Homes.com has been sued for breach of contract by an MLS licensing vendor, alleging a failed payment by its parent company, CoStar Group.
The plaintiff is REcore Solutions, which provides licensing services for the California Regional Multiple Listing Service (CRMLS) and other MLSs. REcore alleges that CoStar agreed to pay for access to MLS listing data in January 2024, but has failed to pay the full amount agreed to.
REcore said:
[CoStar Group] company representatives verbally committed to paying for access to the MLS listing data, acknowledging the significant value provided by listing brokers and MLSs.
After more than a year of REcore’s efforts to negotiate a resolution, the company was left with no choice but to protect MLS data and the listing brokers who supplied it by filing a lawsuit against Homes.com and CoStar.
Both CRMLS and REcore are deeply disappointed by the reversal in position from Homes.com and CoStar. Despite CoStar spending millions on parties at REALTOR® events and over a billion dollars on the marketing of their services, they have refused to honor their financial commitment to REcore in which funds were intended to be shared with the listing brokers who contribute the very data powering Homes.com.”
The lawsuit also alleges that TEN-X, a licensed California real estate broker owned by CoStar.
Despite being licensed, REcore alleges in the filing that Ten-X “has not represented any buyer or seller in any real estate transaction utilizing the CRMLS database, and as a result Ten-X has not contributed in any way to the network effect for the benefit of CRMLS.CoStar, through their ownership of a broker Ten-X (a firm that does not actually provide any brokerage services to any buyer or seller using the CRMLS database), seeks to receive, and then monetize for their own profit the full access to all the CRMLS listing records without providing any corresponding network effect benefits to CRMLS.
CoStar has yet to comment on the case.
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