A lawsuit filed earlier month is alleging that a top agent for real estate startup Side illegally operated as a lawyer in order to secure listing contracts, further claiming that this “ongoing and systematic” practice represents a failure by Side in its legal, supervisory responsibilities.
The lawsuit was filed by a debt collector named Green Matrix Securities, who claims that Marjorie Scholtz, a licensed California real estate agent who also founded rent-to-own platform Verbhouse, represented the debtor without a law license.
That included filing papers in state superior court and providing legal advice, as she allegedly sought to sell the house that Green Matrix wanted a lien against.
“On August 17, 2026, Scholtz stood and presented argument for (the debtor) in…San Francisco Superior Court, and was admonished by the court as not being a legal representative,” the lawsuit claims. Scholtz also prepared other “meritless” legal documents.
Providing legal advice without a license to practice law is essentially always illegal. In California, it is a misdemeanor for first violations. Depending on the jurisdiction, even offering advice on certain forms or legal documents can constitute a violation.
Green Matrix also claims that “on information and belief,” Side knows or “should have known” about Scholtz’s conduct. Without providing further details, the lawsuit also describes this conduct as “the operating model by which Scholtz and the Side brokers generate real estate business,” and claims the misconduct is still “ongoing.”
Scholtz’s license was transferred from Side to a company called Empress Real Estate two days after the lawsuit was filed, according to the California Department of Real Estate.
Side was launched in 2017, as a platform to support independent brokerages, peaking at a $1 billion valuation during the pandemic boom market. It operates in 19 states, with over 500 brokerage “partners.”
Green Matrix is asking for a court order to prevent any further fraudulent legal representation by or advice by Scholtz, and “disgorgement of Defendants’ ill-gotten gains,” along with attorney’s fees.
Side did not immediately respond to a request for comment. Scholtz also did not respond to emailed requests for comment.
