Recent Amendments to the PEI Lands Protection Act
What do the latest amendments to the LPA mean?
The amendments to the Prince Edward Island Lands Protection Act make the following key changes for non-residents:
- Introduce a new definition of municipal property. A municipal property is defined as a property that is (i) one acre or less in size and (ii) located in an area with an official plan.
- Introduces new requirements for non-residents when purchasing or acquiring an interest in municipal property.
- A non-resident may acquire an interest in one (1) municipal property without making an application to the Commission; however, if a non-resident intends to purchase or acquire an interest in a second or more municipal property, the non-resident must first receive approval from Executive Council to do so. In other words, the first acquisition of a municipal property does not require an application to the Commission, however all subsequent acquisitions of municipal property requires an application to the Commission.
- All other existing land ownership limits and rules for non-residents under the LPA remain unchanged.
What does it mean to acquire an interest in a property?
A non-resident person would acquire an interest in a municipal property by purchasing a property in their own name, or by being a shareholder in a corporation which purchases a municipal property. Please contact the Land Division at IRAC if you have questions specific to a non-resident acquiring an interest in a piece of land.
When will the changes come into effect?
The LPA amendments have not yet been proclaimed therefore are not yet in force. Once a proclamation date has been set, the Commission’s website will be updated to indicate the date the amendments will come into force.
Does this impact non-residents that already own or hold an interest in more than one “municipal property” in PEI?
If a non-resident person currently holds an interest in more than one municipal property, they are considered to be in compliance and do not have to take any action as the changes are not retro-active. Once the amendments come into effect, if a non-resident wishes to buy or hold an interest in an additional municipal property, they must file an application with IRAC.
Do land ownership limits and other rules under the PEI Lands Protection Act still apply?
Yes.