In a development that has sent ripples through Melbourne’s real estate community, a prominent agent has been reported to Consumer Affairs Victoria for allegedly purchasing properties he was commissioned to sell and subsequently flipping them for a profit. The agent in question, Robert Krnjeta, 34, was until recently the managing director and owner of Ray White’s leading sales office in Victoria, Ray White Werribee.
Ray White confirmed that Krnjeta was asked to leave the company in May after his business partner discovered he had taken commissions on two properties he later bought, which is illegal under Victorian law. The company reported the findings to Consumer Affairs Victoria, though it emphasized that the report does not imply guilt.
Allegations and Property Transactions
Krnjeta is accused of buying two homes in Melbourne’s west and selling them within a year for significant profits. Records reveal that in 2024, a company owned by Krnjeta purchased a three-bedroom property in Wyndham Vale for $380,000. The property was later renovated and sold at auction for $527,000, marking a substantial increase in value.
Similarly, another property was bought for $350,000 and resold for $635,000 after renovations. The transactions raise questions under the Estate Agents Act, which prohibits agents from acquiring a beneficial interest in properties they are commissioned to sell without meeting strict conditions.
“Under Victoria’s Estate Agents Act, it is an offence for an estate agent to obtain a beneficial interest in a property they have been commissioned to sell.”
Krnjeta’s Defense and Industry Reactions
Krnjeta has defended his actions, stating that he only purchased the properties after the original buyers failed to secure financing. He claims to have reimbursed the initial purchasers and insists his actions did not breach the law. Furthermore, he asserts that the issues were only raised by Ray White after he announced plans to leave the company for a rival franchise, Harcourts.
Ray White, however, remains dissatisfied with the handling of the case by Consumer Affairs Victoria. Alex Tilbury, head of media for Ray White, expressed frustration over the lack of updates on the investigation, stating the company is committed to maintaining industry standards.
“Ray White is not satisfied with CAV’s handling. We are prepared to make the tough calls, even if it is detrimental to our business, to improve the standards of the real estate industry.”
Transition to Harcourts and Future Implications
Despite the controversy, Krnjeta has taken up the role of managing director at Harcourts Greater Melton. Harcourts has praised his achievements, though it was reportedly unaware of the allegations until contacted by the media. Adrian Knowles, Harcourts Australia’s chief executive, expressed excitement about Krnjeta’s move but refrained from commenting on potential investigations.
The case highlights ongoing challenges in the real estate industry regarding transparency and ethical practices. Consumer Affairs Victoria’s investigation will likely set a precedent for how similar cases are handled in the future.
As the investigation unfolds, industry experts and stakeholders will be watching closely to see whether regulatory bodies will impose stricter measures to prevent conflicts of interest and ensure fair practices in property transactions.
In the meantime, Krnjeta maintains his innocence and is focused on his new role at Harcourts, emphasizing that his departure from Ray White was a strategic business decision rather than an admission of wrongdoing.
This unfolding story underscores the complexities of real estate transactions and the critical importance of adhering to legal and ethical standards in the industry. As more details emerge, the implications for Krnjeta and the broader real estate community remain to be seen.
