Compass sued by homebuyers over $475 transaction fees

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

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

The lawsuit raises 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 comparable Compass transaction fee in the four years before the complaint was filed, along with damages, attorneys’ fees, injunctive relief and the reimbursement of allegedly improper fees.

The complaint alleges that these buyers were charged “an unlawful, deceptive and unfair flat fee or transaction fee,” which was disclosed through an amendment to a purchase contract approved by Florida Realtors and Florida Bar and then collected at closing.

In a statement to InmanCompass defended the use of transaction fees as common in the industry.

“This has been standard practice for years in major markets including Chicago, Philadelphia and Washington, DC, and is being done by many other brands in the industry,” a Compass spokesperson said.

The lawsuit comes amid heightened scrutiny over agent compensation and disclosure in the brokerage industry. In his Annual report 2025Compass said it generates revenue from its own brokerage operations through its share of agents’ gross sales commissions and “certain other compensation, such as fixed transaction commissions.” However, the Florida lawsuit focuses on a transaction that closed in August 2024, before Compass reportedly extensive transaction fees wider this year.

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