Zillow Lawsuit 2025, Multiple Legal Battles, RESPA Violations, and What Homeowners Need to Know About Their Legal Rights
Zillow faces seven separate lawsuits in 2025 involving antitrust violations, illegal mortgage kickbacks, copyright infringement, and job discrimination. The listing portal’s legal troubles began in mid-June 2025 when Compass filed its antitrust lawsuit, with additional cases emerging through November including a Real Estate Settlement Procedures Act (RESPA) suit over Zillow Home Loans kickbacks. Homeowners who used Zillow-affiliated agents for home purchases may have legal claims if they were steered to Zillow’s mortgage services without proper disclosure.
What Is the Zillow Lawsuit About?
The most significant case involves allegations that Zillow violated federal law by using illegal kickbacks to pressure real estate agents into steering homebuyers toward Zillow Home Loans (ZHL). Lead plaintiff Araba Armstrong, a first-time homebuyer from Anchorage, Alaska, claims she purchased her home in 2024 through a Zillow-affiliated agent and believed she was obligated to use Zillow Home Loans for her mortgage.
The lawsuit targets Zillow’s Premier Agent program and its connection to Zillow Home Loans. Participating agents who pay or earn access to consumer leads through Premier Agent were allegedly assessed by Zillow using metrics related to its home loans program, requiring agents to meet specific ZHL pre-approval quotas as a condition of program participation.
The legal action seeks class certification for all U.S. consumers referred to ZHL by participating agents, with potential treble damages under RESPA.
Who Are the Plaintiffs and What Claims Have They Made?
An amended class action complaint filed November 19, 2025, in Seattle federal court names 10 plaintiffs across eight states. The filing adds Zillow Home Loans (ZHL) plus three real estate brokerages/teams as defendants: Oregon-based Works Industries LLC, Nevada-based GK Properties, and The Frano Team based in Florida.
The amended complaint includes testimony from 12 anonymous current and former Zillow-affiliated loan officers and agents that corroborate the claims. According to the filing, Zillow incentivizes agents to “burn and churn” through clients and cherry-pick borrowers to intentionally conceal loan office practices.
Key Allegations Include:
- RESPA violations: Illegal kickbacks in the form of lead access
- Washington Consumer Protection Act violations: Deceptive business practices
- Aiding and abetting fiduciary breaches: Pressuring agents to violate duties to clients
- RICO claims: Coordinated scheme to inflate commissions and steer buyers
The amended complaint argues that Zillow and participating brokerages constitute an “enterprise” that uses deceptive digital funnels, scripted sales tactics, and undisclosed fees to unlawfully keep commissions “high and inflexible”.
What Evidence Has Emerged Supporting the Claims?
Internal investor materials cited in the complaint show that Zillow views mortgage adoption as a key growth lever, with plans to increase the share of buyers connected to its “enhanced market partner” agents from 27% to 35% by the end of 2025, and eventually to 75%.
Multiple confidential witnesses reported that Zillow uses Follow Up Boss to monitor calls and messages, “eavesdrop” on client communications, and catch agents who recommend outside lenders. Zillow managers allegedly travel to offices to personally deliver instructions “they could not put in writing” about quotas.
According to the filing, borrowers funneled through Zillow’s system “paid higher interest rates and fees than comparable borrowers who financed their homes through independent lenders”.
Recent Legal Developments in the Compass Antitrust Case
Compass filed a lawsuit in June 2025 alleging that Zillow’s listing access standards policy violates federal antitrust laws. The policy, which took effect June 30, 2025, bans property listings from Zillow if they don’t appear on the platform within one business day of being publicly marketed.
On November 18-21, 2025, Compass and Zillow faced off in a four-day preliminary injunction hearing in New York City under U.S. District Court Judge Jeanette Vargas. The hearing addressed Compass’s motion seeking to block enforcement of Zillow’s listing access standards.
According to the Compass complaint, under Zillow’s standards, any listing that is “publicly marketed” must appear on Zillow within one business day. If it doesn’t, Zillow can pull the listing. If a seller wants it back on Zillow, they have to terminate their agent and brokerage entirely.
Federal Trade Commission Antitrust Action
On September 30, 2025, the FTC sued Zillow and Redfin, alleging they entered into an illegal agreement where Zillow paid Redfin to exit the internet listing services (ILS) advertising market for rental properties. In exchange for a $100 million payment and other compensation from Zillow, Redfin agreed to end its contracts with advertising customers, stop competing in the advertising market for multifamily properties for up to nine years, and serve merely as an exclusive syndicator of Zillow listings.
By 2024, Zillow, Redfin, and CoStar had captured more than 85 percent of national ILS revenue, with Zillow accounting for more than half of all U.S. rental listings.
What Legal Claims Can Be Pursued?
Affected homeowners may pursue several legal claims:
RESPA Violations
Section 8a of RESPA prohibits anything of value, like a referral fee or kickback, being transferred for business involving a federal mortgage loan. Any written, verbal, or established conduct of such a referral agreement is in violation.
Consumer Protection Claims
The lawsuit alleges violations of the Washington Consumer Protection Act, which prohibits unfair or deceptive acts or practices in trade or commerce.
Breach of Fiduciary Duty
The lawsuit claims that Zillow aided and abetted real estate agents in breaching their fiduciary duty to consumers. Buyers were steered to ZHL for their pre-approval without being informed that a large lead source for their agent depended on this.
What Are the Potential Legal Remedies and Damages?
The statute of limitations for a RESPA violation is one year after the offense for kickback claims. However, for violations under Section 6 concerning servicer complaints, borrowers may bring a private action within three years, and a judge may grant damages.
Available Damages Include:
- Treble damages under RESPA: Up to three times actual damages
- Statutory damages: Up to $2,000 per RESPA violation
- Attorney’s fees: Courts may award legal costs to successful plaintiffs
- Injunctive relief: Court orders preventing future violations
Plaintiffs are seeking class certification for all U.S. consumers referred to ZHL by participating agents, along with treble damages under RESPA and the Washington statute. The complaint also seeks injunctive relief to halt the alleged practices and restitution for unlawfully obtained gains.
What Is the Statute of Limitations for Filing Claims?
The statute of limitations for RESPA kickback violations (Section 8) is one year from the date of the violation. However, for actions brought under RESPA Section 2605 concerning loan servicing issues, the statute of limitations is three years.
Courts have applied equitable tolling in RESPA cases where defendants allegedly concealed improper activity. Unless a defendant can show that plaintiffs knew about the relationships or payments, the statute of limitations may be tolled where payments were affirmatively concealed.
This means affected homeowners should act quickly. If you obtained a mortgage through Zillow Home Loans after being connected with a Zillow-affiliated agent, you may have limited time to pursue claims.
How Can Affected Individuals Pursue Legal Action?
Homeowners who believe they were affected by Zillow’s practices should take these steps:
- Gather documentation: Collect all records related to your home purchase, including communications with your real estate agent, mortgage documents from Zillow Home Loans, and any agreements you signed with Zillow-affiliated agents.
- Determine your timeline: Calculate when you obtained your mortgage to ensure you’re within the statute of limitations.
- Consult with a qualified attorney: Contact a lawyer experienced in RESPA violations and consumer protection law. Many attorneys handling these cases work on contingency, meaning they only get paid if you recover damages.
- Consider class action participation: Monitor developments in the existing class action lawsuits. If you fit the class definition, you may automatically be included or may need to opt in.
- File complaints with regulators: Report violations to the Consumer Financial Protection Bureau (CFPB), which enforces RESPA regulations.
What Makes a Valid Claim in This Context?
To have a valid RESPA claim against Zillow, you typically need to show:
- You obtained a mortgage through Zillow Home Loans
- You were connected with your lender through a Zillow-affiliated agent participating in Premier Agent or Flex programs
- Your agent received benefits (leads, increased commission opportunities) in exchange for referring you to ZHL
- You were not properly informed of this relationship
- You suffered damages (higher interest rates, fees, or costs)
According to the complaint, buyers were steered to ZHL for their pre-approval without being informed that a large lead source for their agent depended on this. “Zillow’s system harms consumers, who are robbed of the disinterested advice of their fiduciary real estate agent, and instead are unknowingly steered towards ZHL’s limited and often uncompetitive mortgage products”.
Current Legal Status of the Lawsuits
Zillow is currently defending seven lawsuits in 2025 covering antitrust, copyright infringement, discrimination, and RESPA violations. Here’s the status of major cases:
RESPA Kickback Lawsuits: Active litigation with amended complaints filed November 2025. Discovery ongoing with testimony from current and former employees.
Compass Antitrust Case: Preliminary injunction hearing held November 18-21, 2025. Judge Jeanette Vargas presiding. Decision pending on whether to block enforcement of listing access standards.
FTC Antitrust Case: Filed September 30, 2025. Seeks to stop Zillow-Redfin agreement and contemplates potential divestiture of assets.
CoStar Copyright Case: Filed July 2025. Zillow seeking to transfer case from Southern District of New York to Seattle.
What Recent Developments Change Legal Options?
Zillow’s mortgage business has grown rapidly over the past few years, posting a 57% annual increase in loan origination volume, which rose to $2.3 billion in Q3 2025. This rapid growth coincides with the period when the alleged kickback schemes were in operation.
This is not the first time Zillow has dealt with allegations of a RESPA violation related to its mortgage program. In 2023, prior to the launch of ZHL, Zillow settled a class action lawsuit related to its mortgage co-marketing program.
The fact that Zillow previously settled similar claims strengthens the position of current plaintiffs and may influence settlement negotiations.
Related Legal Resources
For homeowners concerned about real estate practices and consumer protection, explore these related topics:
- Class Action Lawsuits Against Real Estate Companies
- Consumer Protection in Financial Services
- Understanding RESPA and Your Mortgage Rights
Frequently Asked Questions
What is the Zillow lawsuit about?
The primary lawsuit involves allegations that Zillow violated the Real Estate Settlement Procedures Act (RESPA) and Washington Consumer Protection Act by using illegal kickbacks to pressure real estate agents into steering homebuyers toward Zillow Home Loans. The case also includes claims that Zillow aided and abetted breaches of fiduciary duty by real estate agents.
Who are the plaintiffs in the Zillow lawsuit?
The amended complaint filed November 19, 2025, names 10 plaintiffs across eight states, with lead plaintiff Araba Armstrong, a first-time homebuyer from Anchorage, Alaska. The lawsuit also includes testimony from 12 anonymous current and former Zillow-affiliated loan officers and agents.
What damages can I recover if I was affected?
RESPA allows for treble damages (up to three times actual damages), statutory damages up to $2,000 per violation, and attorney’s fees. State consumer protection laws may provide additional remedies.
What is the statute of limitations for filing a claim?
For RESPA kickback violations under Section 8, the statute of limitations is one year from the date of the offense. For loan servicing violations under Section 2605, it’s three years. However, equitable tolling may extend these periods if the violations were concealed.
How do I know if I have a valid claim?
You may have a valid claim if you obtained a mortgage through Zillow Home Loans after being connected with your lender through a Zillow-affiliated agent, and you were not informed that your agent received benefits for referring you to ZHL. Evidence that you paid higher rates than comparable borrowers strengthens your claim.
What should I do if I believe I was affected?
Gather all documentation related to your home purchase and mortgage, determine if you’re within the statute of limitations, and consult with a qualified attorney experienced in RESPA violations and consumer protection law. You can also file a complaint with the Consumer Financial Protection Bureau.
Has Zillow settled similar cases before?
Yes, in 2023, prior to the launch of Zillow Home Loans, Zillow settled a class action lawsuit related to its mortgage co-marketing program. The program was also allegedly under investigation by the Consumer Financial Protection Bureau (CFPB), but the investigation was dropped without the CFPB issuing an enforcement action.
Legal Disclaimer: This information is for educational purposes only and does not constitute legal advice. If you believe you have been affected by Zillow’s practices, consult with a qualified attorney to discuss your specific situation and legal options. The statute of limitations for RESPA claims is typically one to three years, so prompt action is essential to preserve your rights.
Sources: Federal Trade Commission complaints, court filings from U.S. District Courts in Seattle and New York, HousingWire, Inman, Real Estate News, and Consumer Financial Protection Bureau regulatory documents.
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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