A proposed class action lawsuit accusing Compass Florida of improperly charging homebuyers a $475 transaction fee has been voluntarily dismissed less than two months after it was filed.
A Palm Beach County court docket reviewed by Inman shows that the plaintiffs filed a notice of voluntary dismissal without prejudice on Aug. 4. The case was subsequently closed Aug. 5, leaving the plaintiffs free to refile the claims. Real Estate News first reported the dismissal on Monday.
Florida residents Jeff and Milissa Efron sued Compass Florida on June 23, alleging that the brokerage engaged in unfair and deceptive business practices by charging them a $475 “flat transaction commission” when they purchased a North Palm Beach home in August 2024.
The Efrons alleged that they had been told their buyer agent would be compensated through the commission paid by the seller, but that the additional fee was later included in an “additional terms” section of their purchase contract and collected at closing.
The complaint alleged that the modification to the Florida Realtors and Florida Bar-approved contract was improper and amounted to the unauthorized practice of law by a non-lawyer. The plaintiffs brought claims under the Florida Consumer Collection Practices Act and the Florida Deceptive and Unfair Trade Practices Act and sought to represent a class of Florida buyers who had paid similar Compass transaction fees during the previous four years.
Compass defended the practice after the lawsuit was filed.
“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 told Inman in June.
The court docket shows that Compass was served in July and that the plaintiffs had begun discovery before filing the voluntary dismissal.
The dismissal comes amid broader scrutiny of transaction and administrative fees charged by real estate brokerages. A Consumer Policy Center report published last month estimated that so-called “junk fees” may cost buyers and sellers nearly $2 billion annually, while raising concerns about whether such charges are clearly disclosed to consumers.
The Florida lawsuit was cited in that report as an example of private litigation challenging transaction fees. Compass has also faced heightened scrutiny over other aspects of its business. Sen. Elizabeth Warren, D-Mass., last week requested information from Compass and Midwest Real Estate Data about their private-listing partnership, raising concerns about industry consolidation, consumer access to housing information and potential effects on housing costs.
