T
he Manitoba Securities Commission has imposed severe penalties on a real estate agent who concealed defects in a Winnipeg home before selling it and lied about his knowledge during an investigation. Mahmood Peyawary, who worked with Royal LePage, was barred from selling homes for 36 months and ordered to pay nearly $35,000 after he sold the home without disclosing its deficiencies.

    Peyawary had bought the Westdale neighbourhood home in March 2019 and concealed major foundation cracks during renovations. He sold it for just under $250,000 on June 20, 2019, without revealing the defects to the buyers. The new owners discovered the cracks after moving in, with some recently filled with spray foam and others covered by drywall and wooden studs.

    Peyawary misrepresented the home's condition in promotional listings and lied about his knowledge of the foundation cracks during an interview with commission investigators. He also withheld relevant receipts from investigators and claimed that the basement was completely finished when he bought the home.

    Another real estate agent, Kyle Scrimshaw, who worked with Royal LePage and was hired by Peyawary to do labour work on the home, was also penalized for lying to investigators about his involvement in the renovations. Both Peyawary and Scrimshaw were ordered to take an educational course if they re-register as real estate agents.

    The commission panel stated that actively concealing deficiencies in a property and then lying to investigators is a "fundamental betrayal" of the responsibilities of a registrant under the Real Estate Services Act. The penalties imposed on Peyawary and Scrimshaw are intended to have a deterrent effect on the industry, where registered agents are expected to help the public buy or sell homes while maintaining their own integrity.