Thursday, September 02, 2010
The
Frequently Asked
Questions
Including
Information on Non-Resident
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.
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. 5. What
Factors Does the Commission Consider?
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
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.
That land not be
subdivided except for:
That land be identified
for non-development use under the
land
identification program.
That land be consolidated
with adjoining parcel(s) of land.
That the applicant becomes
a resident within a specified time period.
That a buffer be provided
and maintained.
That land be managed in a
specified manner. 9.
For What Reasons Have Applications Been Denied?
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.
A person or
corporation can hold an aggregate land holding of no more than:
1,000 acres for a person;
and
3,000 acres for a
corporation
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.
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 $550 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.
Further
information can be obtained by contacting:
The
Application Review Process
Application is filed with Commission
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The
information contained in this publication is intended as a guide
Initially Published:
1997-08-25
Last Reviewed or Updated:
2010-07-27
Prince Edward Island
Lands Protection Act
& Corporate Applications
for Land Acquisition in
Prince Edward Island
1.
Why is there a Lands Protection Act?
2.
What is an Aggregate Land Holding?
A person’s aggregate land holding consists of:
3.
What is the Commission's Role?
4.
What is Government's (Lieutenant Governor in Council's) role?
-
6.Who Must Make an Application?
A non-resident person or corporation, or a resident
corporation must make application if the person or corporation
will have an aggregate land holding
7.
What Could Happen to My Application?
8.
Under What Conditions Can an Application be Approved?
- 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.
Applications
have been denied for the following reasons:
10. What is the Maximum Amount of Land that a Person or
Corporation Can Hold in Prince Edward Island?
11. How Long Does it Take
to Process an Application?
12. What is Required in
Making an Application?
An
application for a land purchase must include the following:
13. Is the Application Fee
Refundable?
14. Does the Commission
Monitor My Land Holdings?
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.
15.
How is the Act Enforced?
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.
14. Questions?
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
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
and not as a legal reference. The
PEI Lands Protection Act
should be consulted for an exact statement of law.
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