Section 72 notifications on a Certificate of Title

Conditional Building consents

When a building consent is requested to build a dwelling or structure on a property, the local authority is required to consider if the work will create or make worse a natural hazard on a property.

The Building Act states a building consent authority must refuse a building consent if the land on which the building work is to be carried out is subject to one or more natural hazards, or the building work is likely to accelerate, worsen or result in a natural hazard on that land or any other property.

However the consent can be issued if adequate provision has or will be made to protect land from natural hazard damage.

The building consent is therefore issued pursuant to Section 72 of the Building Act 2004(external link).

Section 72 states that the consent authority must issue a building consent if it considers the building work will not cause or make worse a natural hazard on the property. However this is a conditional consent as a natural hazard has been identified.

This is what is shown on the Certificate of Title.

Why is the notification added?

The Building Act allows a council to grant a conditional building consent, in some circumstances, where the land on which the building work is to be carried out is subject (or likely to be subject) to one or more identified natural hazards.

A Section 74 notification (or ‘entry’) is added to the Certificate of Title by the Registrar-General of Land whenever the council has granted a conditional building consent.

The notification alerts prospective purchasers and others with an interest in the property – such as lenders and insurers – that the land is subject to a natural hazard, and specifies what the natural hazard (or hazards) are.

In the past, similar provisions were in effect under Section 36(2) of the Building Act 1991 (now superseded) and Section 641A of the Local Government Act 1974(external link) (also superseded). These still appear on some land titles and have the same effect as a section 72 notification, although notifications under these superseded provisions will not always identify the natural hazard concerned.

Please note that EQC has no input into the issuing of a section 72 notice and cannot request a notice be removed.

Other notifications referred to in Section 73 and 74

Section 73 of the Building Act makes it a requirement that the consenting authority must notify the Registrar-General of Land that the property is subject to a natural hazard and a conditional consent has been issued.

Section 74 describes the steps the Surveyor-General (Land Information New Zealand) must take when receiving notification from the consenting authority.

A Section 74 notification (or ‘entry’) is added to the Certificate of Title by the Registrar-General of Land whenever the council has granted a conditional building consent.

What the Sections 72 to 74 notification means for your EQC insurance

If your property has a Section 72 or 74 notification on its land title (or a similar entry under Section 36(2) of the Building Act 1991 or Section 641A of the Local Government Act 1974) and you put in a claim for damage that is caused by the type of natural hazard (or hazards) that caused the entry to be made, EQC has the discretion to:

• meet your claim in full
• partly meet your claim, or
• decline your claim.

(This provision is set out in Clause 3(d) of Schedule 3 of the Earthquake Commission Act(external link).)

In making a determination, EQC will look at the particular circumstances of your property, the details of the notification and your claim.

Of course, if the claim is related to damage from a natural disaster of a different type from that which caused the entry to be made, EQC’s normal processes apply and EQC may meet the claim in full.

What to do

Talk to us

If you have a section 72 to 75 entry on your Certificate of Title and would like to find out how it may affect your EQCover:

• First, contact your council and ask for information about the nature of the hazard specified in the entry
• Then call EQC on 0800 326 243.

Talk to your private insurer

It’s very important to make sure that your private insurer is aware that there is a Section 72, 73 or 74 notification on your Certificate of Title.

Talk to them about whether this could affect your insurance cover.

There’s more information about this on the Insurance Council website.(external link)

The implications of section 74 notices on your property title(external link)

What to do if you’re a prospective buyer

Ask your solicitor to find out whether there is a Section 72 to 74 notification on the property’s Certificate of Title.

• Find out about the nature of the specified hazard(s) and what this might mean for you as a homeowner.
• Consider the risk of damage to the property in the future, as well as how the notification may impact on your insurance cover (including EQCover).
• A Land Information Memorandum (LIM) report from your local council may give you more information.

Related information

Land Register online

LandOnline(external link) is an online tool that you can use to see if there are any entries on a Certificate of Title.

More from the Building Act

1. Under Section 72(external link) of the Building Act 2004, a local body must issue a building consent for building work on land that is subject to (specified) natural hazards – where the building work won’t make the hazard situation worse and it’s reasonable to grant a waiver (or modification of the Building Code). The hazards that this applies to are erosion, falling debris, subsidence, inundation (including flooding, overland flow, storm surge, tidal effects and ponding) and slippage.
2. Under Section 73(external link), the council must notify the Registrar-General of Land when it issues the conditional building consent. The council must identify the natural hazard concerned to the Register-General.
3. Following requirements in Section 74(external link), the Registrar-General notes on the property’s Certificate of Title that the conditional building consent has been granted, and identifies the natural hazard.
4. Section 74 also allows for the council to notify the Registrar-General if the entry is no longer required, so it can be removed.