The body of a 59-year-old man was found by police in a shed on a property at Gurranang, about 25km north of Grafton in northern NSW, on Monday afternoon.
The discovery was made as police combed the address for clues two weeks after a 79-year-old man's body was found inside a home on the estate.
Detective Superintendent Joe Doueihi on Wednesday said the alleged murder victims were related, adding the younger man came to NSW to help police with their investigation and to sort out the 79-year-old's estate.
He said the 59-year-old was "set upon" by a neighbour when he went to his deceased relative's property.
"It's absolutely shocking for that family and for that community," the homicide squad commander told reporters.
Police allege the neighbour - 32-year-old Nicholas Scott - was responsible for both murders.
Scott, from Gurranang was arrested at a hospital in Grafton, where he was receiving treatment, about midday on Tuesday.
He was taken to Grafton Police Station where he was charged with two counts of murder and stealing a motor vehicle.
Scott briefly appeared in court on Wednesday morning and did not apply for bail.
He will remain behind bars before returning to court in December.
Superintendent Joanne Schultz told reporters on Tuesday the scene was extremely confronting and traumatic for first responders.
"(Police) had attended the property to make further inquiries, they did not anticipate what they found," she said.
Police believe the 59-year-old man died in the past 24 to 48 hours, two weeks after police first descended on the rural acreage to investigate the older man's death.
"The scene was not maintained for the entirety of that time," Supt Schultz said.
The deceased men appeared to have suffered similar injuries.
Strike Force Faneel continues to investigate the deaths.
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