FAQ Buying and Selling Municipal Land

Can municipalities on PEI buy land?

Yes, municipalities can purchase land. To meet legislative acts and regulations keep the following in mind:

• The purchase is listed in the municipality’s budget, (MGA s.150)
• The purchase is approved by council, (MGA s.123 “The powers of a council shall only…by either bylaw or resolution.)
• Municipalities can’t project a deficit, (MGA s.153)
• The municipality isn’t over in its borrowing limits, (Restrictions on borrowing MGA s.164-170.)

No councillor votes while in a position of a conflict of interest on the purchase of land. (MGA Division 4)

Can municipalities sell, lease or gift municipal land?

Yes.  If the municipality owns land and decides it is in the best interest of the municipality, they can sell, lease or gift municipal land.   
To meet legislative acts and regulations keep the following in mind:

• The municipality owns the land free and clear with a deed. Property Tax Division
• The land and sale follow the Planning Act, Municipal Government Act and their regulations, in addition to any other provincial legislative acts and the Municipality’s Official Plan and bylaws.
• A bylaw is required to sell, lease or gift municipal land.  (MGA s.124, s.143, and s.158)
  • Resource - Grants bylaw template

Can the municipality sell, grant, transfer or otherwise dispose of municipal land below fair market value? 

Yes.  The municipality must follow the process outlined in MGA s.143 and the General Regulations s. 2 and any municipality’s bylaws (procurement, grants, etc.) in selling land below market value, not assessed value. The land may need to be appraised.

What is the process to sell, grant, transfer municipal land below fair market value?

1. CAO or Council presents the proposal to council for decision via resolution.
2. Check municipality owns the land, create a proposal that includes:
   • A description of the municipal land,
   • Who is acquiring the land, 
   • Any conditions of the sale (term, fair market value of the land)
   • What if anything the municipality receives
3. Notice - must be posted in a local newspaper circulated in the municipality at least 14 days prior to the proposed disposition and electronically (until the day of the sale). The proposal contents will be in the notices. 
4. Public Meeting - The council meeting is a public meeting and the vote is public.