Zillow Accuser REX Hires Big Shot Lawyer Despite Apparently Being Broke

May 17, 2022
Share this Post: 

The discount brokerage involved in a bitter court battle against Zillow and the National Association of Realtors (NAR) has hired one of the most prominent lawyers in the country.

U.S. realtor publication Inman confirmed that REX has secured the services of famed lawyer David Boies who is famous for representing the likes of Al Gore, Harvey Weinstein, the NFL and failed startup Theranos among others.

In an email to Inman, Boies said: “the case is important to enhancing competition in housing markets,” and that “Effective competition in housing markets is critical to every homeowner and potential homeowner”.

 

A suit with a lot potentially at stake for portals

REX is currently suing the National Association of Realtors and Zillow for what it feels is an unfair and exclusionary rule which states that MLS participants, including Zillow, must show listings from non-MLS members on a separate section of their websites.

As a discount brokerage, REX relied heavily on the claim that American consumers pay too much in broker fees. Its lack of an MLS membership has seen its listings relegated to Zillow's 'Other Listings' tab (below) which gets far less traffic than the main tab.

 

 

Zillow'S Other Listings Tab

Zillow's 'Other Listings' Tab

The suit against Zillow and NAR started in March 2021 and has seen an unsuccessful countersuit from the NAR and a lot of back and forth in the American real estate media. A lot is potentially at stake in the judgement as Zillow and other portals might be forced to include listings from non-MLS fee-paying entities in their main tabs if REX is successful.

 

All for nothing if REX has ceased to exist?

The news that David Boies was to take up REX's case came immediately after rumours began swirling through U.S. realtor circles that the Texas-based brokerage had shut up shop. The company admitted defeat on some level back in October when it reluctantly joined the MLS system and there were two rounds of layoffs reported in 2021.

Agents at REX were reportedly told last Thursday to find a different brokerage to work for and in an email to agency publication Real Trends REX's General Counsel Michael Toth appeared to confirm reports that the company had folded by referring to REX in the past tense.

“Zillow and NAR colluded to protect their profits, REX’s innovative business model was sacrificed.”

It would appear that the lawsuit against Zillow and the NAR is the last dance for REX...

May 17, 2022
Since March 2020 Edmund's job has been to read about, write about, collect data on, analyse and generally know about real estate marketplaces and the companies that run them. Before that he worked at the aggregator Mitula Group (which became Lifull Connect) for five years.

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Propertypal Belfast Houses
Agents Agree to End Boycott of Northern Irish Portal PropertyPal After Talks

An agent boycott of leading Northern Irish real estate vertical PropertyPal appears to have been ended after positive talks between...

Read More
Investment And Funding Roundup 19 July 2024
Investment and Funding Roundup: Lhoopa, StudentTenant, Renters.pl

We've spotted three significant funding and investment movements this week, from an $80 million round in South Asia and two...

Read More
Product Roundup 19 July 2024
Product Roundup: SeLoger, SMG, OnTheMarket, Zoopla, BCG, ViewIT

We've spotted six interesting stories around the world in this week's Product Roundup, including some healthy competition in the UK....

Read More
Costar And Realtor.com
Move Inc. Files Injunction Request Against Unimpressed CoStar

Move Inc. has filed a motion for a preliminary injunction against CoStar and its former employee James Kaminsky from "any...

Read More

Editor's Pick