Point Deroche sale did not violate lands act, allegations were irresponsible, minister says
CBC
P.E.I.'s Lands minister says the recent sale of two properties in Point Deroche did not violate the Lands Protection Act, but the province's Third Party disagrees with the legal opinion that was used.
The Greens called for an investigation into the sale last week after documents showed the owners of the smaller parcel of land — an Ontario family operating under a corporation called 251 Kelpie Lane Inc. — declared a mortgage interest in a larger adjacent property that also sold.
That means if the land's buyer, Tim Banks, didn't pay the agreed price of $2.3 million, the family could recover both pieces of land, including the larger parcel they never owned.
The Greens believed this gave the former owners a beneficial interest in the property, which should have been highlighted to cabinet. The party also argued it was a violation of the act due to the limits on how much property non-residents can own.
After the exchange in the legislature last week, Lands Minister Rob Lantz's department took the issue back to the Island Regulatory and Appeals Commission.
"IRAC informed my office that the Lands Protection Act has not been contravened in either of these cases," Lantz told the legislature on Tuesday.
"IRAC has indicated that they rely on precedent set from a P.E.I Court of Appeals decision circa 1987."
The minister went on to explain that IRAC's policy, which comes from this 1987 ruling, is that private mortgagees like 251 Kelpie Lane Inc. have no rights to the use, possession or occupation of a property over while it holds a mortgage.
If that were to change and there was a situation where they wanted to seize the assets, like if the buyer does not pay up, then the mortgagee could take possession of the land.
Lantz said that's when cabinet would need to approve the land transfer.
"There were accusations made in the House last week … It all caught me a little off guard, but I was fairly confident that was not the case," Lantz told CBC News after question period on Tuesday.
"A lot of Islanders care deeply about these land issues and to raise accusations like this with such certainty ... that there was a violation, I just felt was irresponsible.
"Having looked in to it, the facts just don't bare up."
But Green MLA Matt MacFarlane, who is a lawyer himself and raised the questions last week, disagrees with Lantz and said he's not satisfied with the response.
WARNING: This story details allegations of child abuse.
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