A class-action lawsuit against real-estate brokerage eXp Realty, alleging unlawful telephone solicitations, has cleared a significant procedural hurdle, with the court denying the company’s motion to dismiss the case. As a result, the lawsuit, Hollis v. eXp Realty, filed in the Western District of Washington, is now moving forward to the discovery phase. This legal development has important implications for real estate firms nationwide, particularly regarding their compliance practices under the Telephone Consumer Protection Act (TCPA).
The core of the lawsuit revolves around allegations that eXp Realty and its agents engaged in unlawful telemarketing practices that violated the TCPA, which restricts certain types of telephone solicitation. The court found that the plaintiffs’ claims were sufficiently substantial to potentially hold eXp Realty liable, not only for the calls made directly by the company but also for calls placed by its independent agents. This could establish a precedent where brokerages are held vicariously liable for the actions of their agents, a significant legal shift that could affect how these companies are structured and managed.
As of late November 2025, the parties involved have filed a joint status report that outlines their respective positions and sets initial deadlines for discovery. However, only the individual defendant named in the lawsuit has been served with discovery requests so far. This marks the beginning of a detailed examination of the practices at eXp Realty and potentially other brokerages, as more information about the telemarketing activities is uncovered.
The progression of this case has immediate ramifications for real estate brokerages across the country. Many firms have traditionally operated under the assumption that their agents, who often work as independent contractors, are responsible for their own actions. However, this case could challenge that assumption, with legal analysts suggesting that brokerages may now face “direct liability” for the actions of their agents, including unsolicited marketing calls. As such, many brokerages may need to reevaluate their compliance programs and implement stricter oversight to ensure they are not held accountable for the behavior of their agents.
This legal development underscores the growing scrutiny of real-estate practices under consumer protection laws, particularly with respect to telemarketing. As the risks of litigation continue to rise, real-estate brokers may increasingly find themselves needing to enforce rigorous TCPA compliance to avoid potential legal exposure. Companies in the industry will likely be looking closely at this case, as its outcome could set a significant precedent for how liability is handled in the context of agent-led marketing activities.
In conclusion, the eXp Realty class action lawsuit marks an important moment in real-estate law, signaling a potential shift toward more stringent accountability for brokerages regarding the actions of their agents. As the case advances into the discovery phase, it is likely that other firms in the real-estate sector will take note, reviewing and possibly overhauling their compliance strategies to mitigate the risk of similar legal challenges. The rising emphasis on TCPA compliance could reshape industry standards and influence how real estate companies operate in an increasingly litigious environment.
