RESPA Risk Alert: How Zillow Style Lead Programs May Expose Real Estate Agents

Q: Are Zillow Flex agents required to send buyers to Zillow Home Loans?

According to recent lawsuit filings and industry coverage, some plaintiffs allege that certain Zillow lead programs created pressure or expectations that participating agents would direct buyers to Zillow Home Loans for preapproval or mortgage services. Zillow has disputed aspects of these claims, and the case has not yet been resolved in court. Regardless of the outcome, the safest posture for agents is to avoid any structure where access to leads or better leads depends on steering buyers to a specific lender.

By John Mijac · Managing Broker
Published November 16, 2025

In a tight and highly competitive real estate market, leads feel like oxygen. Many agents build their business around powerful online platforms and lead funnels, including high visibility programs like Zillow Premier Agent and Flex. At first glance, these programs can look like simple advertising or pay per lead models.

A recent lawsuit that challenges aspects of Zillow lead programs is a reminder that the law treats some of these arrangements very differently. Under the federal Real Estate Settlement Procedures Act, or RESPA, it is not enough for a platform to say that the agent is not responsible. Regulators look at what actually happens in practice. If an agent receives a thing of value in exchange for steering clients to mortgage or settlement services, the agent may carry real legal exposure.

If you are an Arizona agent who is already questioning whether your current brokerage, portal relationship, or lead program is working for you, you can review our Arizona Agent Move Kit Hub. That hub collects the checklists, scripts, and compliance tools you need to switch brokerages safely while staying inside RESPA and Arizona law.

RESPA focuses on behavior and benefits, not marketing language

RESPA Section 8 prohibits giving or accepting any fee, kickback, or thing of value in exchange for the referral of settlement service business. The law does not care very much about how a program is branded. Instead, regulators ask a simple question. Is something valuable being given or withheld based on whether referrals are made.

In that light, it is important to understand that:

Leads are a thing of value.
Better leads are a thing of value.
Continued access to a lead program is a thing of value.
Preferred territories or higher intent buyer inquiries are a thing of value.

When a program connects these things of value to whether an agent sends clients to a particular mortgage lender or settlement service, RESPA questions are not far behind.

Why agents are still on the hook even when a platform designs the program

There is a common misconception in the industry. Many agents believe that if a company or portal designs the incentive structure, then the company alone is responsible. That is not how regulators usually see it.

Agents are licensed fiduciaries. Every recommendation they make about a lender, title company, escrow provider, or other settlement service is a professional act. When an agent:

Encourages a buyer to use a specific lender.
Channels business toward a preferred provider.
Fails to disclose economic incentives or program conditions.

that agent is the medium for the recommendation and the recipient of the thing of value in the form of leads, visibility, or program access. Even if a lawsuit focuses on the portal or lead platform, participating agents can still attract regulatory attention, ethics complaints, or civil claims.

Examples of potential exposure for agents in lead based programs

Risk Category	Example Behavior	Possible Consequence
Implicit steering	Saying to a buyer, "To move forward, you should get preapproved with this lender that our program prefers."	Alleged RESPA referral violation and client perception of pressure.
Non disclosed incentive	Receiving higher quality leads or increased lead volume when more clients are sent to a specific lender, without telling clients about the incentive.	Regulatory scrutiny, ethics complaints, or consumer protection claims.
Perceived lack of independence	Always recommending one lender that is connected to the platform, with no alternatives provided, because it helps keep lead flow strong.	Claims that the agent put business interests ahead of the client or breached fiduciary duty.
Economic pressure choices	Allowing fear of losing a lead program to influence what is recommended to a buyer.	Long term brand damage, trust erosion, and potential legal or disciplinary action.

Compliance best practices for agents who use any lead generation platform

Maintain real consumer choice

Give clients genuine options for mortgage and settlement services. A good rule of thumb is to offer at least three independent providers when possible, including at least one that is not connected to any portal or lead vendor you work with.

Use clear written disclosures

Explain in plain language how you know each provider, and whether you or your brokerage receive any benefit, leads, or program access that is tied to referrals. Put that language in your buyer packet, listing packet, and email follow ups so that there is a written record.

Document referrals and conversations

Note in your CRM or transaction file when you recommended a provider, which alternatives you mentioned, and what the client chose. If questions ever arise, contemporaneous notes are your best friend.

Separate lead access from your advice

Never tell a client that you must work with a certain lender or settlement provider in order to keep the deal alive or remain in a platform program. Your advice should always be structured around the client's best interest, not your lead pipeline.

Ask vendors the hard questions

Whenever you join a lead program, ask directly whether your continued participation, territory, or lead quality depends on sending business to any affiliated mortgage, title, escrow, or insurance provider. If the answer is yes, or if the explanation feels vague, that is a bright yellow flag.

A sample RESPA friendly statement for your buyer and seller packets

You can adapt language like this to help support your compliance posture:

"I do not receive any compensation, enhanced visibility, lead access, program eligibility, or business advantage based on which settlement service provider you choose. You have full freedom of choice. My role is to help you understand your options and support you in making the best decision for your situation."

Connect this RESPA issue to your own move plan

If this lawsuit has you rethinking your brokerage relationship, your lead sources, or your long term strategy as an Arizona agent, you do not have to guess about your next steps. The Arizona Agent Move Kit Hub pulls together a complete 60 day playbook for switching brokerages in a compliant way. Each Move Kit resource includes written guidance and an embedded training video so you can watch, follow along, and then implement.

Arizona Agent Move Kit: 18 Things to Download Before You Resign – Read via Blog View | Open Canonical Article
How to Transfer Listings and Pendings in Arizona – Read via Blog View | Open Canonical Article
Scripts: How to Tell Clients You Are Switching Brokerages – Read via Blog View | Open Canonical Article
Day One Compliance in Arizona – Read via Blog View | Open Canonical Article
Broker Support SLA: Your First 30 Days at 1912 Realty – Read via Blog View | Open Canonical Article

Frequently asked questions about RESPA, Zillow style lead programs, and agent risk

Are Zillow Flex agents required to send buyers to Zillow Home Loans?

Recent lawsuit filings and industry coverage report allegations that some Zillow lead programs created pressure or expectations that participating agents would direct buyers to Zillow Home Loans for preapproval or mortgage services. Zillow has disputed aspects of these claims, and the case has not yet been resolved in court. Regardless of how that case ends, the safest posture for any agent is to avoid any structure where access to leads or better leads depends on steering buyers to a specific lender.

Is access to real estate leads a thing of value under RESPA Section 8?

Yes. Regulators and courts have repeatedly treated non cash benefits, including access to leads, higher quality leads, marketing exposure, or preferred territories, as potential things of value when they are conditioned on referrals of settlement service business. If a program offers or withholds leads based on whether you send clients to a particular lender, title, escrow, or other settlement provider, that structure can raise significant RESPA Section 8 concerns.

Can a real estate agent avoid RESPA liability by claiming the platform designed the program?

No. RESPA focuses on conduct and benefits, not on marketing language or internal platform design. Agents are licensed fiduciaries, and they remain responsible for the referrals they make and the benefits they accept. Even if a portal, lead vendor, or brokerage designed the program, an agent who participates in an arrangement that exchanges a thing of value for referrals can still face regulatory, ethical, or civil exposure.

The bottom line for real estate professionals

Whether or not the current lawsuit against Zillow ultimately succeeds, the lesson for the industry is clear. When a program connects lead access, lead quality, or continued participation with referrals to a particular mortgage or settlement provider, every participating agent should slow down and examine the structure through a RESPA lens.

Portals and technology companies may change their models over time. Regulators may shift their enforcement priorities. What does not change is this. You hold the license. You are the one clients trust. If you accept a thing of value in exchange for steering them toward a settlement service provider, you may be the one who ends up answering hard questions.