The issues involving land ownership and land use in Prince Edward Island began in the early history of the province. The Island was initially divided into sixty-seven 20,000-acre lots or townships. These lots were allocated in advance of settlement to a relatively small elite group of absentee proprietors. Over time, the land was purchased from the absentee landlords and returned to local ownership.

Issues associated with absentee landlords resurfaced again in the 1960’s, as non-residents began investing in local real estate throughout the province. As a result, substantial amounts of land in the coastal areas fell out of the control of local residents. In 1972, Government introduced amendments to the Real Property Act to restrict the purchase of land by non-residents.

In 1981, an application by a non-resident corporation to acquire 6,000 acres prompted public concern over the perceived impacts of land ownership distribution and its implications for the future. Some viewed this as giving pre-eminent control of the province’s agricultural industry to one company. This led to the introduction of Bill 37 - the Lands Protection Act (the Act) in 1982.

A person’s aggregate land holding consists of all land holdings of that person and of his/her minor children; and the relevant amount of land holdings of any corporation in which he/she, they or any of them, hold more than 5% of the issued voting shares.

A corporation’s aggregate land holding consists of all land holdings of that corporation; and all land holdings of any person who holds more than 5% of the issued voting shares in that corporation and of his/her minor children; and the relevant amount of the land holdings of any other corporation in which the corporation in #1 or any person in #2 holds more than 5% of the issued voting shares.

The Commission is responsible for the general administration of the Act. It reviews and obtains pertinent information and makes recommendations to Government on applications for land purchases governed by the Act.

Government makes the final decision on applications for land purchases governed by the Act based on the recommendations of the Commission.

Among the factors considered by the Commission are:

• aggregate land holding
• coastal access
• shareholder structure
• potential economic impact
• residency status
• local significance
• number of parcels/acreage
• general land use in area
• shore frontage
• traditional land use in area
• concentration of ownership
• speculative intent/nature
• intended use
• impact on land values
• capability for agriculture
• land fragmentation
• capability for forestry
• local advertisement
• ecological value
• need for identification
• land value
• other parcels owned by applicant

A non-resident person or corporation, or a resident corporation must make application if the person or corporation will have an aggregate land holding in excess of 5 acres, or having a shore frontage in excess of 165 feet.

A non-resident person who acquires a land holding by gift, devise or inheritance from a spouse, sibling or direct descendent or ancestor is exempt from making application.

Government may decide to approve, approve with identification for non-development use, approve with special conditions or deny an application for a land purchase.

Government may approve a land purchase with conditions, including:

That land not be subdivided except for:

• agricultural, forestry or fisheries production;
• a conservation use pursuant to a designation as a natural area, archaeological site or heritage place;
• a parks use by Federal, provincial or municipal government;
• a residential use by the owner.
• That land be identified for non-development use under the land identification program.
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• That land be consolidated with adjoining parcel(s) of land.
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• That the applicant becomes a resident within a specified time period.
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• That a buffer be provided and maintained.
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• That land be managed in a specified manner.

Applications have been denied for the following reasons:

• Aggregate land holdings were beyond the limits set out in the Act;
• Land holdings of a person or corporation in a particular area of the province were at a level beyond what was believed to be in the public interest;
• Land flipping and speculation appeared to motivate the transaction;
• The purchase would have resulted in the control of the majority of the shore frontage of a local pond being held by a non-resident person;
• Government wanted to provide opportunity to local residents/farmers to purchase the land;
• A significant proportion of land or shore frontage in a local area was already controlled by non-residents; and
• An intention to circumvent the land identification program appeared to motivate the transaction.

Generally 3-4 weeks is required from the date an application is filed to the date a decision is rendered. However, depending on the complexity of the application, additional time may be required.

The Order confirming Government’s decision is usually issued within one week to 10 days of the date of the decision and should be registered with the deed.

Please see the Application Review Process at the end of this publication.

An application for a land purchase must include the following:

• a completed application form;
• an orthophoto or GeoLinc map of the parcel(s) outlined in red;
• a legal description of the subject parcel;
• if the applicant is a non-resident person or corporation, details of recent advertising of the land on the local real estate market (for more information click here); and
• a fee of $500 or 1% of the agreed purchase price, whichever is greater [for all applications by non-resident corporations or corporations where the majority of voting shares are owned by non-resident(s), and most non-residents] (for more information click here).

The completed application is submitted to the Island Regulatory and Appeals Commission.

When an application is denied or is approved but no part of the purchase has been or will be completed, the Commission may refund up to 50% of the application fee upon application. An application must be made to the Commission within six months of the date of the decision and must include a statutory declaration stating the grounds for the refund; and the original Order that granted or denied permission to acquire the land.

A person having an aggregate land holding in excess of 750 acres or a corporation having an aggregate land holding in excess of 2,250 acres is required to file an annual land holding disclosure statement with the Commission.

Pursuant to subsection 15(1) of the Act, the Commission may request information and conduct an investigation for the purpose of determining whether a person or corporation has contravened the Act or the regulations.

Further information can be obtained by contacting:
The Island Regulatory and Appeals Commission
Prince Edward Island
5th Floor, National Bank Tower
134 Kent Street, PO Box 577
Charlottetown PE, Canada C1A 7L1
Tel. (902) 892-3501 Fax (902) 566-4076

• Application is filed with Commission
• Commission reviews and makes recommendation
• Commission submits recommendation to Lieutenant Governor in Council
• Lieutenant Governor in Council reviews and makes final decision
• Lieutenant Governor in Council sends Order containing disposition of application to applicant or his/her representative
• Order is registered with the deed for the parcel