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When reviewing a property title, you may notice a reference to Section 72 of the Building Act 2004, or in some cases, its predecessor under the Building Act 1991. While it can look like a routine technical notation, a Section 72 notice is anything but minor. It signals that the land is affected by a known natural hazard and can have far-reaching consequences for property owners, buyers, developers, lenders, and insurers alike. Understanding what it means and why it matters is essential before buying, building, or developing affected land.
Where land is subject to a natural hazard (such as slippage, subsidence, erosion, or flooding) and Council is satisfied that any works won’t worsen the hazard, they may issue a building consent on the condition that a s 72 notice is registered on the title.
By registering the s 72 notice, the Council limits its liability for any future damage caused by the identified hazard. This protection is set out in Section 392 of the Building Act 2004. For example, if Council grants a building consent with slippage as an identified hazard, and part of the property is destroyed or damaged as a result of slippage, you’re highly unlikely to have any recourse against Council if they've registered a s 72 notice on your title.
A section 72 notice is a red flag to anyone dealing with the property, buyers, lenders, or insurers, that the land is at risk. You might be comfortable living with the risk, but if you need lending to purchase and/or are seeking to insure the property, insurance will be costly (if obtainable), and when it comes time to sell, any purchaser will need to weigh up the same risks.
Some insurers may refuse to insure the property or impose special conditions. Others may require engineering reports before offering cover. Because you'll need insurance to get a loan, you'll need to give yourself time before the offer is unconditional to ensure you can get insurance that's within your budget.
The Earthquake Commission (EQC), now known as Toka Tū Ake) provides capped cover for damage caused by certain natural disasters. Importantly, an s 72 may result in the EQC denying, in part or in full, a claim for damage to the property.
It is possible to remove a s 72 notice, but generally this won't be easy or cheap. Council will only do this if satisfied that the hazard is properly mitigated. This usually requires specialist reports, council approval, and undertaking remedial works to alleviate the risk.
Consider whether you are comfortable owning land with a known hazard. The purpose of the notice is to act as a warning based on what the Council knows about the property. Beyond just the financial considerations (i.e., impact on resale value or insurance costs), you'll need to be comfortable living in a house that is subject to an identified hazard.
You need to tell your insurer and get their approval straight away. If you don’t, your insurer may decline to pay out if you make a claim.
If there is a risk of the Auckland Council imposing a s 72 certificate as part of your development, seek planning advice from Civil Plan as to any alternatives (i.e., amending your plans to better mitigate the hazard) to avoid the Council imposing the s 72 certificate.
Plan Change 120 (PC120) and Section 72 notices operate under different legislation, but they can intersect in practice.
PC120 is a planning tool under the Resource Management framework that affects how and where development can occur, particularly in flood-prone or hazard-affected areas. As part of the PC120 process, councils often require more detailed assessments of flooding, stability, and other natural hazards.
If a natural hazard cannot be fully avoided or mitigated through design, Council may still grant consent but impose a Section 72 notice under the Building Act. This limits Council’s liability and alerts future owners, lenders, and insurers to the presence of the hazard.
In short, PC120 does not create Section 72 notices, but developments affected by PC120 controls may face an increased risk of a Section 72 being imposed if hazards remain.
Whether you’re purchasing a home, bare land, or an investment property, it’s vital to understand what’s registered on the title and how it affects your plans. From Building Act notices to zoning and natural hazard overlays, these issues can significantly impact insurance, finance, and future development. Our property team can guide you through the legal implications, while the experts at CivilPlan can provide specialist advice on planning, engineering, and consent requirements. Contact us today to make sure your next property decision is fully informed.
When reviewing a property title, you may notice a reference to Section 72 of the Building Act 2004, or in some cases, its predecessor under the Building Act 1991. While it can look like a routine technical notation, a Section 72 notice is anything but minor. It signals that the land is affected by a known natural hazard and can have far-reaching consequences for property owners, buyers, developers, lenders, and insurers alike. Understanding what it means and why it matters is essential before buying, building, or developing affected land.
Where land is subject to a natural hazard (such as slippage, subsidence, erosion, or flooding) and Council is satisfied that any works won’t worsen the hazard, they may issue a building consent on the condition that a s 72 notice is registered on the title.
By registering the s 72 notice, the Council limits its liability for any future damage caused by the identified hazard. This protection is set out in Section 392 of the Building Act 2004. For example, if Council grants a building consent with slippage as an identified hazard, and part of the property is destroyed or damaged as a result of slippage, you’re highly unlikely to have any recourse against Council if they've registered a s 72 notice on your title.
A section 72 notice is a red flag to anyone dealing with the property, buyers, lenders, or insurers, that the land is at risk. You might be comfortable living with the risk, but if you need lending to purchase and/or are seeking to insure the property, insurance will be costly (if obtainable), and when it comes time to sell, any purchaser will need to weigh up the same risks.
Some insurers may refuse to insure the property or impose special conditions. Others may require engineering reports before offering cover. Because you'll need insurance to get a loan, you'll need to give yourself time before the offer is unconditional to ensure you can get insurance that's within your budget.
The Earthquake Commission (EQC), now known as Toka Tū Ake) provides capped cover for damage caused by certain natural disasters. Importantly, an s 72 may result in the EQC denying, in part or in full, a claim for damage to the property.
It is possible to remove a s 72 notice, but generally this won't be easy or cheap. Council will only do this if satisfied that the hazard is properly mitigated. This usually requires specialist reports, council approval, and undertaking remedial works to alleviate the risk.
Consider whether you are comfortable owning land with a known hazard. The purpose of the notice is to act as a warning based on what the Council knows about the property. Beyond just the financial considerations (i.e., impact on resale value or insurance costs), you'll need to be comfortable living in a house that is subject to an identified hazard.
You need to tell your insurer and get their approval straight away. If you don’t, your insurer may decline to pay out if you make a claim.
If there is a risk of the Auckland Council imposing a s 72 certificate as part of your development, seek planning advice from Civil Plan as to any alternatives (i.e., amending your plans to better mitigate the hazard) to avoid the Council imposing the s 72 certificate.
Plan Change 120 (PC120) and Section 72 notices operate under different legislation, but they can intersect in practice.
PC120 is a planning tool under the Resource Management framework that affects how and where development can occur, particularly in flood-prone or hazard-affected areas. As part of the PC120 process, councils often require more detailed assessments of flooding, stability, and other natural hazards.
If a natural hazard cannot be fully avoided or mitigated through design, Council may still grant consent but impose a Section 72 notice under the Building Act. This limits Council’s liability and alerts future owners, lenders, and insurers to the presence of the hazard.
In short, PC120 does not create Section 72 notices, but developments affected by PC120 controls may face an increased risk of a Section 72 being imposed if hazards remain.
Whether you’re purchasing a home, bare land, or an investment property, it’s vital to understand what’s registered on the title and how it affects your plans. From Building Act notices to zoning and natural hazard overlays, these issues can significantly impact insurance, finance, and future development. Our property team can guide you through the legal implications, while the experts at CivilPlan can provide specialist advice on planning, engineering, and consent requirements. Contact us today to make sure your next property decision is fully informed.
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