Pete Deuart, a 38-year-old snowmaker, had been hoping to secure the three-bedroom property in Kiely Lane as a home for his growing family.
Instead he is questioning the ethics of the property industry, and has laid a complaint with the Real Estate Agents Authority (REAA) over the matter.
After a three-month search he spotted the stand-alone property on TradeMe last month, listed at $385,000. It was exactly what he was looking for.
"There has not been a house like that probably for sale in Queenstown for about 10 years. When you're looking every day you know when something comes up like that," he said.
He immediately called listing agent Gavin Castles of Ray White, only to find that the property was under contract to Wayne Cafe - another Ray White agent.
The day after Mr Castles secured the listing he took Ray White representatives, including Mr Cafe, through the property on a familiarisation visit, Mountain Scene reported.
The property was listed on Ray White's website and then on Trade Me that afternoon. By noon the next day, Mr Cafe had conditionally bought it.
Mr Castles told Mountain Scene he took Mr Cafe's initial offer of $365,000 to his vendors, advising them to bump Mr Cafe up to the $385,000 asking price and sign the deal - which they did.
Mr Deuart wasn't giving up and in spite of seeing the house only from the outside he phoned Mr Castles saying he wanted to make a back-up offer of $390,000. He would have gone to $400,000.
"He [Mr Castles] said, 'you can't, the contract's done'.
"In the end, basically I forced him, I basically had to call him back and say 'no I want to make an offer'."
But by the time his wife had walked down to the office to make the offer in writing, the sale had gone unconditional, said Mr Deuart.
He later discovered the buyer was a Ray White agent.
Ngaire Vanderhoof of the REAA confirmed a complaint had been laid and said it was now going through the disciplinary tribunal process.
"I don't think it is what you'd hope from a real estate agent," said Mr Deuart.
"People need to be aware that's going on and it'll all come out once the REAA investigates."
Ray White chief executive Carey Smith told APNZ that while he wasn't familiar with the full details of the case he was aware the sale had created some controversy.
He said Mr Cafe had sold his property six months earlier so there was "nothing untoward" about him being in the market for another home.
"A real estate agent needs to have somewhere to live."
Mr Smith said real estate agents were like anyone else who wanted to buy property and there are certain rules and regulations they must adhere to.
"There is disclosure that every agent needs to make under Section 134 of the Real Estate Agency Act and there's a form that needs to be completed, and in this instance that form has been completed.
"If the correct procedure is not taken ... we definitely frown on any real estate agent buying a property without disclosure."
Mr Smith said the vendor had seen and signed that form.
"It's not unusual for properties to go quick," he said.
Asked for comment, Mr Cafe said "There is no further comment that anyone from the Ray White organisation would like to or feel there is a need to make and we look forward to and welcome the REAA investigation should there be one."
Mr Cafe declined to make any further comment.
Mr Castles also declined to comment and the previous owner of the property could not be reached.
