Compass of Florida is facing a class action lawsuit in Palm Beach County over $475 in transaction fees that homebuyers say were unfairly charged to them.
Compass Florida is facing a proposed class action lawsuit in Palm Beach County over a $475 transaction fee that two Florida homebuyers say was improperly added to their purchase contract and collected at closing.
The lawsuit, filed June 23 by Jeff and Milissa Efron, accuses Compass Florida of unfair and deceptive business practices related to undisclosed flat fees charged to customers of the buyers named in the complaint. The Efrons, who purchased a North Palm Beach property in August 2024 using Compass agents, claim they were told the buyer’s agent would be compensated through the commission paid by the seller, but then paid Compass a $475 “flat transaction fee” at closing.
The complaint alleges that Compass inserted the fee into the “Additional Terms” section of the home purchase agreement approved by Florida Realtors and Florida Attorneys. Plaintiffs claim that this amendment is not an authorized contract modification and constitutes an unauthorized legal practice by a non-lawyer.
The lawsuit asserts claims under the Florida Consumer Recovery Practices Act and the Florida Deceptive and Unfair Trade Practices Act. The group is seeking class action status on behalf of Florida buyers who paid similar Compass transaction fees in the four years prior to the filing of the complaint, seeking damages, attorneys’ fees, injunctive relief, and reimbursement of allegedly unreasonable fees.
The complaint alleges that these buyers were charged “unlawful, deceptive and unreasonable flat fees or transaction fees” that were disclosed through amendments to the purchase agreements approved by Florida Realtors and the Florida Bar and were collected at closing.
In a statement to Inman, Compass defended the use of transaction fees as common across the industry.
“This has been standard practice for many years in major markets such as Chicago, Philadelphia and Washington, D.C., and is also done by many other brands in the industry,” a Compass spokesperson said.
The lawsuit comes amid increased scrutiny of agent compensation and disclosure across the securities industry. Compass said in its 2025 annual report that it derives revenue from its brokerage business through a portion of agents’ gross sales commissions and “certain other fees, such as flat transaction fees.” But the Florida lawsuit focuses on a deal that closed in August 2024, before Compass reportedly expanded its trading fees more broadly this year.
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