Option Agreement Stage

Subject to the Minister for Lands and Cabinet approving your Project Proposal, you will move into the Option Agreement Stage (Option), and an Option will be offered to you.

Prior to offering the Option, Department of Planning, Lands and Heritage (DPLH) will seek an indicative valuation from the Valuer-General for the current unimproved market for the rent for the long-term lease (or purchase price for freehold).  As a number of assumptions, conditions and limitations impact on this value, this indicative estimate of value will be subject to review as further information becomes available.

The Option is a deed between you and the State of Western Australia acting through the Minister for Lands (the Minister). The Option is not a grant of tenure but sets out conditions, all of which need to be met by you prior to a grant of tenure (i.e. the Development Lease). The Option will be granted under Section 88 of the Land Administration Act 1997 (LAA) for a period up to three years.

Dlan0001 595Pxlwx290Pxlh Application Stage02 Fitzory River on Gogo Station in the Kimberley region of Western Australia

Step 1

Meet the Option Agreement Conditions

Sign the Option Agreement

Once the Option has been signed by you and the Minister, a memorial will be placed on the land title to highlight that an Option has been granted,

The Option provides you with the opportunity to test and examine your proposal and determine whether:

  • Prerequisite conditions of the Option can be met
  • Your proposal will be feasible.

The draft lease documents will be attached to the Option.

During the Option stage you will need to obtain all necessary statutory approvals and undertake any investigations required such as geotechnical work.  This will help you confirm that you have the capability to move forward with your proposal and attract third party investors, if applicable.

If your Project Proposal relates to unallocated Crown land (UCL) or an unmanaged reserve, DPLH will also advise you if you need a licence under Section 91 of the LAA, subject to addressing native title.

DPLH has developed an overview document that provides you with an outline of what is likely be included in the Option. 

Negotiate and Register an Indigenous Land Use Agreement

If the change in land tenure is a future act, as defined under the NTA, an Indigenous Land Use Agreement (ILUA) will be required as a condition of the Option. 

You will be required to negotiate your own ILUA and you should have already been in contact with the Native Title Party when getting started with your Project Proposal.

The three-year term of the Option takes into consideration that an ILUA takes an average of 18 months to negotiate and its registration by the Native Title Registrar, a requirement under the NTA, takes up to six months.

The guide provided in Appendix G describes the requirements of the template ILUAs, including the mandatory provisions. DPLH will provide you with the Template ILUA at the appropriate time to help you prepare your ILUA.

Handy Hint

  • The ILUA must include a map and written description. The National Native Title Tribunal (NNTT) can assist with mapping services and provide other assistance such as negotiating the ILUA, or preparing materials for your Application for Registration if requested.
  • It is recommended that you seek a preliminary assessment of your ILUA by the NNTT to ensure it meets registration requirements.
Obtain a Survey

During the Option, and before a Development Lease can be issued in the Tenure Stage, a surveyed graphic/deposited plan is required that needs to:

  • Identify the area consistent with the registered ILUA map, and depicting any easements required.
  • Be prepared according to instructions issued by DPLH, and by a licensed surveyor with accreditation to lodge deposited plans at Landgate.
  • Be lodged at Landgate, and endorsed “In Order for Dealings” before the supporting documentation for the Development Lease can be registered.

Something to Remember

You will only be able to exercise the Option, and move to the Tenure Stage once you have satisfied all the Option conditions.

Notify DPLH that conditions have been met

As soon as all the conditions of the Option have been addressed you should advise DPLH, quoting the job number provided, and provide the required evidence as specified in your Option.

what happens next?

Once DPLH receives this advice it can take action so you can move to the Tenure Stage. This will include obtaining another valuation for the current unimproved market for the rent for the long-term lease (or purchase price for freehold). As more information can now be provided to the Valuer-General this will enable a more finite valuation before the Development Lease is issued.

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Page updated 10/08/2017

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