Agent banned from industry for rental bond breaches

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Date
9 August 2024
Category
Court actions News alerts

A real estate agent who accessed and misused rental bonds funds has had his licence to practice cancelled for 5 years. 

Christopher Paul Kontossis, 36, of Ivanhoe, moved bond money into 3 separate bank accounts not linked to the legitimate claimants, between 29 September 2022 and 16 March 2023.  

In total, Kontossis misdirected 26 electronic bond claims valued at $21,540. 

As well as being prohibited from working as an agent, Kontossis will also be unable to work as an estate agent’s representative for 2 years - effectively banning him from employment in the industry for that period of time.  

Consumer Affairs Victoria commenced disciplinary proceedings against Kontossis in the Victorian Civil and Administrative Tribunal (VCAT) after the Residential Tenancies Bond Authority raised concerns about potential suspicious transactions. 

VCAT found that Kontossis:  

  • did not act fairly, honestly, in good faith and to the best of his knowledge and ability in his role as an agent  
  • engaged in conduct that was unprofessional or detrimental to the reputation or interests of the industry, and 
  • was not a fit and proper person to hold an estate agent’s licence during the period he committed the offences. 

He was also fined $2500. 

Kontossis worked at the time for National Real Estate (Aust) Pty Ltd (ACN 005 500 541), trading as Barry Plant Reservoir. It is not suggested that his employer was aware of his actions, and the agency has since repaid the funds. 

Director of Consumer Affairs Victoria, Nicole Rich, said agents who did not manage rental bond money as legally required were failing a fundamental requirement of their profession. 

‘Estate agents are placed in a position of trust when performing their duties. Having access to clients’ funds – whether buyers, sellers, renters or rental providers – brings with it great responsibility,’ she said. 

‘Bond money doesn’t belong to agents – they can’t access it or use it for any purpose other than overseeing it as required in transactions between renters and rental providers.’ 

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