Compass Faces Class-action Lawsuit Over Transaction Fees

Two Florida homebuyers are taking Compass to task over its transaction fees.

In a proposed class-action lawsuit filed last week, the homebuyers claimed that the $475 “flat transaction commission” they were charged on their 2024 home purchase amounted to fraudulent business practices and was “scamming Floridians.”

Jeff Efron and Milissa Efron, who purchased a North Palm Beach condo in June 2024, filed the lawsuit in Palm Beach County court and are seeking class-action status on behalf of all buyers charged a transaction fee by Compass in the last four years.

The complaint claims their Compass agent amended the Florida Realtor-approved purchase and sale agreement to include a flat transaction commission, payable to Compass by the buyer, which they paid during their closing on Aug. 2, 2024. The Efrons claim the fee was included despite being told that their buyer agent would be compensated by the sellers.

The Efrons claim that including the fee violates the Florida Consumer Collection Practices Act and the Florida Deceptive and Unfair Trade Practices Act.

The lawsuit comes after the industry has already spent years grappling with questions over how agents get paid following the landmark class-action lawsuit that led to the implementation of buyer agreements in August 2024, just two months after the Efrons signed their contract.

The country’s largest brokerage is facing heightened antitrust concerns. In January, Compass closed its $1.6 billion acquisition of Anywhere Real Estate, which combined the two largest brokerages in the country by transaction volume.

The following month, The Real Deal reported that Compass was rolling out its fixed transaction commission countrywide, raising some concerns about how the newly-combined brokerage might use its size. During that time, Compass also unveiled a referral program that allowed listing agents to refer leads to Compass buyer agents and collect a referral fee.

“This has been standard practice in major markets, including Chicago, Philadelphia, and Washington, D.C., for years, and is done by many other brands in the industry,” a Compass spokesperson said in February of the transaction fee.