Key facts
- The Real Brokerage and The Frano Team were dismissed from the Taylor RESPA lawsuit.
- The dismissal was voluntary and without prejudice.
- A prior court order compelled arbitration and stayed the suit.
- The original lawsuit alleges Zillow's Flex and Premier Agent programs inflate home prices.
- A consolidated suit claims Zillow pressured agents to use Zillow Home Loans for pre-approvals.
- eXp Realty was added as a defendant for allegedly steering clients to Zillow Home Loans.
The Real Brokerage and The Frano Team have been voluntarily dismissed from the Taylor Real Estate Settlement Procedures Act (RESPA) lawsuit. The plaintiffs notified the court of their decision on Wednesday, with the dismissal occurring without prejudice, meaning the claims could potentially be refiled at a later date.
This development follows a March motion filed by Real and The Frano Team to compel arbitration, which was approved by Federal Court Judge James Robert. The judge had also stayed the suit until arbitration is completed, though it is unclear if this stay will remain in effect.
The original Taylor suit, filed in mid-September 2025, alleges that Zillow deceives consumers into using its affiliated agents through its Flex and Premier Agent programs, leading to higher home purchase prices. In December 2025, this suit was consolidated with the Armstrong suit, which claimed Zillow pressured agents to direct buyers to Zillow Home Loans for mortgage pre-approvals in exchange for better leads.
Real and The Frano Team, along with Works Real Estate, were added to the consolidated suit in early January. Works Real Estate was subsequently dismissed in February. In April, eXp Realty was added as a defendant, accused of supporting Zillow's alleged "fraudulent business enterprise" by steering clients to Zillow Home Loans. The court is still deliberating on Zillow's motion to dismiss the overall lawsuit.