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mended on Nov. 19 in Seattle, the Taylor class action now lists 10 plaintiffs from eight states and adds Zillow Home Loans plus three brokerages—Works Industries LLC (Oregon), GK Properties (Nevada) and The Frano Team (Florida)—as defendants. Attorneys from Hagens Berman and Cohen Milstein claim Zillow orchestrated a “fraudulent enterprise” that lures buyers into working with Zillow‑affiliated agents, conceals substantial referral fees, and coerces agents to route business to Zillow Home Loans (ZHL). The complaint alleges the company monetizes every step of the home‑buying process, even if it violates the law.
The filing introduces two new RICO claims, asserting that Zillow and the named brokerages form an enterprise that employs deceptive digital funnels, scripted sales tactics and undisclosed fees to keep commissions artificially high. It contends that when prospective buyers click “Contact Agent” or “Request a Tour,” they are actually connected to a Zillow Flex agent who then pushes a touring agreement that hides Zillow’s 40 % referral fee.
Twelve confidential witnesses are now cited, expanding the mortgage‑steering allegations. The complaint says Zillow uses Follow Up Boss to monitor calls and messages, “eavesdrops” on client communications, and catches agents who recommend outside lenders. Managers reportedly visit offices to hand‑deliver instructions about quotas that cannot be put in writing. Flex agents who fail to meet referral quotas for ZHL risk losing leads or being removed from the program. ZHL allegedly cherry‑picks high‑quality buyers, offers higher interest rates than competitors, and provides inaccurate closing disclosures. Several agents claim they were dropped for recommending lenders that better served their clients.
The case follows a separate class action accusing Zillow of kickbacks that violate the Real Estate Settlement Procedures Act and Washington’s Consumer Protection Act. That suit alleges Zillow pressured agents in its Premier Agent and Flex programs to steer buyers to ZHL for pre‑approval, rewarding compliant agents with extra leads while threatening those who did not with program exclusion. Buyers were allegedly unaware that their agents’ income depended on these referrals.
Finally, the complaint accuses Zillow of RESPA violations, asserting the company illegally gives and receives “things of value” related to referrals and receives payments not in exchange for completing the property transaction.
