On February 21, 2023, the Lieutenant Governor in Council approved a set of new regulations under the Real Estate Trading Act, R.S.P.E.I. 1988, Cap. R-2. These new regulations, which took effect on March 4, 2023 revoke and replace the former Real Estate Trading Act Regulations (EC516/68) and are intended to refine and modernize the procedures governing real estate trading in Prince Edward Island.

The regulations establish precise definitions for key terms, including “agent’s examination,” “salesperson’s examination,” and “provincial examination.” Specifically, an “agent’s license” is issued pursuant to Section 8 of the Act, while a “salesperson’s license” is issued under Section 5.

The regulations mandate that agents must secure a bond of $5,000, and salespersons must maintain a $2,000 bond. This bond must be a surety bond issued by an insurer licensed in Prince Edward Island.

The Registrar is empowered to investigate real estate businesses if there is reasonable suspicion of regulatory breaches or criminal activity. The Registrar possesses investigative powers akin to those of a Commission under the Public Inquiries Act, including the authority to take sworn evidence.

To obtain a salesperson’s license, applicants must complete a pre-licensing course and pass the associated examination. Similarly, prospective agents are required to complete a designated course and pass the agent’s examination. For individuals licensed in other Canadian jurisdictions, passing a provincial examination is necessary to qualify for a license in PEI.

Both salesperson and agent licenses can be renewed provided applications are submitted prior to or on the license’s expiry date. Extensions may be granted in exceptional cases, such as illness or other significant reasons. Late renewal applications may be extended by the Registrar for up to two years.

These changes are aimed at enhancing the clarity, efficiency, and contemporary relevance of the real estate trading framework in Prince Edward Island.

Prince Edward Island EC2023-155, March 4, 2023.