In one of Melbourne’s most exclusive enclaves, a white Georgian-style mansion stands as a testament to the fragility of luxury real estate. Even as the property appears pristine from the street, it has become the center of a bitter legal battle after being declared an un-lettable Toorak home by the Supreme Court.
Daniel Dejanovic, who purchased the residence in 2020 for approximately $2.7 million, is now pursuing damages against the former owners, their legal representatives, and the real estate agency that brokered the deal. The lawsuit follows a previous legal victory in which a judge found that the property’s neighbor had engaged in a campaign of harassment that rendered the home uninhabitable for tenants.
The residence, which is split into two separate dwellings, has sat empty since 2023. According to court findings, three successive sets of tenants were forced to vacate the property due to what was described as substantial and unreasonable noise emanating from the neighboring residence.
A Pattern of ‘Substantial and Unreasonable’ Noise
The current legal turmoil is the second chapter in a saga of neighborhood conflict. Last year, Mr. Dejanovic successfully sued his neighbor, Suzanne Sheppard, who resides in the left portion of the divided mansion. Supreme Court Judge Kerri Judd awarded Mr. Dejanovic $207,774 in damages after an eight-day trial.
The court found that Ms. Sheppard had intentionally created noise for the purpose of annoyance. This behavior included screaming or yelling during the day, playing the radio and television at excessive volumes, and regularly banging on the shared party wall in the middle of the night. These actions directly led to the loss of rental income as tenants repeatedly fled the property.
While the court banned Ms. Sheppard from continuing these behaviors, Judge Judd noted at the time that it appeared “very clear” the behavior would persist if the home were ever re-let, effectively labeling the property as un-lettable under current conditions.
Allegations of Non-Disclosure and Inducement
Mr. Dejanovic is now turning his attention to the parties involved in the 2020 sale. In a writ filed in the County Court on March 17, he alleges that material facts regarding Ms. Sheppard’s history of behavior toward previous occupants were intentionally withheld to induce him to purchase the property.
The legal action targets the former owners, Joshua and Abigail Fayman, their legal counsel at SBA Law, the real estate agency RT Edgar, and the specific agent who handled the transaction. Documents prepared by Best Hooper Lawyers claim that Mr. Dejanovic suffered a significant financial loss, specifically the difference between the price paid and the property’s true value at the time of acquisition.
The claim highlights that the property was advertised in 2020 as capable of netting rent of up to $1,550 per week. The documents suggest the Faymans had received a discount when they originally acquired the property in 2018, hinting that the neighbor’s volatility was a known factor affecting the home’s value.
Timeline of Events and Financials
| Year/Date | Event | Financial Detail |
|---|---|---|
| 2018 | Faymans purchase property | Acquired at a discount |
| 2020 | Dejanovic purchases property | $2.7 Million |
| 2020 | Property advertised for rent | Up to $1,550 / week |
| 2023 | Property becomes vacant | Rental income ceased |
| Last Year | Supreme Court Judgment | $207,774 awarded to Dejanovic |
| March 17 | County Court Writ filed | Damages sought from vendors/agents |
The Neighbor’s Perspective
Suzanne Sheppard, while not a defendant in the current writ, has expressed her willingness to testify as a witness for the Faymans. She contends that her actions were a response to long-standing frustrations regarding sound and vibrations caused by the heating and air-conditioning units in Mr. Dejanovic’s residence.
Sheppard stated that she attempted other avenues to stop the noise before resorting to banging on the pipes and walls. “I now understand that me banging on the pipes to secure the tenants to turn the heating-cooling unit systems off is wrong,” she said, adding that she was unaware her response was legally problematic until the previous trial.
Currently, Ms. Sheppard’s portion of the mansion is listed for sale with a price guide between $2.6 million and $2.8 million. Mr. Dejanovic’s property remains off the market, neither for sale nor for rent.
Agency and Legal Response
Representatives from RT Edgar have pushed back against the notion that they were party to any deception. Jeremy Fox of the agency stated that they had not yet received a copy of the writ and described the situation as a “dispute between two neighbours” in which the agency is a third party being “dragged into it.”
The Faymans, SBA Law, and the individual real estate agent involved have not yet provided public comments on the allegations.
Disclaimer: This article reports on ongoing legal proceedings. All parties are presumed innocent of wrongdoing unless proven otherwise in a court of law.
The next phase of the dispute will unfold in the County Court, where the judge will determine if the non-disclosure of a neighbor’s behavior constitutes a breach of contract or a fraudulent inducement of sale. Further updates will follow as the discovery process reveals what the vendors and agents knew prior to the 2020 transaction.
Do you think real estate agents should be required to disclose “difficult” neighbors during a sale? Share your thoughts in the comments below.
