Absentee Landlord - Absentee Landlords in Prince Edward Island

Absentee Landlords in Prince Edward Island

An Absentee landlord crisis was a key factor in Prince Edward Island's decision to become a part of Canada when the idea of Confederation was proposed in 1867. In the mid-1760s, a survey team divided the Island into 67 lots. On July 1, 1767, these properties were allocated to supporters of King George III by means of a lottery. Ownership of the land remained in the hands of landlords in England, angering Island settlers who were unable to gain title to land on which they worked and lived. Significant rent charges (to absentee land lords) created further anger. The land had been given to the absentee landlords with a number of conditions attached regarding upkeep and settlement terms; many of these conditions were not satisfied. Islanders spent decades trying to convince the Crown to confiscate the lots, however the descendants of the original owners were generally well connected to the British government and refused to give up the land.

In 1853, the Island government passed the Land Purchase Act which empowered them to purchase lands from those owners who were willing to sell, and then resell the land to settlers for low prices. This scheme collapsed when the Island ran short of money to continue with the purchases. Many of these lands also were fertile, and were some of the key factors to sustaining Prince Edward Island's economy.

In 1864, the Island government saw union with Canada as a possible solution to the landlord crisis. This followed a rent strike and riots on the Island. At the Charlottetown Conference, delegates proposed a fund to purchase landlords' holdings if the Island joined Confederation. Several weeks later at the Quebec Conference this offer was withdrawn. The Island resolved not to enter Confederation as a result. The government refused offers from the other provinces and finally relented in 1873 after the local economy was pushed near to collapse. Under the terms of union, Canada agreed to provide the Island with an $800 000 fund to purchase the remaining absentee holdings. in 1875, the Land Purchase Act was enacted to force owners of the large estates to sell their holdings to the provincial government.

The Island's experience with absentee landlords affects its land ownership laws to this day. Non-residents are not permitted to purchase land in excess of two hectares without approval from the cabinet. In 2009 an American was fined $29,000 for contravening these laws.