As reported by GlobeSt.com earlier this month, the CorcoranGroup joined with Douglas Elliman, and later the Halstead PropertyGroup and Bellmarc Realty, to create an MLS system. That's when thefun began--the four firms control 68% of NYC's residential realestate market, and the move created ripples of anxiety in theindustry. Some 45 residential real estate firms, including 16 ofthe top 20 in NYC, immediately formed an MLS Task Force to createtheir own system, also aiming for a January 2001 start-up.

Why the argument? Explains William Zeckendorf, chairman of BrownHarris Stevens, "Corcoran and Douglas Elliman were forming an MLS,and they owned it. We, meaning the other brokerage firms, were toldthat we should call them to sign up, and we didn't think that wasin the spirit of the MLS. We just didn't think it was fair for twoto make the rules for everyone."

Shortly after announcing their plans, Corcoran and DouglasElliman began recruiting people. One potential recruit, Joyce West,president and director of sales at Charles H. Greenthal & Co.,recounts the deal she was offered: "They felt a percentage ofeveryone's commission would go to the MLS and they would take thelion's share."