People living in 12 homes built on contaminated land in Wolverhampton will be able to sell them back to the site's former owners at the market price.
Akzo Nobel will also remove chemicals found in gardens and in ground beneath the former Courtaulds' factory as part of a £2m deal with the city council.
Most of the 600 houses on the Farndale Estate, in Whitmore Reans, are not contaminated, the council said.
The council said the chemicals did not pose a health risk to residents.
Five council tenants whose homes lie on contaminated land will also be rehoused.
Investigations are still being carried out in one area of the estate and more properties may need to be purchased by the firm.
It follows an investigation of the land which began in 2005 after carbon disulphide - a fluid that is toxic in high doses - was found there.
Councillor Roger Lawrence said: "I believe this signals a fresh start for residents and the estate and means we're moving towards a conclusion of a difficult situation.
"Residents have shown great patience over the past months and have cooperated fully with the investigation."