In this paper we present a novel approach for removing residual overlaps among blocks. We start out by representing the placement in the sequence pair form and describe transformations to the sequence pair to make the placement feasible. This is followed by a distance-based slack allocation to generate a new placement with no overlaps, while being as close to the original placement as possible. Our results demonstrate the efficacy of our approach in transforming layouts with overlaps to overlap-free layouts with minimal object movement.