Homestore to Pay $7.5 Million to Settle Contract Dispute with AOL

Online real estate firm Homestore Inc. said it has settled a contract dispute with America Online, the Internet division of AOL Time Warner Inc., and had signed a new 18-month marketing pact. Homestore, which along with America Online has been the subject of federal probes into its accounting practices, said it will pay AOL $7.5 million cash for terminating a prior marketing pact as part of a settlement of a contract dispute that began in October 2001.