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Onthehouse says court matter won't hurt

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The chief executive of online real estate site Onthehouse has quit after legal action was launched against him.

Onthehouse released a statement on Wednesday saying the board has completed its investigation into a matter relating to the company's founder Michael Fredericks.

It says Mr Fredericks, who stood aside as chief executive pending the investigation, has agreed to resign.

This comes after legal action was launched against him in Queensland's Supreme Court last month.

"The matter arose from Mr Fredericks acting as trustee of a trust, separate to Onthehouse Holdings Limited, and not in Mr Fredericks' position as CEO or managing director," the statement said.

The company has not detailed what the court case was about, however the statement said it had caused unnecessary distraction and publicity.

The former lawyer listed Onthehouse on the Australian share market in 2011 after founding it five years earlier.

The company, which is worth about $45 million, provides a raft of free property information for home owners and real estate agents.

Onthehouse shares were down one cent to 50.5 cents at the close.

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Online real estate CEO resigns after internal board investigation.

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