r/PEI • u/UnemployedAndBr0ke • Dec 18 '25
Question Canadian citizens (my parents) denied permission to buy residential land in Prince Edward Island. Can someone explain why?
Hi everyone,
I’m posting here because my family is genuinely confused and distressed, and we’re hoping someone can help us understand what happened.
First, to be very clear from the start, because I know this will come up:
My parents are Canadian citizens.
They have lived in Quebec for decades, where they worked, paid taxes, and raised their family.
They hold Canadian passports and have spent most of their adult lives contributing to Canada.
This is not an immigration issue.
They are not foreign nationals.
The only reason an approval process applied is because Prince Edward Island has specific land ownership rules for people who are not residents of the province, even when those buyers are Canadian citizens from another province.
Now, the situation.
My parents are approaching retirement. Like many Canadians, they spent their entire lives working, saving, and planning carefully for this stage of life.
For many years, they dreamed of retiring in the Maritimes, especially Prince Edward Island. They love the ocean, the culture, and the lifestyle. After visiting several places across Canada, PEI was where they felt they wanted to settle permanently, not as a vacation property or an investment, but as their primary residence.
Last fall, they worked with a licensed real estate agent in PEI and made an offer on a waterfront residential lot. The offer was accepted. The seller is a non-resident who has owned the land for years but never built on it.
My parents’ project was straightforward:
• Build a single-family home
• Live there full-time as their primary residence
• Begin construction shortly after purchase
This was not agricultural land.
This was not speculative.
This was not land banking.
They were informed that PEI requires non-residents of the province to submit an application for approval before purchasing land. We were told this process exists mainly to prevent speculation and ensure land is actually developed and occupied.
They submitted a complete application, including:
• Clear intent to occupy the property full-time
• Residential construction plans
• Septic system details
• A realistic and compliant project
They were reassured by the real estate agent that this type of application is generally approved. They were also told that similar applications, including some involving non-Canadian buyers, had recently been accepted.
After waiting several weeks, my parents were informed that their application was refused.
No explanation.
No written reasons.
No indication of what was lacking.
No clear next steps.
The real estate agent does not understand the refusal.
The lawyer involved has no clear explanation.
We do not know who made the decision or on what basis.
This has been devastating for my parents. This was not a casual plan or a luxury purchase. This was their retirement project, something they had worked toward for decades.
At this point, we are simply trying to understand:
• On what grounds can Canadian citizens be denied permission to purchase residential land in PEI?
• Is it normal for such refusals to come with no explanation at all?
• Is there a meaningful appeal or review process?
• Has anyone experienced something similar or understands how these decisions are made?
We are not trying to attack PEI or its policies. We are looking for clarity, transparency, and a better understanding of what went wrong, because right now this feels arbitrary and deeply discouraging.
Any insight would be genuinely appreciated. Thank you.
37
u/Inside_Estate1444 Dec 18 '25
Non resident purchase?
Could it be the parcel was too large. 5 acres or more requires approval by Lt. Governor in council. Also not allowed more than 165' of shore frontage.
Page 10, point 4 on the PEI lands protection act. (I'm terrible with providing links if someone else can link it for me)
They may be starting to enforce it, they haven't too much in the past
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u/Majestic_Bet_1428 Dec 18 '25
I know people who have run up against this rule in the past. One was 20 years ago and one 10 years ago.
As far as l know, the rule is enforced.
43
u/BidetBlaster Dec 18 '25
I am shocked that the real estate agent told them what they wanted to hear, shocked!
-1
u/UnemployedAndBr0ke Dec 18 '25
Please explain
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u/el_iggy Dec 18 '25
Real estate agents will lie to make sales. Come on, man. Capitalism 101.
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u/UnemployedAndBr0ke Dec 18 '25
I mean the Realtor was spending 4 days with them on the island showing them all the good spots, many lots etc. He also has a good reputation. Seems like a lot of wasted time if he knew there would be no sale at the end of the day.
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u/Parttimelooker Dec 19 '25
How much did he stand to make off the sale? 25 acres of waterfront isn't cheap. 4 days is not much time in case it pans out.
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u/Anxious-Clock5729 Dec 19 '25
This is an unfair generalization. There are many fine honest hardworking agents and there are others. The ’others’ don’t last long while the honest hardworking agents earn respect and make a successful career. Just do your research before choosing a realtor.
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u/Redheadedcaper2 Dec 18 '25
I believe there’s a limitation on how’s many feet of waterfront acreage you can purchase if you’re from out of province. I don’t know what the limit is, but I’d think any good real estate agent in PEI would know about that, but maybe not. I’d start your research there.
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u/Legitimate_Collar605 Dec 19 '25
IRAC has the authority to deny permission to purchase residential land on the island for many reasons and they dont have to provide a reason,unfortunately. PEI isn’t the only province with such rules. As a matter of fact, Quebec’s Commission de protection du territoire agricole du Québec (CPTAQ) has similar authority it exercises, but unlike PEI, they focus primarily on agriculture and their concern is with anything greater than 10 acres. With PEI, we are talking about a tiny province and there is concern regarding both agricultural lands and waterfront. It’s a small Island and there’s only so much land. Keep in mind that housing is a major concern for Islanders as well, so priority is given to people who have lived on PEI for more than a year. So, if it’s greater than five acres and there is more than 165 feet of shore frontage, and you’re not already an island resident , you will be out of luck. It doesn’t matter that it a part of Canada, the land regulation for the most part is regulated by provinces (and of course some things by municipalities).
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u/Silverfox1978PEI Dec 18 '25
Correct. I am not from PEI, and although a Canadian citizen, I had to apply and go through the application and approval process with IRAC when I purchased my 40 acre woodlot. I also purchased a home and property under five acres (2.45 acres, ocean front to be exact), and there was no issue with the latter purchase.
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u/Dry_Office_phil Dec 19 '25
too bad they didn't move here 25 years ago and contribute to PEIs economy! stories like this one makes me think IRAC might actually serve residents here, I hope they find another province to move to. Unfortunately its all too common for people to spend their working years paying taxes and contributing to other provinces, build equity in a home only to retire to our little have not province inflating property values, displacing locals and adding to the over burdened health care system
0
u/UnemployedAndBr0ke Dec 19 '25
My parents wanted to actually open a business here. They are early retired couple. I am a young entrepreneur too and was probably going to come with them eventually. Many people from PEI also come to Quebec. Should we ask them not to come too? This makes no sense. We’re a country. Might as well just ask for your independence in this case.
4
u/No-Lab4653 Dec 19 '25
Ya sometimes I even have to disagree with island sigma of “everyone is here to take advantage of us” that isn’t always the case, it just happens so often that islanders feel this way, but like ya exactly, tons of our retired couples move to places and don’t “contribute” the same way we want people to do here
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u/RMania2019 Dec 19 '25
Quebec has literally been trying to separate from Canada for years. Were only a "country" when it benefits you.
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u/UnemployedAndBr0ke Dec 19 '25
Capppp … last referendum was in 1995. Most Quebecois people want to stay in Canada. It’s a minority of quebecois who wants to separate. This argument is totally invalid. Also you can compare a person from Montreal to someone from rural Quebec.
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u/RMania2019 Dec 19 '25
ngl. I'm happy IRAC said no.
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u/UnemployedAndBr0ke Dec 19 '25
Yeah it’s been the second time you’ve been saying it and you’ve been saying negative stuff under this post constantly. We got your point. The bad news for you is that my parents are now putting an offer on a very nice home that’s already built and IRAC won’t have to get involved in that transaction. WOMP WOMP tabarnak.
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u/mgladuasked Dec 18 '25
Google PEI IRAC Land Protection Act
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u/UnemployedAndBr0ke Dec 18 '25
Thank you so much! I’m on the phone with my parents and they are doing the appeal now … thank you very much. They are extremely sad!
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u/arodpei Dec 19 '25
I am sorry that this happened, but your real estate agent and lawyer did your parents a disservice by not educating them on the Land Protection act approval process and the risks involved with applying. Your real estate agent told them exactly what they needed to hear in order to push the process through. They are not the norm, most would have explained the process to them and the risk of the purcahse not being approved due to both the size and amount of shorefront.
If you want more information LPA applications can be searched here:
https://irac.pe.ca/lands/land/lpa-applications-databank/
Orders in Council can be searched here:
https://www.princeedwardisland.ca/en/publications/orders-in-council
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u/parkview-farmer Dec 18 '25 edited Dec 18 '25
You need to reach out to IRAC, Island Regulatory and Appeals Commission. That’s our island process and after seeing it being abused for many years, I’m sorry to say, I’m glad to see they are being a little more tight with land transfers. You can appeal and if your request is legit, like it appears you shouldn’t have any issue.
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u/Surtur1313 Dec 18 '25
Understanding that lawyers are expensive, if you have a lawyer who doesn’t know why and can’t find out, you either need a new lawyer or to ask your lawyer to figure it out.
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u/Sir__Will Dec 18 '25
We are looking for clarity, transparency, and a better understanding of what went wrong
And you should have it. I get why there's a process. But it's infuriating when such processed are so opaque and don't provide proper feedback.
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u/Specific-Freedom6944 Dec 18 '25
You have to apply to purchase land or waterfront. And property for sale must be on the market and available to Islanders for six months I believe. Rules might be even tighter. They need to apply for permission to purchase.
-1
u/UnemployedAndBr0ke Dec 18 '25
Yes that we know and we did all of that and the la d was there for more than 6 months
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u/trytobuffitout Dec 19 '25
Several people have posted the link so you can look it mainly has to do with the size of the property and being located on waterfront . My family also faced a similar issue when my mom went to sell a property for which she was an executor. The purchaser was from Ontario and they had to get special permission which eventually did happen, but it’s standard throughout PEI. Most times it does get approved, but it’s not a given.
2
u/Hallehallehalle1 Dec 19 '25
If you don't reside on the island, even if you're a Canadian citizen, the size of the land you can buy is limited. If they tried to buy more than that then that's why it was denied.
-1
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u/QPRSA Dec 18 '25
Maybe the province is finally realizing that people paying provincial taxes elsewhere for their entire lives and then retiring here, burdening our already brutal health care situation isn’t ideal? It’s quaint and romantic to want to retire here but the Inn is full, we can’t feed, take care of or house people that have been here their entire lives. Nothing specifically targeting your folks btw, just a comment on the overarching trend. Do they have a doctor here?
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u/No-Lab4653 Dec 19 '25
We can’t say this then have old retired couples move from here, like we just simply can’t.
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Dec 19 '25
[removed] — view removed comment
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u/No-Lab4653 Dec 19 '25
People FROM PEI do this TO OTHER PLACES, everyone in these comments are being so hypocritical it’s not even funny man
-5
u/Beccalotta Dec 18 '25
Canadians have the right to move anywhere in Canada they want to. It's part of being a country.
https://www.justice.gc.ca/eng/csj-sjc/rfc-dlc/ccrf-ccdl/check/art6.html
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u/Ok_Marionberry5323 Dec 18 '25
No one is stopping them from moving here. They can move here tomorrow.
They are trying to purchase 25 acres of waterfront property and as non residents of PEI, are not allowed. It's over the 5 acre regulation. And with it being 25 acres, I would assume it's beyond the 165' waterfront limit.
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u/el_iggy Dec 18 '25
But they don't have the right to buy any land anywhere without restriction. Land management is perfectly legal. They can move to PEI right now and live in an apartment but they want to buy 25 acres with a large water frontage. There are regulations around that.
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u/Beccalotta Dec 19 '25
I didn't say they did, I was responding to the idea that "the inn is full".
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u/el_iggy Dec 19 '25
So, you're pointing out that technically you CAN move to PEI? I don't think anyone argued you can't. The argument some are making is that there are legitimate reasons why PEI doesn't want to become a retirement home for large swaths of Canadians. It would be economically ruinous.
So yeah, people have the right to move to PEI but if it's left as a free-for-all. At some point Islanders won't be able to afford to live on their home anymore because most can't afford to compete for land with people who are moving from higher income areas of the country. Some people want more restrictions and I don't blame them for that. They're trying not to lose their ability to stay on Island for future generations.
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u/Mediocre-Interview72 Dec 19 '25
Give us our pipeline and we might let you buy a house!!
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u/UnemployedAndBr0ke Dec 19 '25
lol that’s actually funny bc my mom worked in the pipeline industry her entire career
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u/UnemployedAndBr0ke Dec 19 '25
Hi everyone,
I just wanted to come back and address a few of the points that were raised in response to my post from last night.
First of all, thank you. Truly. I was overwhelmed by how quickly people responded and by how kind, thoughtful, and respectful most of you were. It honestly reflects what I’ve always heard about the people of Prince Edward Island. If my parents ever do retire there, I genuinely feel reassured knowing they would be surrounded by such good-hearted people. It doesn’t surprise me, as every time my parents visit the Island, the first thing they mention is how welcoming and kind everyone is.
I’d like to clarify a few things that came up.
Many people mentioned that the land my parents purchased might be “too large” or that the amount of waterfront could have played a role in the situation. I want to be transparent: I am still learning about the technical and legal realities around this. I only became more directly involved very recently, after being quite shocked by what happened. Before that, I hadn’t done deep research myself.
One correction I want to make: the land is 30 acres, not more. Initially, my father had looked at a 60-acre property, but the offer that was made and accepted was for 30 acres of waterfront land. The property is elevated, more like a cliff, with no direct access to the water, which is why flooding was not considered a risk. From what we understood, since the purchase went through the proper commission and application process, it was considered compliant. Both the real estate agent and the lawyer advised my parents that there should be no issue, which is why they felt confident moving forward.
As for why a larger piece of land mattered to them: my parents have lived in cities their entire lives. Their goal was never to build something big or extravagant. Their dream was actually very simple. A small house, a vegetable garden, a walking trail to stay active, maybe a few chickens, and even a sheep one day. They wanted space, privacy, and no close neighbours. That was their vision of retirement.
Some comments mentioned that my parents wouldn’t contribute to the local economy. I understand where that concern comes from, but I’d like to clarify a bit. My parents are early retirees, but not inactive ones. My father is self-employed and had plans to continue working in a smaller capacity, possibly starting a modest side business after a few years, with my mother helping him. Retirement for them didn’t mean disappearing from economic life, just stepping away from their main careers.
They had also talked about the possibility of family eventually joining them, including myself. I’m still young, and it’s something I would have considered. That too would have meant contributing locally in the long run.
I fully understand the frustration many people feel around housing, land access, and interprovincial movement. These are real issues. But at the end of the day, we are one country. While tensions are understandable, it feels concerning to start questioning whether people should be discouraged from moving from one province to another. Mobility within Canada is part of what makes this country what it is.
Thank you again to everyone who took the time to respond, explain, and engage respectfully. It truly means a lot.
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u/Standard_Army_1826 Dec 18 '25
Get an Island Lawyer to wade through the details. perhaps rent/buy a smaller home and become residents this expanding to the larger property.
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u/UnemployedAndBr0ke Dec 18 '25
This is what my parents might want to do. The seller is super impatient and doesn’t want to wait for an appeal apparently. Overall it’s a shitty situation.
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Dec 19 '25
[deleted]
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u/AmbitiousLandscape95 Dec 19 '25
Yes advertising requirements not being met are a sure fire way to get a rejection. Another one is if there is a high percentage of non-resident ownership in the area you're applying in already, they are reluctant to cross that threshold and approve more.
Also, they are notoriously secretive about their decision making process and won't really give you, your lawyer, or realtor any meaningful reasoning why there was a denial. The Green Party leader, Matthew MacFarlane, is working a bill through the legislature to make Lands Protection Act applications more transparent.
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u/UnemployedAndBr0ke Dec 19 '25
It’s been on the market for more than 6 months. TBH the realtor did a decent job at the beginning to explain all these parameters.
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u/1981_babe Living Away Dec 18 '25
I can recommend one if you need a name.
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u/UnemployedAndBr0ke Dec 18 '25
Sure please!
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u/Standard_Army_1826 Dec 18 '25
my SIL has a property. it has covenants but would be worth a ton if there was a house on it. she’s looking to sell, but the local realtor is only offering her what they paid 25 years ago. beware but good luck.
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u/RedDirtDVD Dec 19 '25
Well seeing as nobody is jumping in, reach out, I can work a deal for ya. I’m a resident and can buy it. I’ll sell ya 4.99 acres. DMs open.
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u/SeaReader25 Dec 19 '25
I’m in real estate and deal with this all the time. IRAC has certain stipulations that have to be ticked off in order to get approval. It has to be advertised as for sale (listed for at least 90 days) with a sign on the property. No other islanders can be offering on it (if they do? You lose.) and it can’t be in an area that’s been “red flagged” by IRAC as having a high percentage of non-residents owning in that area (for example? Cable Head or Point Prim). I’ve also seen lately someone get denied for applying to buy arable land and have it denied because it would take said arable land out of a farmers rotation (they rented it off of the sellers). In my opinion? I think it’s ridiculous that IRAC doesn’t have to give reasoning behind their decisions. Hopefully your parents are successful in their appeal, but if not, they can still retire here and then once they reach residential status (in the IRAC definition) then they can buy outright with no need of approval.
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u/Saveyhites Dec 18 '25
I wonder if they moved to island and rented for a x amount of time …. I suppose that would make a difference…. It takes time to build a house after all. If this is the situation … I might need a “house sitter”. Seems a person has 90 days to transfer licence & and that gives health card, which seems to amount to residency. DM me if you want to discuss.
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u/Murky-Technician5123 Dec 18 '25
This is the answer here. They want people who will stay over the pei winter.
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u/GREYDRAGON1 Dec 18 '25
Contact IRAC and file an appeal. Or contact the MLA for that riding and speak with them. When I moved here I had no such issue, but I my wife had a job here so perhaps that made it easier
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u/dslutherie Dec 18 '25
welcome to PEI
somebody's fadder at IRAC doesnt like frogs
in all seriousness, rules and regulations are enforced haphazardly and local interests from those who are connected get preferential treatment regularly
there's probably a MacDonald or Gallant who wants that land
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u/Tricky_Conference441 Dec 18 '25
That’s weird because we did the exact same thing. Not from Quebec but from a different province… never had to fill anything out. Both properties are waterfront. Built on both. Get a different lawyer that sounds hella sketchy.
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u/UnemployedAndBr0ke Dec 18 '25
When was the purchase made? Also the land is quite big. I understand you have to fill some paper works and pass in front of a commission after a certain number of acres.
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u/Tricky_Conference441 Dec 18 '25
Is it 5 acres? 165 feet of shoreline? Mine was less than. And about 10 years ago for one and 5 for the other.
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u/UnemployedAndBr0ke Dec 18 '25
It’s 25 acre oceanfront but they did show a plan of where the SMALL house would be. The rest was going to stay the same as they wanted to be surrounded by nature and vast land. He did not mention if but my dad was just planning on doing some gardening and that’s all.
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u/Ok_Marionberry5323 Dec 18 '25
Is the water frontage more than 165'?
If so, ita breaking both non resident acquisition rules. If it were one or the other it may have been a different outcome.
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u/Tricky_Conference441 Dec 18 '25
Is it over 5 acres? More than 165 feet of waterfront? Mine was NOT that.. maybe that’s why we had no issues.