Zillow moves to dismiss RESPA case: ‘Thin on substance’
The Taylor case, filed in September 2025, claims Zillow Flex agents are pushed to steer clients to Zillow Home Loans — allegations the home search giant denies.
Zillow has filed a motion to dismiss a class-action lawsuit that the home search portal says is "heavy on filler but thin on substance."
The case known as Taylor was filed last September. It alleges that Zillow's referral program inflates commissions and that the company forces agents to steer homebuyers to its home loans department.
Zillow filed its motion to dismiss on Feb. 20 in the U.S. District Court for the Western District of Washington in Seattle. The class-action lawsuit was originally focused on the Zillow Flex referral program but was amended in November to include charges of a scheme to compel agents to steer buyers to Zillow Home Loans — an alleged violation of the Real Estate Settlement Procedures Act (RESPA).
In December, the Taylor case was merged with a similar case known as Armstrong.
Zillow's argument for dismissal: In its 39-page filing, Zillow insisted that it "has put consumers in control of their entire home-buying journey" by providing more choice and information "regardless of which agent or lender they decide to use."
The filing also said consumers remain in control of which agent they work with and which lender they use for financing since Zillow's tools are free and optional.
"Plaintiffs do not plausibly allege any wrongdoing by Zillow, how Plaintiffs lost money, and why it is Zillow's fault," according to the filing, which later added that the "Plaintiffs' bloated, 100-page pleading is heavy on filler but thin on substance."
What the case is about: The case was filed last fall by Hagens Berman, a law firm that has been involved in a variety of real estate litigation — including the Moehrl buyer agent commission case. Their client, Alucard Taylor, has claimed that "he did not believe he had any other option than to use" a Zillow Flex agent to make a home purchase, the initial filing said.
"We believe Zillow is well aware of the potential for ill-gotten gains in this space and has sought to play fast and loose when real people's basic need of housing is on the table," said Steve Berman, Hagens Berman's founder and managing partner, in a statement last September.
The plaintiffs will have an opportunity to respond to Zillow's motion before a decision is made by U.S. District Judge James Robart.