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Community Right to Bid

What is it

The Community Right to Bid gives local community groups the chance to 'nominate' an asset in their community which they consider has community value. If the nomination is successful the asset will be placed on a 'list of assets of community value' which we maintain online. The right was brought into force on 21 September 2012 and is part of the Localism Act 2011.

Assets are either land or buildings and can be listed if the main use of the asset helps the community's social well-being or cultural, sporting or recreational interests.

The scheme has two main parts first, nominating and listing assets and second, the moratorium (which describes a time period where the asset cannot be sold).

Nominating an asset

We cannot list an asset on our own initiative, so it must be nominated by the community. The voluntary or community groups which may make nominations are:

A nomination must include a description of the asset including its proposed boundaries, information about the freeholders, leaseholders, current occupants of the site and the reasons for nominating the asset.

We have 8 weeks to make a judgement about whether the asset meets the definition set out in the Act or it falls into one of the excluded categories. If the asset is properly nominated, is in our area, meets the definition and is not excluded, we must list it and inform all specified parties.

The asset will be removed from the list after 5 years.

Moratorium

Once an asset has been listed nothing more will happen until the owner decides to dispose of it. Unless an exemption applies, the owner will only be able to dispose of the asset after a period of 6 weeks has expired (this period is called a moratorium). This will allow a community group to make a written request to be treated as a potential bidder.

If a community group does make a request then the full 6 month moratorium will happen. In this period the owner may continue to market and negotiate sales but may not exchange contracts.

After the moratorium period the owner is free to sell to whoever they choose and at whatever price.

Documents

Useful links

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