Arbitration United States

Zillow RESPA Lawsuit Stayed Pending Arbitration with The Real Brokerage and The Frano Team

By ADR Journal Editorial Desk Published 1 source Arbitration Award Enforcement Commercial Disputes Real Estate Sector United States United States

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TL;DR

  • Seattle federal judge ordered arbitration between plaintiffs, The Real Brokerage, and The Frano Team.
  • The consolidated RESPA lawsuit against Zillow is stayed as to those defendants during arbitration.
  • Zillow's own motion to dismiss the lawsuit remains under consideration.
  • Allegations involve consumer steering and inflated home prices via Zillow's agent programs.

Overview

A federal judge in Seattle granted a motion to compel arbitration between plaintiffs and the defendants The Real Brokerage and The Frano Team in a consolidated Real Estate Settlement Procedures Act (RESPA) lawsuit that also targets Zillow. The case is stayed as to those parties, and the court has yet to rule on Zillow's motion to dismiss.

What Happened

On July 28, 2026, Judge James Robert of the U.S. District Court in Seattle approved The Real Brokerage and The Frano Team's motion to compel arbitration with the plaintiffs in the consolidated RESPA claim known as the Taylor lawsuit.

This order stays the Court proceedings against these two defendants while the arbitration takes place.

Zillow, also a defendant, was not included in this arbitration order, but had previously asked for a stay and has filed a motion to dismiss, which the court has not yet decided.

The original September 2025 lawsuit and related Armstrong suit were consolidated and allege that Zillow, through its agent programs, improperly steered consumers in violation of federal law.

Context

The lawsuit alleges that Zillow's Flex and Premier Agent lead programs trick consumers into using affiliated agents, resulting in inflated home purchase prices.

Plaintiffs claim that agents participating in certain Zillow programs are pressured to refer buyers to Zillow Home Loans, possibly receiving more client leads in exchange.

The suit, amended multiple times, added The Real Brokerage, The Frano Team, and eXp Realty as defendants over time, with new allegations targeting their alleged roles in supporting the conduct at issue.

Why It Matters

  • The order directs a key portion of the dispute to arbitration, pausing litigation for some parties and narrowing the immediate scope of the consolidated federal lawsuit.
  • The outcome of the ongoing arbitration and the court's pending decision on Zillow's motion to dismiss could affect broader litigation strategies involving real estate agent practices and consumer referrals.

Sources

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