court. We will continue to keep you apprised as further developments occur with respect private listings in Washington State.
The lawyers at Beresford Booth have significant experience with real estate transactions and disputes, including those involving the purchase and sale of residential and commercial real estate. If you need any legal assistance, please do not hesitate to contact us. Please feel free to contact Beresford Booth at info@beresfordlaw.com or by phone at (425) 776-4100.