eXp drawn into Zillow RESPA case
“We will vigorously defend against these claims which we believe have absolutely no merit,” eXp said. The judge, meanwhile, took issue with the amended filing.
Another major real estate brokerage has been added as a defendant in a class-action lawsuit accusing Zillow of engaging in a scheme to inflate commissions and steer homebuyers toward Zillow Home Loans.
eXp Realty has been accused of supporting the "Zillow Fraudulent Business Enterprise" by steering clients to Zillow's home loans department, according to an amended complaint filed this week in the case known as Taylor.
The new filing also added another plaintiff, bringing the total to 12 individuals. In addition to Zillow and eXp, The Real Brokerage and two real estate teams — Nevada-based GK Properties and Florida-based Frano Team — are named as defendants.
On April 17, U.S. District Court Judge James Robart ordered the plaintiffs to show cause for the changes by April 24 — or risk going through the refiling process again.
Robart noted that the plaintiffs deviated from standard procedure by not filing a motion regarding the changes or a notice of consent. They also failed to show the changes they made in the amended complaint, according to Robart's order.
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).
The class-action lawsuit was initially filed in September 2025, with RICO claims added two months later. The case was merged with the Armstrong case in December. Filed in November, Armstrong v. Zillow had also raised concerns about Zillow's Premier Agent structure and lead generation, accusing the company of rewarding agents who sent more clients to Zillow's mortgage division with extra or higher-quality leads.
What eXp is alleged to have done: Filed April 15 in the U.S. District Court for the Western District of Washington, the amended complaint accused eXp of posting "at least ten" videos on its official YouTube channel that promoted Zillow's "Flex" agent referral program. The filing also said an eXp agent had acted as the buyers agent for Alucard Taylor, one of the plaintiffs.
What eXp had to say: "We are aware of the recent filing and want to be clear: eXp has been improperly named in this matter," a spokesperson for eXp told Real Estate News. "Should we be drawn into this litigation, we will vigorously defend against these claims which we believe have absolutely no merit."
What Zillow has said: Zillow has pushed back against the allegations brought in the Taylor case. The company filed a motion to dismiss in February, claiming the case was "thin on substance."
In that motion to dismiss, Zillow said 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."
Zillow defended its motion to dismiss in an April 17 filing, saying the plaintiffs' latest argument against dismissal "confirms their case is legally and factually baseless."
Zillow argued that the plaintiffs have not presented evidence that the company's free pre-approval letter hurt consumers' chances of getting a loan elsewhere and said the plaintiffs didn't pay inflated fees, since sellers set and pay commissions.
This story has been updated to include court documents filed on April 17 by the judge overseeing the case and by Zillow.