Allegations Against Real Estate Agent
Robert Krnjeta, a prominent Melbourne real estate agent, has been reported to Consumer Affairs Victoria (CAV) over allegations that he secretly purchased two properties he was entrusted to sell and subsequently resold them for profit.
Until recently, Krnjeta, 34, was the managing director and an owner of Ray White Werribee, a top sales office in Victoria.
Ray White's Statement
Ray White stated that Krnjeta was informed in May that he could no longer be part of the real estate group. This decision followed the alleged discovery by his business partner that Krnjeta had taken commissions to sell two homes he later purchased, an action deemed illegal under Victoria's Estate Agents Act. The alleged discovery was subsequently reported to Consumer Affairs Victoria.
Alex Tilbury, Ray White Group's head of media, indicated that eight months later, Ray White remained unaware of any investigation progress, as CAV reportedly stated it could not comment. Tilbury expressed that "Ray White is not satisfied with CAV's handling" and affirmed the company's commitment to upholding industry standards.
Krnjeta's Defense
Krnjeta contends that Ray White did not raise any issues regarding alleged breaches until after he announced his intention to depart the company and rebrand with Harcourts, a rival franchise.
He concedes that his business received commissions on the sale of the two Wyndham Vale properties. However, Krnjeta claims his actions did not breach the act, stating he purchased the homes via contract nomination after the initial buyers failed to secure finance for settlement. He also reported self-reporting to Consumer Affairs and personally repaid the commissions along with "substantial additional compensation" to the former owners of the properties to protect his professional standing. Krnjeta alleges that senior Ray White staff took his departure personally and were attempting to damage his reputation, asserting his move to Harcourts was driven by commercial considerations.
Property Transactions
Property records show that a company owned by Krnjeta acquired two homes in Melbourne's west and sold them less than a year later at significant profits:
- Property 1 (Wyndham Vale): Purchased for $380,000 in 2024. After renovations, it was resold at auction six months later for $527,000.
- Property 2 (Wyndham Vale): Acquired for $350,000. Following renovations, it was resold for $635,000, representing an increase of over 80 percent in value in under a year.
Legal Framework
Under Victoria's Estate Agents Act, an estate agent commits an offense if they obtain a beneficial interest in a property they have been commissioned to sell. While exceptions exist, strict conditions apply, including obtaining the homeowner's consent and forgoing commissions on the sale. This law aims to prevent conflicts of interest. The maximum penalty for such an offense is nearly $49,000 or up to two years' imprisonment.
Harcourts' Involvement and Regulatory Response
Krnjeta was announced as the new managing director of Harcourts Greater Melton in September. Harcourts Australia chief executive Adrian Knowles stated that Krnjeta came highly recommended by senior Ray White executives and had consistently been a top performer.
Knowles indicated that Harcourts was not aware of specific allegations related to Krnjeta's former employment until recently contacted by a media outlet. He declined to comment on whether the allegations were being further investigated by Harcourts, stating that the company has robust systems and processes that all agents are expected to follow.
Consumer Affairs Victoria confirmed its awareness of the case but declined to comment on specific individuals or businesses, reiterating that it investigates and acts on reports of real estate misconduct when necessary. CAV has previously faced criticism for its enforcement capabilities.