If you are a first home buyer then you need to be aware of the “Section 74 notice” or a consent granted “under Section 72” during a property purchase.
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The Property Warning to Watch
If a lawyer has ever flagged a “Section 74 notice” or a consent granted “under Section 72” during a property purchase, you’re not alone, and if that hasn’t happened to you yet, it’s worth knowing what to look for. These terms are often used together, or in place of each other, but they are not the same. Section 72 is the Building Act pathway that allows or requires a council to grant a building consent on land affected by certain natural hazards when the statutory tests are met. Section 74 is the follow-up title notice process that records the consent and hazard on the property’s record of title so future buyers, lenders and insurers can see the risk.
What Are Section 72 Consents and Section 74 Title Notices?
Under Sections 71 to 74 of the Building Act 2004, the natural hazard provisions are triggered when a building consent is sought for a new building or major alteration on land affected, or likely to be affected by hazards such as erosion, falling debris, subsidence, inundation (flooding) or slippage. If the council is satisfied the proposed work will not make the hazard worse and the legal tests are met, Section 72 can require the consent to be granted. Section 74 then requires the council to notify the Registrar-General of Land so an entry is recorded on the property’s title, identifying the consent and the relevant natural hazard.
- Section 72 is the consent decision: it allows or requires the building consent to proceed despite a qualifying natural hazard, provided the statutory criteria are met.
- Section 74 is the title entry: it records that the consent was granted under Section 72 and identifies the natural hazard so future buyers, lenders and insurers are alerted.
In everyday conversation people often say “Section 72 notice”, but the title notation itself is more accurately a Section 74 entry arising from a building consent granted under Section 72. The notice alerts future owners to the natural hazard and also helps protect the consenting authority from liability for allowing building work to proceed on hazard-affected land.
Listen to Jenee Tibshraeny talk about the issues and risks for homeowners.
Why It Matters for Insurance
A Section 74 entry is not just a formality. Under the Natural Hazards Insurance Act 2023, the Natural Hazards Commission may fully or partly decline a claim where the property title contains a Section 74 entry linked to a Section 72 consent, and the damage is a direct result of the same kind of natural hazard identified in that entry (NHC, n.d.).
Reported estimates suggest tens of thousands of properties may now face partial or full insurance limitations because of natural hazard notices or entries on title. Furthermore, “the Insurance Brokers Association of New Zealand (IBANZ), the industry’s lobby group, is calling for a centralised register of properties impacted by a hazard warning called a Section 72 notice.” (Te, 2026)
The Numbers Are Climbing
LINZ data shows the number of properties gaining natural hazard title entries associated with Section 72/74 Building Act processes has risen substantially over the past decade. As councils continue identifying hazard areas through plan changes and consent processes, more properties are likely to pick up these title entries over time. In other words, a title that’s clean today isn’t guaranteed to stay that way.
Bigger Changes on the Horizon
There are some bigger changes on the horizon and you need to be aware of these.
- The Natural Hazards Insurance Act 2023 replaced the old Earthquake Commission Act from 1 July 2024, updating how natural hazard cover and claims work nationally.
- A new National Policy Statement for Natural Hazards took effect from 15 January 2026, requiring a more consistent, risk-based approach for hazards including flooding, landslips, coastal erosion, coastal inundation, active faults, liquefaction and tsunami.
- The Government has introduced Bills to replace the Resource Management Act entirely, with natural hazard management named as one of the core goals of the new planning system.
What Buyers (You) Should Do?
Now this is what is really important, especially for first home buyers.
Firstly, always check the record of title for Section 74 entries, Section 72 references, or older equivalent notices such as Section 36(2) or Section 641A.
Request a LIM report and read the hazard section carefully, not just the headline. Remember hazard maps and notices are updated periodically, so a property’s risk status can change even if nothing has physically changed on the land.
Keep an eye out for future changes to hazard legislation and the natural hazards insurance on the Natural Hazards Commission website.
