Homes.com will continue showing California homes for sale after all.
Two days after the California Regional Multiple Listing Service — one of the nation’s largest multiple listing services — said it was on the verge of cutting off Homes.com’s access to listing data over an alleged breach of contract, the MLS said in a statement it had reached an agreement to keep the data flowing.
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On Tuesday, REcore Solutions, the data servicer for CRMLS that facilitates the sharing of listings among CRMLS members, sued Homes.com parent CoStar. The company said CoStar was monetizing listing data for its own gain without contributing money back in return. The monetization occurred via Homes.com’s “boost” marketing program and a direct-mail campaign.
The company said in its complaint that it had tried unsuccessfully for years to reach an agreement with CoStar, and CRMLS said it would cut off Homes.com’s access to listing data on Nov. 1.
On Thursday, CRMLS said it had reached an agreement, and no disruption would take place.
“CoStar Group and CRMLS are happy to announce that they have renewed their long-term agreement under which Homes.com will continue to receive CRMLS listings,” CRMLS said in a statement. “An action filed Tuesday by REcore concerning such listings is being dismissed with prejudice. CoStar Group and CRMLS are delighted to continue their long-standing relationship with no interruption in the flow of CRMLS listings to Homes.com.”
The now-dismissed legal action centered on agreements around REcore’s fee structure that it says were created to compensate brokers who contribute listing data to the feed.
Entities like real estate portals that monetize MLS data but don’t represent buyers and sellers are required to pay for the data. Agents and brokers working with clients do not.
Specifically, the lawsuit referenced Homes.com’s revenue-generating efforts to have members and homesellers pay to boost listings through the platform. It also referenced mailers that Homes.com sent directly to sellers, an effort that Inman covered exclusively in July.
According to REcore, Homes.com had agreed to pay approximately $2 per listing displayed on the portal in exchange for its access to the feed that provides the listings.
REcore said that “Homes.com failed to pay the full amount they agreed to.”
Representatives for CRMLS, REcore and CoStar didn’t respond to questions about whether CoStar had paid the amount it allegedly owed. In its complaint, REcore asked for damages of at least $887,500.
