First Right of Refusal


The First Right of Refusal (FROR) process allows former owners of separately titled Mr Fluffy houses to return to – and rebuild on – their remediated block. This option provides them with the opportunity to purchase back the remediated block in an off-market transaction.

Benefits for First Right Holders

First Right Holders do not need to compete at public auction to buy back their block. This is a significant purchasing advantage as remediated blocks that go to public auction will not sell for less than the valuation price offered to the former owners.

Eligibility

Eligible homeowners become First Right Holders if they:

Eligible homeowners will be required to surrender the Crown Lease for the affected block before entering into a contract for sale for the remediated block.

Find out more in:

Valuations

The sale price for a remediated block is determined by the Suburban Land Agency (SLA) based on independent market valuations conducted through independent property valuers. The SLA seeks two independent valuations to inform the market value of remediated blocks. In most cases, the selling price is no less than the highest of the valuations.

Valuers use a direct comparison method that considers location, elevation, block shape, and recent sale prices for similar blocks in the suburb and surrounding areas. Valuations are valid for six months.

Find out more about Valuing and selling remediated blocks (530.2 KB).

Offer process

1. Assess eligibility and consider conditions
2. Consider Demolition Schedule and when your block is likely to be available
  • Am I eligible?
  • Do I agree to the repurchase conditions?
  • Does the timing of demolition and block availability work for me?
3. Block assessment
4. Purchase price determined
5. Consider offer to purchase
6. Confirm improvements
  • Do I accept the purchase price?
  • Do I accept which improvements can be kept?
  • Do I accept the warranties & liabilities for the improvements?
  • Do I want to proceed with repurchase?
7. Contract for sale
Exchange – Within 60 working days of issue, exchange contracts and pay deposit.
8. Repurchase
9. Rebuild

When the Taskforce receives the independent valuations, a letter of offer is sent to the First Right Holder who has 30 working days to respond, advising whether they wish to purchase their remediated block.

If the First Right Holder chooses to:

First Right of Refusal for owner occupation

At the time of entering into a Contract for Sale of the remediated block, the First Right Holder will be required to sign a statutory declaration confirming they will:

Support

It is a significant decision to repurchase a remediated block and to rebuild your home.

Homeowners should:

The ACT Government's Land Rent Scheme is open to eligible First Right Holders. The scheme gives people the option of renting land through a land rent lease rather than purchasing the land to build a home. It is not available for blocks sold on the open market.

More information

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