Key Details:
- CoStar and Homes.com allegedly owe REcore at least $887,500 in unpaid MLS licensing fees for 2024 and 2025, having paid only $75,000 last year and $37,500 this year.
- REcore will delay broker payments until 2026 and terminate Homes.com data feeds on November 1, 2025.
- The lawsuit cites unauthorized use of CRMLS listing data in printed ads and AI training, and claims CoStar’s promises were broken following its acquisition of Homes.com.
CoStar now finds itself, along with Homes.com, on the defendant list of a new lawsuit.
REcore Solutions, a vendor providing licensing services for California Regional MLS (CRMLS), is suing Homes.com and its parent company CoStar Group, alleging a breach of contract over unpaid fees.
Homes.com consented to pay about $2 per MLS listing record displayed on its site. That licensing agreement began in January 2024.
Since then, as REcore claims, Homes.com has failed to pay the full amount owed.
A Breakdown of the Lawsuit
REcore filed the breach of contract lawsuit on October 21, 2025, in San Bernardino Superior Court, naming CoStar and Homes.com as defendants.
REcore claims that CoStar agreed to pay per listing view, with an annual cap of $500,000. The company says CoStar failed to meet those obligations, paying only $75,000 in 2024 and $37,500 in 2025, leaving at least $887,500 in unpaid fees.
REcore is also seeking attorneys’ fees as part of the filing.
In a statement, REcore said,
“For two years following the CoStar acquisition of Homes.com, company representatives verbally committed to paying for access to the MLS listing data, acknowledging the significant value provided by listing brokers and MLSs.”
The company filed suit after a year of unsuccessful negotiations.
Alleged Breach of Agreement
The licensing deal between REcore and Homes.com was designed to align with a 2008 Department of Justice consent decree involving the National Association of Realtors.
The agreement required companies that monetize MLS data without contributing listings to pay for that usage, ensuring brokers who supply the data receive fair compensation.
REcore’s complaint also claims that CoStar and Homes.com went beyond what the agreement allowed.
The companies allegedly used CRMLS listing data in printed advertising and to train AI models that optimized Homes.com’s search features, both prohibited uses under the licensing terms.
Promises Made, Promises Broken
REcore says the problems started when CoStar acquired Homes.com.
During early discussions, company representatives allegedly assured REcore that Homes.com would not become a participating broker or use an IDX data feed to populate its website.
That changed when Homes.com later applied for an IDX feed, claiming broker participation status.
In a statement included in both court filings and media coverage, REcore wrote,
“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.”
Data Feed Termination and Payment Delays
In response to the alleged breach, REcore announced it will cut off Homes.com and HomesPro data feeds containing CRMLS listings beginning November 1, 2025.
Brokers who want their listings to remain on Homes.com can set up a Participant’s Data Return feed at no cost and without restrictions on monetization.
REcore also said it will delay the first round of payments to CRMLS listing brokers until 2026, citing Homes.com’s unpaid fees.
The company (REcore) argues that every dollar spent defending MLS data rights is ultimately “a dollar taken from listing brokers who deserve to be compensated for their contributions.”
What’s Next
The case comes amid a tense backdrop for CoStar, which is already in a copyright lawsuit against Zillow and under scrutiny for its growing influence in residential real estate.
Whether this case reshapes how MLS data is licensed and monetized remains to be seen.
Read the full REcore court filing below. And stay tuned for updates as we learn more.
