First Right of Refusal - Loose Fill Asbestos Coordination

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 before it is offered to other ACT Government agencies or to the general public through a competitive process.

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 under the buyback program become First Right Holders if they:

entered the buyback program for affected or impacted properties
are eligible to receive a FROR under the buyback program (FROR is not available in relation to an affected or impacted unit in a Units Plan)
elected to receive a FROR in their Deed of Surrender
surrendered the Crown Lease on their affected block in accordance with the Deed of Surrender

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.

Where a First Right Holder does not exercise their First Right of Refusal, they should inform the Loose Fill Asbestos Coordination Team (Coordination team) of this decision in writing by completing the Waiver of First Right of Refusal form provided by the Response team.

Find out more in Exercising your First Right of Refusal Guidelines (337.0 KB)

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 remediated blocks.

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 30 working days of issue, exchange contracts and pay deposit.

8. Repurchase

9. Rebuild

When the Coordination Team 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:

purchase the block – the Coordination Team prepares a contract of sale, with 30 working days from issue to exchange or
not purchase block – the remediated block is offered to government agencies or offered to the public through a competitive process

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:

upon becoming the registered Crown Lessee of the remediated block, construct at least one residential dwelling on it in accordance with the purpose clause in the Crown Lease
occupy at least one residential dwelling on the remediated block as their primary residence for at least six months following the issue of a Certificate of Occupancy for the remediated block
not sell or otherwise dispose of their interest in the occupied residential dwelling until they have occupied it as their primary residence for at least six months following the issue of a Certificate of Occupancy

Support

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

Homeowners should:

discuss options with close family and friends
access an independent solicitor
engage a financial advisor
discuss plans with a bank or financial institution

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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