Compass, NWMLS settle 16-month legal battle 

Compass and the Washington state-based Northwest Multiple Listing Service (NWMLS) have settled their year-plus-long lawsuit, Compass announced on Monday.

A new marketing option

Compass and NWMLS have agreed to a settlement through the creation of a new listing status that will allow Compass agents to pre-market their properties without risk of being fined by the MLS. The new status, which will become effective Sept. 4, is called "First Look" and will be treated similarly to a coming-soon listing, according to a press release. 

When requested by the seller, the status allows showings for brokers and their clients, open houses and offers to be made on a property without incurring public price changes or days on market for up to 21 days while preparing for an "Active" status launch.

NWMLS clarified that days in the "First Look" status and any pre-launch price adjustments will be available internally to members of the NWMLS database but will not be published publicly. The MLS also said sellers can choose whether a "First Look" is published on IDX websites "or choose to engage in more tailored public marketing."

What Compass had to say

Compass International Holdings Chairman and CEO Robert Reffkin said the brokerage's goal in launching its lawsuit against NWMLS "has been fully realized."

"We brought this lawsuit on a fundamental principle: homeowners deserve the absolute right to control how their properties are marketed, and real estate brokers should never face fines from NWMLS simply for following their client's lawful instructions which in Washington State is their Statutory Duty," Reffkin said in a statement.

Compass "proudly invested millions" in the lawsuit, Reffkin added, "and it was worth it."

"MLSs are a group of direct competitors that are telling their competitors how they can and can not compete, which is the textbook definition of an antitrust violation," Reffkin continued. "MLSs exist to distribute listings, when the homeseller wants to use it, not to let brokerage competitors collectively dictate how other brokers compete in marketing services or how homesellers market their homes."

What NWMLS had to say

In a news release, NWMLS said the "First Look" status was created in response to member feedback — specifically amid shifting consumer expectations. 

"We are giving sellers the flexibility they desire when preparing a home for market, while steadfastly protecting buyers from private networks," NWMLS President and CEO Justin Haag said in a statement. "Simply put, First Look modernizes the pre-launch preparation process, while ensuring an open marketplace and fair competition, in full compliance with Washington State's open-market laws."

The MLS's announcement also noted that the new status enables NWMLS to resolve litigation with Compass "while reaffirming its commitment to an open and comprehensive marketplace, data integrity, and consumer protection across the Pacific Northwest."

Redfin weighs in

In a blog post published on Monday, Redfin also praised NWMLS's move to create the new listing status.

"This is exactly the kind of innovation sellers, agents and major industry players — including Redfin — have been calling for, and we salute NWMLS for pioneering a pro-consumer, pro-competition solution," said the post authored by Joe Rath, head of industry relations at Redfin parent Rocket Companies.

Back in April, Rath authored a separate open letter published on the company's website that implored NWMLS to change its pre-marketing policies, arguing in favor of "homeseller choice," a phrase used often by Reffkin. Redfin and Compass partnered in February to allow the brokerage's "Private Exclusive" and "Coming Soon" listings to be published on Redfin.

In his Monday post, Rath also reiterated an argument Redfin made earlier this year that providing sellers with more pre-marketing options could ultimately give for-sale inventory a boost.

How the lawsuit began

Compass sued NWMLS last April, alleging that the MLS engaged in anticompetitive business practices, obstruction of seller choice and retaliation through a temporary suspension of Compass' IDX feed. At the time, Compass claimed that it spent months trying to negotiate rule changes with NWMLS to allow for the brokerage's office exclusives, but NWMLS "simply refused."

Last June, NWMLS filed a motion to dismiss the lawsuit, but a judge denied the motion in March 2026.

Then, in April of this year, NWMLS filed a counterclaim against Compass, alleging that the brokerage's 3-phased marketing strategy violates the Washington Consumer Protection Act because it is a "deceptive scheme" designed to conceal data from the public at large. NWMLS also argued that its own MLS rules were reaffirmed through a new state law seeking to restrict private listings.

Other settlement details

In addition to the new listing status, several other terms were agreed to as part of the settlement.

By Oct. 15, NWMLS has agreed to require all portals and real estate websites that use the MLS's data to clearly and prominently display the name and contact information of real estate brokers on a listing, and immediately next to any contact broker buttons so that buyers have clear and direct access to the listing broker.

By that same date, NWMLS must also stop placing its watermarks on listing photographs to "[ensure] that NWMLS does not take credit for the work of real estate professionals."

NWMLS is further obligated to apply its rules across all brokerages in the state of Washington to ensure they receive equal treatment, and it will be prohibited from taking legal action against Compass or its real estate professionals "under the guise of 'enforcing state law,'" Compass said. The point references the new Washington state law that took effect in mid-June, which seeks to limit the use of private marketing practices in real estate. The language of the law, however, is vague, and therefore how much it may curb private listings in practice is uncertain.

By Nov. 15, NWMLS must also "give broker platforms the data fields and supplements that are relevant for brokers to do their jobs (eg, Legal, Firpta, 22k, 22j, Prelim, Surveys/maps, Resale cert), unless legally prohibited," Compass said, so that brokers don't have to access multiple systems to complete their work functions.