For Alkema, the central question in this lawsuit is whether private listings are a marketing choice or a serious threat to consumers. According to Alkema, private listings and listing practices outside the MLS fall into the latter category.
According to Alkema, private listing networks are creating a “shadow marketplace,” which he says increases the dual role of real estate agents, reduces competition and suppresses sales prices.
These effects pose the greatest threat to the senior housing seller community, according to Alkema, who is a senior herself. He states that hiding a senior’s listing, which is often their most important financial asset, can cause them to lose value when they sell their property. According to his letter, this could be viewed as financial abuse of the elderly, in addition to a possible breach of fiduciary duty by the listing agent.
Therefore, in the court order, Alkema asks Compass to release information about the sale of its listings outside the MLS. This includes how many non-MLS listings there are and what price differences exist between these sales and comparable MLS sales.
He also asks the court to require Compass to prove that off-MLS listings “do not harm” consumers, especially seniors.
It remains to be seen whether the court will accept this amicus filing. Judge Jeannette Vargas, who is overseeing the lawsuit, is currently considering evidence and arguments presented during a four-day hearing last month regarding Compass’ preliminary injunction.
The brokerage is trying to prevent Zillow from enforcing its policy on listing access standards. A ruling on this motion is not expected for several weeks.
#CompassZillow #lawsuit #highlights #risks #seniors