Top real estate agent reported to regulator over alleged secret property flips

A top Melbourne real estate agent has been reported to Consumer Affairs Victoria over claims he secretly purchased two properties he was entrusted to sell, and then flipped them for a profit.

Robert Krnjeta, 34, has been described as “one of the real estate industry’s most accomplished agents”. Until recently, he was the managing director and an owner of Ray White’s top sales office in Victoria, Ray White Werribee.

But Ray White says the company told Krnjeta he could no longer be part of the real estate group in May, after his business partner discovered he took commissions to sell two homes he had subsequently purchased, which is illegal. The alleged discovery was reported to Consumer Affairs Victoria.

This masthead doesn’t suggest that Krnjeta is guilty of the conduct for which he has been reported, only that it has been reported to Consumer Affairs.

Krnjeta claims that no issues about any alleged breaches were raised by Ray White until after he announced he would leave the company to rebrand and expand his business with rival franchise Harcourts.

The property purchases

Property titles and other records show that Krnjeta bought two homes in Melbourne’s west and then sold them less than a year later for impressive profits.

In 2024, a company owned by Krnjeta purchased a three-bedroom property in Wyndham Vale. At $380,000, it was the fourth cheapest of the 186 three-bedroom homes that sold in the outer suburb the year to May 2024, according to Domain records.

The home was renovated and resold at auction six months later for $527,000.

Around the same time, the same company managed by Krnjeta purchased another three-bedroom property in Wyndham Vale for $350,000. The home was the fifth-cheapest three-bedroom home to sell in the suburb in the year to October 2024, out of 203 sold, according to Domain records.

Krnjeta again renovated and resold the home, fetching $635,000 for what the listing agent described as a “magnificent example of contemporary living”, thus achieving a more than 80 per cent increase in the property’s value in less than a year.

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.

Although there are some exceptions to this requirement, agents need to meet a number of strict conditions, including obtaining the home owner’s consent and accepting no commission on the sale.

The law is designed to prevent conflicts of interest, such where an agent sells a property to themselves, or a friend or family member, at a bargain price. The maximum penalty is almost $49,000 or up to two years’ jail.

Krnjeta concedes that his business took the commission on the sale of the two Wyndham Vale properties, but claims his actions weren’t a breach of the act. He said he only bought the homes because the initial “purchaser” who had signed unconditional contracts to buy the properties was unable to obtain finance to settle the sales.

“I agreed to purchase the properties from that purchaser via contract nomination on the same terms, reimbursing the purchaser for the deposit monies paid,” he said.

Ray White Group’s head of media, Alex Tilbury, said Krnjeta’s business partner discovered he had purchased the two homes in May last year, and immediately reported him to Consumer Affairs Victoria.

Eight months later, Tilbury said Ray White was still in the dark on any investigation as Consumer Affairs Victoria had told the real estate agency it couldn’t comment.

“Ray White is not satisfied with CAV’s handling,” she said. “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.”

Krnjeta also said he self-reported to Consumer Affairs. He said he personally repaid the commissions and “substantial additional compensation” to the former owners of the two Wyndham Vale homes in order “to protect my good name and professional standing”.

He claims senior staff at Ray White took his departure personally and were “going at all lengths to damage my reputation”.

“My decision to subsequently join Harcourts was driven purely by commercial considerations.”

‘Flattering’ move to rival franchise

Krnjeta was announced as the new managing director of a new Harcourts office, Harcourts Greater Melton, in September.

In a press release from Harcourts celebrating the move, Krnjeta was described as “one of the real estate industry’s most accomplished agents”.

“Rob has achieved every single accolade … at his previous brand. That he has decided to move to Harcourts is exciting and flattering. I can’t wait to see his plans for his new role,” said Harcourts Australia chief executive Adrian Knowles.

In an email this week, Krnjeta said he was transparent with Harcourts about the circumstances surrounding his exit from Ray White. However, Knowles said Harcourts was not aware of specific allegations relating to his former employment until recently being contacted by The Age.

The Harcourts chief executive wouldn’t comment on whether the allegations were being investigated further.

“Mr Krnjeta joined Harcourts at the end of last year and came to us highly recommended by senior Ray White executives. He has consistently rated amongst his previous brand’s highest performing agents,” Knowles wrote.

“Harcourts has robust systems and processes in place to which all agents are expected to adhere.”

Consumer Affairs Victoria said it wouldn’t comment on individuals or business, but confirmed it was aware of the case.

“Consumer Affairs Victoria takes reports of real estate misconduct seriously and will investigate and take action where necessary,” a spokesman said.

Consumer Affairs has frequently been derided as a “toothless tiger”. In the past financial year, the number of sales campaigns monitored by the regulator’s underquoting taskforce fell by more than 60 per cent, while the number of infringement notices issued also decreased sharply.

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