Real Brokerage Added As Defendant In Respa Suit Against Zillow

The plaintiffs in the consolidated Taylor-Armstrong lawsuit against Zillow have added some new defendants to the case. In a consolidated amended complaint filed last Monday, the 11 homebuyer plaintiffs added four new defendants. 

The added defendants include Oregon-based Works Industries LLC, which owns real estate brokerage Works Real Estate, which does business in both Oregon and Washington; Nevada-based GK Properties, which oversees the Signature Real Estate Group-brokered George Kypreos Team; the Tamir Poleg-helmed Real Brokerage; and the Florida-based Frano Team, which is brokered by the Real. 

All of the teams named as defendants advertise on either their social media channels or website that they are part of the Zillow Flex program.

Similarly to the two original complaints, the consolidated amended complaint claims that Zillow, and now the real estate defendants, violated a variety of statutes, including the Real Estate Settlement Procedures Act (RESPA), the Washington Consumer Protection Act, the Racketeer Influenced and Corrupt Organizations (RICO) Act and the law of unjust enrichment and fiduciary duty.

Does Zillow “trick” consumers into using Zillow-affiliated agents?

Central to the combined lawsuit is the claim that Zillow tricks consumers into using agents affiliated with Zillow through its Flex and Premier Agent programs, resulting in inflated home purchase prices. 

Additionally, like the amended complaint in the Taylor suit, the consolidated complaint contains testimony from 12 additional witnesses, including 10 real estate agents and two loan officers, who claim that Zillow personnel fly to real estate offices to instruct Zillow Flex agents in person on the need to meet Zillow Home Loans (ZHL) quotas to avoid putting things in writing, and that Zillow’s loan officers frequently misrepresent or omit important details about borrowers’ true closing costs, leading buyers to pay excessive costs or lose the house. 

In addition to this testimony, the consolidated complaint also quotes from agent and industry commentator Jared James, who claim that agents and team leads have confided in him that behind the scenes, Zillow Flex leaders are telling Zillow Flex agents and teams that if a certain percentage of leads don’t close their transaction with ZHL, the agent will be “downgraded.” 

“Look, I’m used to people in our industry being angry toward Zillow, but the messages people were sending me were, uh, pretty consistent, all pretty much similar,” the complaint quotes James as saying during a Sept. 2025 episode of his podcast. “And I mean, evidence, like they were sending me copies, recordings of phone calls, um, with reps and what they were saying that completely break, you know, what they’re allowed to be doing[.]” 

James added that agents have told him that “ZHL loan officers are inferior and offer an inferior product, but the agents are forced to refer customers to ZHL anyway in violation of their fiduciary duties.” 

Zillow clarifies practices

A Zillow spokesperson has since clarified that there are a number of factors Zillow considers and several requirements an agent must meet to be part of the Zillow Flex program. Zillow said that this list of factors is examined when considering to reduce the number of leads an agent receives, remove them from the program or increase the number of leads they receive.

Zillow has maintained that its practices do not violate RESPA or any other laws.

“The claims in this consolidated lawsuit are false and fundamentally mischaracterize how our business operates,” Zillow spokesperson wrote in an email. “Zillow is built around empowering consumers with information and choice, and our programs reflect that commitment. Through trusted local agents, clear accountability and tools, we work with partners to help buyers understand what they can afford and deliver strong outcomes for consumers while ensuring they remain in control at every step. We stand by our business model and we will vigorously defend against these allegations.” 

A Real Brokerage spokesperson told HousingWire in an email that the company does not comment on pending litigation.