Zillow amends lead-generation program to protect confidentiality of Realtors’ clients

Some Realtors complained that disclosures under the original version of Zillow's Premier Agent Flex Pricing program would compromise the confidentiality of their clients

National /
Jan.January 06, 2019 02:00 PM

(Credit: iStock)

Zillow amended its newest lead-generation program for real estate agents after some Realtors complained that the program’s requirements comprised the confidentiality of their clients.

In September, Zillow introduced the original contract for the lead-generation program, called Premier Agent Flex Pricing. Zillow launched the program in Florida and subsequently introduced it in other states.

The contract included a disclosure clause that required participating real estate agents to submit information to Zillow about each property sale they completed during the term of the contract and six months after the term – including property sales that agents completed without Zillow’s involvement.

The disclosure clause required details about each completed transaction plus the names, email addresses, phone numbers and mailing addresses of both the seller and the buyer.

A real estate broker told Inman that the disclosure clause appeared to be “directly counter to Realtors’ requirements for confidentiality.”

In response to such criticism, Zillow quietly updated the contract for its Premier Agent Flex Pricing program by removing the disclosure clause.

The National Association of Realtors’ Code of Ethics and Standards of Practice prohibits Realtors from sharing confidential information about clients without their prior consent.

A Zillow source said the purpose of the disclosure clause was to gather information that would help the company improve its lead-referral algorithm.

The Premier Broker Flex Pricing allows participating brokers to receive leads from Zillow without making an upfront payment. Instead, brokers pay Zillow a share of the commission, or a “performance advertising expense,” when they complete a sale.

Zillow also has a lead-funneling program called Premier Agent, which requires brokers to make upfront payments for leads. [Inman]Mike Seemuth


Related Articles

arrow_forward_ios
AIMCO founder Terry Considine and a rendering of the Grand Flamingo tower
Miami Beach board rejects Aimco’s proposal for Grand Flamingo tower
Miami Beach board rejects Aimco’s proposal for Grand Flamingo tower
Aventura Mayor Enid Weisman (Facebook via Weisman, Getty)
Aventura votes to require HOAs to submit critical reports within 48 hours
Aventura votes to require HOAs to submit critical reports within 48 hours
The current Miami Beach North Shore library with Mayor Dan Gelber (Google Maps, Gelber)
Miami Beach seeks buyers for city-owned development sites
Miami Beach seeks buyers for city-owned development sites
The partially collapsed 12-story Champlain Towers South condo building (Getty)
Inside the tug-of-war over the Surfside condo site’s future
Inside the tug-of-war over the Surfside condo site’s future
 Adam Neumann (Getty, Bal Harbour Florida)
Ex-WeWork CEO Adam Neumann inks $44M deal for Bal Harbour properties
Ex-WeWork CEO Adam Neumann inks $44M deal for Bal Harbour properties
Alex Sapir and Giovanni Fasciano with Arte by Antonio Citterio in Surfside (Photos via Arte by Antonio Citterio/PR Newswire)
Miami penthouse sets cryptocurrency sale record: $22.5M
Miami penthouse sets cryptocurrency sale record: $22.5M
(iStock)
South Florida resi construction starts soar in March
South Florida resi construction starts soar in March
Eden Multifamily heads Jay Massirman and Jay Jacobson with Cypress Equity Investments CEO Michael Sorochinsky (rendering courtesy of MSA Architects)
Eden Multifamily, Cypress Equity score $24M construction loan for Tamarac apartments
Eden Multifamily, Cypress Equity score $24M construction loan for Tamarac apartments
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...