Note: this article summarizes terms from the contracts that you and your broker signed to participate in the Flex program. In case of any conflict, the contract terms take precedence. Please contact your Zillow Growth Advisor or flexpayments@zillowgroup.com if you have any questions.
This article outlines when Flex agents and brokers are responsible for paying Success Fees and the types of transactions that qualify for a Success Fee.
What you'll learn in this article:
- When is a Flex agent responsible for paying a success fee on a Flex transaction?
- Are there exceptions to when a Flex agent is responsible for paying a success fee?
- What types of transactions are subject to the Success Fee?
- Are Success Fees due on transactions with related parties (family, affiliated business, LLC)?
Flex is a program from Zillow Premier Agent built with a singular vision – partnering with the best agents in the business to increase transactions. Flex does this by providing connections and leads and routing them to the agents best positioned to convert them to home sales. We introduce you to home shoppers by creating a connection live over the phone, and you pay a Success Fee to Zillow upon closing a transaction with that buyer or seller. In Flex, we are aligning the success of our business with yours – we only win when you win.
When is a Flex agent responsible for paying a success fee on a Flex transaction?
When a Flex agent closes a residential real estate transaction from a Flex connection, the agent and their broker are required to pay a referral fee (also known as a “Success Fee”) to Zillow.
The agent and broker are jointly and severally liable for the fee, which means that if one party is unwilling or unable to pay, the other party is still responsible.
- Three or more transactions: Success Fees are due on up to two transactions with the same connection; any additional transactions are not subject to a Success Fee.
- Two-year limit: If the first transaction takes place more than 2 years after the broker received the connection from Zillow, or if a second transaction takes place more than 2 years after the first transaction, then no Success Fee is due.
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Pre-existing relationship: If you receive a Zillow connection for a customer that you were already working with, you can request a Success Fee Exemption for any future transactions with that connection. Zillow will approve an exemption request if you:
- Notify Zillow within 48 hours after receiving a PA Flex Connection; and
- Provide evidence of active 2-way communications in the 30 days before you received the connection from Zillow.
What types of transactions are subject to the Success Fee?
| Subject to a Success Fee | Not Subject to a Success Fee |
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Residential Transactions – A Success Fee is due for residential transactions, which includes any type of property zoned for residential use as determined in Zillow’s discretion. This could include (but is not limited to) properties such as:
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Commercial Property Transactions- Generally, transactions involving commercial property are not subject to the Success Fee. This could include (but is not limited to):
Leasing – Success Fees are only due for transactions involving the purchase and sale of a property; Success Fees are not due when a Flex agent helps a client secure a lease for any type of property. |
Are Success Fees due on transactions with related parties (family, affiliated business, LLC)?
A connection may introduce you to other parties that participate in a transaction. A Success Fee is due when you are introduced to:
- A family member If a Zillow user submits a connection request on behalf of a family member, a Success Fee is due on residential transactions with that family member. Examples can include a user submitting on behalf of an elderly family member, or an English-speaking user submitting on behalf of a non-English speaking family member.
- A related business entity If a Zillow user submits a connection request and then closes a residential transaction through an LLC or another business that they own (either partially or fully), a Success Fee is due.
Connections received from other sources
If you received a PA Flex Connection from another source before receiving the connection from Zillow, and can show evidence of a pre-existing relationship, you may be eligible for a Success Fee Exemption.
Success Fee Exemptions
If you believe that you do not owe a Success Fee for a transaction or a PA Flex connection, please visit Flex Success Fee Exemption Request for more information on how to request an exemption, or ask your Growth Advisor. Learn more about Success Fee exemptions.
Questions?
Please contact us at flexpayments@zillowgroup.com if you have a question about a specific connection, property or transaction.