Zillow Lawsuit Alert: Class Action Alleges Illegal Steering to Zillow Home Loans
By Rachel Dapeer · Published November 11, 2025 · Updated November 17, 2025
Quick Take
- Class action filed in Seattle alleges Zillow incentivized agents to refer buyers exclusively to Zillow Home Loans.
- Plaintiffs cite possible violations of the federal Real Estate Settlement Procedures Act (RESPA) and state consumer protection statutes.
- Case seeks nationwide class certification on behalf of home-buyers who received such referrals.
Check out the Tiktok Breakdown of this Article with @ThatAttorneyRachel
Key Allegations
- Real-estate agents who directed clients to Zillow Home Loans allegedly received preferential treatment on Zillow’s platform.
- Agents who declined to participate purportedly faced reduced visibility or other disincentives.
- Plaintiffs characterize the arrangement as an unlawful kickback scheme barred by RESPA Section 8(a).
Legal Framework
RESPA generally bans giving or receiving anything of value for the referral of settlement-service business. Violations can trigger:
- Treble damages for affected consumers, plus costs and attorney fees.
- Regulatory enforcement by the Consumer Financial Protection Bureau (CFPB).
Parties & Venue
- Plaintiffs: Unnamed home-buyers seeking to represent a nationwide class.
- Defendant: Zillow Group, Inc., including its mortgage subsidiary, Zillow Home Loans.
- Jurisdiction: Filed in a Seattle trial court; docket number and judge assignment remain undisclosed in public filings.
Procedural Timeline
- Filing: Complaint submitted in late May 2024.
- Next expected step: Court will assess adequacy of the class definition and standing.
- Defendant response: Zillow may move to dismiss for failure to state a claim or answer on the merits.
- Potential discovery focus: Internal communications about agent incentives, data on referral rates, and financial arrangements with participating agents.
What’s Next
If the court grants class certification, the case will proceed to fact discovery, expert testimony on damages, and possible summary-judgment motions. Settlement negotiations could occur at any stage but would require judicial approval to bind the class. Stay tuned for an update!
Official Source
See Attorney Rachel’s overview on TikTok: Video link ↗