Compass sued by homebuyers over $475 transaction fee

Compass Florida is facing a proposed class action lawsuit in Palm Beach County over a $475 transaction fee that two Florida homebuyers allege 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 tied to what the complaint describes as an undisclosed flat fee charged to buyer clients. The Efrons, who bought a North Palm Beach property in August 2024 using a Compass agent, allege they were told their buyer agent would be paid through the commission paid by the seller, but later paid Compass a $475 “flat transaction commission” at closing.

The complaint alleges that Compass inserted the fee into an “additional terms” section of a Florida Realtors and Florida Bar-approved residential purchase contract. The plaintiffs argue that the modification was not an approved contract change and amounted to the unauthorized practice of law by a non-lawyer.

The suit brings claims under the Florida Consumer Collection Practices Act and the Florida Deceptive and Unfair Trade Practices Act. It seeks class-action status on behalf of Florida buyers who paid a similar Compass transaction fee during the four years before the complaint was filed, along with damages, attorney fees, injunctive relief and the return of allegedly improper fees.

The complaint alleges those buyers were charged “an illegitimate, deceptive and unfair flat fee or transaction fee” that was disclosed through a modification to a Florida Realtors and Florida Bar-approved purchase contract and then 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 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 said.

The lawsuit comes amid heightened scrutiny over agent compensation and disclosure across the brokerage industry. In its 2025 annual report, Compass said it generates revenue from its owned-brokerage business through its share of agents’ gross sales commissions and “certain other fees, such as flat transaction commission fees.” The Florida lawsuit, however, focuses on a transaction that closed in August 2024, before Compass reportedly expanded transaction fees more broadly this year.

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