Real Brokerage added as defendant in RESPA suit against Zillow

"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."

"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,"

"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."

Zillow and multiple real estate teams are accused of violating RESPA, the Washington Consumer Protection Act, RICO, and laws on unjust enrichment and fiduciary duty. The core allegation is that Zillow's Flex and Premier Agent programs steer consumers toward agents affiliated with Zillow and Zillow Home Loans, producing inflated home purchase prices. Twelve witnesses, including ten agents and two loan officers, describe Zillow personnel visiting offices to instruct Flex agents to meet Zillow Home Loans quotas and to avoid putting instructions in writing. Witnesses also allege Zillow loan officers frequently misrepresent or omit borrowers' true closing costs, causing buyers to pay excessive costs or lose properties. Industry commentator Jared James reports agents said Zillow leaders threaten downgrades if leads do not close with Zillow Home Loans, and copies and recordings of communications were reportedly shared.

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