The Zillow Flex Lawsuit: Who Is Zillow Really Working For?

Zillow was sued in 2024 over how it connects buyers with agents and mortgages. Two years later, the case has not gone away. It has grown into a sweeping class action that raises serious questions about steering, disclosure, and who Zillow’s “help” is really designed to serve.

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What Is Zillow Flex?

Zillow Flex is a program where real estate agents get buyer leads from Zillow. These are people who click buttons on listings asking for help.

Instead of being connected to the listing agent, buyers are often routed to a Zillow Flex agent. In exchange, the agent agrees to give Zillow a big cut of their commission after closing. Sometimes that cut can be as high as 40 percent.

Most buyers do not know this is happening.

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What Is Zillow Being Accused Of?

The lawsuit claims Zillow did more than just sell leads. According to the allegations, Zillow used its power to quietly influence two big decisions buyers make.
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1. Which agent you work with
   Buyers often think they are contacting the agent who listed the home. In reality, Zillow may send them to a Flex agent who paid for the lead. The lawsuit says this was not clearly explained to consumers.
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2. Which lender you use
   This is the bigger issue. The lawsuit claims Zillow pressured Flex agents to push buyers toward Zillow Home Loans. Agents who did not send enough buyers to Zillow’s mortgage company allegedly risked losing their leads or being removed from the program.
   
   In simple terms, agents may have felt forced to recommend Zillow’s lender even if another lender was a better fit for the buyer.

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What Are the Legal Claims?

The case includes some serious accusations.
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1. RESPA violations: RESPA is a federal law that bans kickbacks for referrals in real estate. The lawsuit claims Zillow’s lead and mortgage system crossed that line by rewarding agents who sent business to Zillow Home Loans.
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2. RICO claims: The case was expanded to include RICO claims, which are typically used in cases involving organized schemes. Plaintiffs argue Zillow and its partners worked together using scripts, tracking systems, and internal pressure to steer buyers in specific directions for profit.

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What Does Zillow Say?

Zillow denies any wrongdoing.

The company says buyers always have a choice and that its programs follow the law. Zillow also says agents and lenders are not required to work exclusively with its services. The court will ultimately decide whose version holds up.

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Why This Matters

This case is bigger than Zillow. It raises questions about how real estate platforms make money and how transparent they are with consumers. Many tech driven real estate companies now try to control search, agents, and financing all in one place.

That can be convenient, but it can also blur the lines between advice and advertising.

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Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.