Trulia Class Action Says Website Is Unfair To Realtors

Two New York real estate agents claim that the website Trulia unfairly funnels prospective buyers to agents who sign up for the service.

Plaintiffs Andrew Kim and John Doe Real Estate Broker say they work in real estate, acting as a broker and selling property. They allege that they lost out financially because they refused to engage in Trulia’s deceptive practices.

According to the Trulia class action lawsuit, the company operates one of the biggest real estate websites in the United States. Trulia reportedly advertises that they are able to make the buying and selling of properties easier.

“However, defendant’s practices are unfair and deceptive towards traditional real estate brokers and listing agents and cause consumer confusion, economic harm and deception,” contend the plaintiffs. “Defendant’s actions are equivalent of buying a billboard to advertise the listing of another real estate broker and including a picture of the property and telephone number for prospective buyers to call.”

The Trulia class action lawsuit describes the process for consumers who decide that they want more information about a property listed on the website. First, certain real estate agents sign up with Trulia to be featured on their website. Their picture is put on the site and includes information about specific properties. These agents are called “Premier Agents.”

According to the plaintiffs, when prospective home buyers search for open houses in their area on Trulia’s website, they are given a list. When the prospective buyer clicks the listing link, they are allegedly presented with contact information for one of Trulia’s Premier Agents – who they claim is the listing agent.

Alternatively, prospective buyers are offered the option to enter their contact information, which is forwarded to Trulia employees who send it along to a Premier Agent.

The complaint notes that Trulia does not obtain the specific consent of the “listing agent” or agent who the home seller has contracted with to sell the home to put the property on their website. Further, contact information for Trulia’s Premier Agents is highlighted, and information from the actual listing agent is buried in unappealing grey. The Trulia class action states that it is highly unlikely that prospective buyers will meet the listing agent.

As a result, alleges the Trulia class action lawsuit, Premier Agents are able to funnel home buyers into expensive buyers’ agreements and listing agents lose out on valuable leads.

In addition to being deceptive to prospective home buyers, Trulia’s marketing practices violate real estate laws, the plaintiffs say.

“The relevant laws require conspicuously and adequately disclosing the listing agents to prospective buyers,” alleges the complaint. “The purpose of this is to prevent prospective buyers from falling into the clutches of real estate agents who have no interest in selling them the property they viewed and no relation to or knowledge about the listing for which they submitted an inquiry.”

The Trulia class action lawsuit seeks to represent all real estate brokers in New York. The plaintiffs are seeking a court order to stop Trulia from operating its website in such a manner, along with damages.

Have you been affected by Trulia’s real estate marketing practices? Let us know in the comments below!

The plaintiff is represented by Spencer Sheehan of Sheehan & Associates PC.

The Trulia Class Action Lawsuit is Kim, et al. v. Trulia LLC, Case No. 1:19-cv-06733, in the U.S. District Court for the Eastern District of New York.

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