Zillow RESPA lawsuit paused after judge orders arbitration

Zillow has notched what it is calling a legal win in the consolidated Real Estate Settlement Procedures Act (RESPA) lawsuit filed against it last September. 

On Tuesday, Seattle-based Federal Court Judge James Robert approved a motion filed in March by defendants The Real Brokerage and the Real-brokered The Frano Team to compel arbitration between the two parties and the plaintiffs in the Taylor lawsuit. In addition, the judge stayed the suit until the arbitration is completed. 

Zillow had also previously asked that the suit be stayed. 

In a statement published on its Front Porch blog, Zillow called the ruling “yet another setback for the plaintiffs,” adding that the ruling “just offers further proof that plaintiffs have simply been throwing new theories and parties at the wall without any substance behind them.” 

The court is still considering Zillow’s motion to dismiss the lawsuit. 

Originally filed in mid-September 2025, 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 2025, 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. The complaint also added Real and The Frano Team as defendants. 

In a second amended complaint filed in April, the plaintiffs added eXp Realty as a defendant, accusing it of supporting Zillow’s “fraudulent business enterprise” by allegedly steering clients to Zillow Home Loans for their financing needs.