eXp Realty added to Zillow RESPA lawsuit in Seattle

eXp Realty is the latest defendant to be brought into the Taylor Real Estate Settlement Procedures Act (RESPA) lawsuit filed against Zillow last fall. 

The Glenn Sanford-founded firm was added to the lawsuit through a second amended complaint filed on Wednesday. 

Originally filed in mid-September in U.S. District Court in Seattle, the lawsuit claims that the portal tricks consumers into using agents affiliated with Zillow through its Flex and Premier Agent programs, resulting in inflated home purchase prices.

In December, the lawsuit was consolidated with a second suit known as the Armstrong suit, which was first filed in early November, claiming that Zillow pressures agents in its Premier Agent and Flex lead programs to steer buyers to Zillow Home Loans for their purchase mortgage pre-approval. Allegedly, agents who send more clients to Zillow’s mortgage arm for their pre-approvals received extra or higher-quality leads in exchange.

In a first amended complaint filed in the consolidated lawsuit in early January, the plaintiffs again claimed that Zillow tricks consumers into using agents affiliated with Zillow through its Flex and Premier Agent programs, resulting in inflated home purchase prices. 

In Wednesday’s second amended complaint, eXp is accused of supporting Zillow’s “fraudulent business enterprise” by allegedly steering clients to Zillow Home Loans for their financing needs. 

According to the complaint, eXp posted “at least 10” videos on its official YouTube channel promoting Zillow’s agent referral and lead generation program. Additionally, lead plaintiff Alucard Taylor claims that an eXp agent represented him in the purchase of his home. 

In an emailed statement, an eXp spokesperson told HousingWire that the firm is aware of the filing and that “eXp has been improperly named in this matter.” 

“Should we be drawn into this litigation, we will vigorously defend against these claims which we believe have absolutely no merit,” the spokesperson added.

In addition to eXp and Zillow, the second amended complaint again names The Real Brokerage and two real estate teams, the Nevada-based GK Properties and the Florida-based Frano Team, as defendants and it adds one new named plaintiff, bringing the total number of named plaintiffs to 12. 

Zillow filed a motion to dismiss the lawsuit in February. The listing portal giant has maintained that the claims in the lawsuit “are false and fundamentally mischaracterize” how the firm’s business operates.