Real Brokerage pulled into Zillow class action case
Real Broker, LLC, a subsidiary of Real Brokerage, was added as a defendant in the Taylor case, which has accused Zillow of RESPA violations.
Real Brokerage has been added as a defendant in a lawsuit filed against Zillow last fall.
The lawsuit known as the Taylor case accused the portal of racketeering and of running a coordinated scheme to inflate commission fees and steer buyers toward Zillow Home Loans. An amended complaint filed Dec. 29 in the U.S. District Court Western District of Washington added Real Broker, LLC, a subsidiary of Real Brokerage, to its list of defendants.
Real told Real Estate News via email that it does not comment on ongoing litigation.
A growing list of defendants, accusers: The Taylor case was originally filed last September. Three brokerages/teams — Oregon-based Works Industries LLC, Nevada-based GK Properties and Florida-based The Frano Team — were added in November.
The addition of Real Brokerage appears to be the biggest change in the Dec. 29 filing, which focused on a variety of complaints made by the 11 plaintiffs.
The 100-page amended complaint features accounts from several confidential sources, who the plaintiffs say back up their complaints. Commentary from real estate coach Jared James, who spoke at length about Zillow on a September podcast, is also included.
What the case is about: Zillow has been accused of running a "fraudulent enterprise" that tricks buyers into working with Zillow-affiliated agents. Those agents are allegedly pushed to send business to Zillow Home Loans in violation of the Real Estate Settlement Procedures Act (RESPA).
In December, the Taylor case was merged with Armstrong v. Zillow. The Armstrong case, which was initially filed in early November, also raised concerns about Zillow's Premier Agent structure and lead generation. The Armstrong case accused Zillow of rewarding agents who sent more clients to Zillow's mortgage division with extra or higher-quality leads.
The Dec. 29 amended complaint is the first that has been filed since the two lawsuits were consolidated.
Zillow has denied the claims and said that its programs comply with RESPA.