"A Seattle law firm specializing in large class-action litigation claims Zillow illegally tricks homebuyers into working with Zillow agents forced to split their commission with the real estate listings giant. In a filing with the U.S. District Court for the Western District of Washington, a man who bought a home in Portland with a Zillow agent claims the Seattle-based company, which is a licensed brokerage in several states, aimed to defraud him and other homebuyers."
"Buyers believe clicking "Contact agent" or "Request a tour" on a Zillow listing routes them to the home's listing agent, the lawsuit claims. It actually sends their contact information to Zillow-affiliated buyer's agents. "Zillow buries the listing agent in tiny print, barely visible to the average reader," attorneys Steve Berman and Jerrod Patterson, of the firm Hagens Berman, said in court papers."
"Zillow agents on recorded introductory calls to buyers did not readily disclose that they are not the listing agent, the attorneys continued. If the buyer's agent is part of Zillow's "Flex" program, Zillow receives up to 40% of the agent's commission - a transaction undisclosed to homebuyers. Although Zillow's webpage suggests the fees are paid out of escrow, they are actually paid by the buyer's agent directly to Zillow, keeping buyers and sellers in the dark, Berman and Patterson said."
Homebuyers who click "Contact agent" or "Request a tour" on Zillow listings are routed to Zillow-affiliated buyer's agents rather than the listing agent. The routing is accompanied by small print identifying the listing agent. Zillow agents on recorded introductory calls did not readily disclose that they are not the listing agent. If an agent participates in Zillow's Flex program, Zillow receives up to 40% of the agent's commission, a fee paid by the buyer's agent rather than out of escrow. High Zillow fees reduce agents' willingness to lower commissions or negotiate price on behalf of buyers. Zillow implemented a policy requiring agents to upload listings to Zillow within 24 hours, with penalties for noncompliance.
Read at Boston Condos For Sale Ford Realty
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