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REcore Solutions Takes Legal Action Against Homes.com and CoStar

REcore Solutions, LLC has initiated legal proceedings against Homes.com and its parent company, CoStar Group, alleging breach of contract concerning access to Multiple Listing Service (MLS) data. The complaint has emerged as a result of persistent frustrations and disappointment from REcore, which provides licensing services primarily for the California Regional Multiple Listing Service, Inc. (CRMLS).

Background of the Case

For several years, REcore has been operational in licensing systems tailored for MLSs, with a focus on enhancing access to MLS data for various stakeholders. Specifically, the company has instituted a fee structure that respects the contributions of MLS participants—such as buyer's agents and listing brokers—who play a pivotal role in the real estate transaction process.

REcore asserts that its pricing model is consistent with the principles endorsed by the U.S. Department of Justice, following the 2008 Consent Decree from the National Association of REALTORS® (NAR). Under this model, MLS participants are exempt from fees, while those entities leveraging MLS data for profit must pay for usage rights. Furthermore, any profits derived from this monetization are distributed back to the listing brokers.

The Allegations Against Homes.com

REcore claims that for two years, following CoStar's acquisition of Homes.com, representatives from Homes.com verbally committed to compensating REcore for access to MLS data. They recognized the significant value added by listing brokers and MLS services. Ironically, Homes.com previously criticized competitors for their practices involving IDX data feeds that monetized listings without compensating the listing broker partners.

Despite these assurances, Homes.com allegedly contradicted its stated intentions by applying for an IDX data feed, thus qualifying itself as a participant broker. Following this, Homes.com signed the REcore license agreement in January 2024, agreeing to pay a fee of approximately $2 for each MLS listed record displayed on its website.

However, Homes.com later failed to meet its financial obligations under this agreement, prompting REcore to take decisive action after an extensive period of unsuccessful negotiations.

Legal Implications and REcore's Action

As a measure to protect MLS data and the contributing listing brokers, REcore announced plans to terminate the data feeds to Homes.com and HomesPro, effective November 1, 2025. The company remains dedicated to ensuring that listing brokers maintain control over their MLS contributions. Should any listing broker wish for their data to be sent to Homes.com, REcore offers an option for establishing a Participant's Data Return feed without incurring costs or restrictions on monetization.

REcore expressed its disappointment regarding the change in Homes.com and CoStar's position, especially considering the latter’s significant financial investments in various marketing initiatives, which exceed the total annual budgets of both CRMLS and REcore combined. The litigation has put a halt to REcore's plans to initiate payments to CRMLS listing brokers, now postponed until 2026 due to the breach of contract by Homes.com. REcore stresses that any resources expended to defend these rights diminish the funds available to fairly compensate listing brokers.

Commitment to Fair Compensation

In light of these developments, both REcore and CRMLS reaffirm their collective mission to safeguard the rights of listing brokers to receive fair compensation for their essential contributions to MLS data. Despite the financial clout of CoStar, which reportedly generates revenues in just a few weeks that surpass the combined annual budgets of both entities, REcore continues to advocate for the integrity of MLS data while seeking resolution through legal channels.

About REcore Solutions

REcore Solutions LLC is recognized for its innovative MLS Software as a Service (SaaS) and data licensing solutions, specifically designed for MLSs and real estate associations. It provides a variety of customizable technologies built through collaborations with MLS leaders, and looks to improve data management, enhance security, and empower MLSs with improved technological oversight.

About CRMLS

The California Regional Multiple Listing Service (CRMLS) serves as a premier MLS in the United States, striving to provide essential services to real estate professionals across numerous associations and MLS organizations. For further details about CRMLS, visit their official site.