New Zealand sits on the Pacific Ring of Fire, making seismic resilience a defining feature of its built environment. Since the devastating Canterbury earthquakes of 2010–2011 and the 2016 Kaikōura earthquake, the rules around earthquake-prone buildings (EPBs) have tightened considerably. For property buyers, understanding how earthquake-prone status appears on — and affects — a property title is critical due diligence.
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What Is an Earthquake-Prone Building?
Under the Building Act 2004 (as amended in 2017), a building is classified as earthquake-prone if its structure:
- Would reach its ultimate capacity in a moderate earthquake
- Has a seismic rating of less than 34% of the New Building Standard (NBS)
In practical terms, this means the building is significantly below current building code requirements for seismic performance. Buildings rated below 34% NBS are considered to pose a risk to life safety in a moderate earthquake.
The NBS Rating Scale
The New Building Standard percentage rating provides a standardised measure of a building's seismic performance:
- Below 34% NBS — Earthquake-prone (EPB notice required)
- 34% to 66% NBS — Earthquake risk (not legally earthquake-prone but below current standard)
- 67% to 100% NBS — Meets or approaches current building code
- Above 100% NBS — Exceeds current requirements
How EPB Status Appears on Property Titles
When a territorial authority (council) issues an earthquake-prone building notice, this information interacts with property records in several ways:
EPB Notices on the Council Register
Every territorial authority must maintain a public register of earthquake-prone buildings in its district. This register is separate from the property title system but is a critical part of due diligence.
Title Implications
While the EPB notice itself is not directly registered on the Record of Title through the official land registry, the consequences of earthquake-prone status can appear on titles through:
- Building consent conditions registered as encumbrances
- Strengthening covenants required by councils or as conditions of sale
- Consent notices under section 221 of the Resource Management Act
- Heritage orders that may interact with strengthening requirements
- Insurance exclusions noted in mortgage documentation
Why a Title Search Matters
A title search won't directly tell you a building is earthquake-prone, but it will reveal:
- Registered encumbrances that may relate to seismic strengthening requirements
- Consent notices from previous resource consent conditions
- Heritage classifications that affect how strengthening can be carried out
- Multiple ownership or unit title structures that complicate strengthening decisions
- Existing mortgages whose terms may be affected by EPB status
The EPB Framework: Timelines and Obligations
The 2017 amendments to the Building Act created a structured framework for identifying and remediating earthquake-prone buildings:
Seismic Risk Areas
New Zealand is divided into three seismic risk areas, each with different timelines:
High seismic risk areas (e.g., Wellington, Napier-Hastings, Wairarapa):
- Councils had until July 2022 to identify priority EPBs
- Owners have 7.5 years from the EPB notice to complete strengthening
Medium seismic risk areas (e.g., Christchurch, Auckland, Hamilton):
- Councils had until July 2027 to identify priority EPBs
- Owners have 12.5 years from the EPB notice to complete strengthening
Low seismic risk areas (e.g., parts of Northland and Southland):
- Councils have until July 2032 to identify EPBs
- Owners have 17.5 years from the EPB notice to complete strengthening
Priority Buildings
Within each area, priority buildings — unreinforced masonry buildings and buildings on key transport routes or with high public use — must be identified and strengthened first.
Due Diligence for Buyers: A Step-by-Step Approach
If you're considering purchasing a property that may be earthquake-prone — particularly commercial buildings, older apartments, or heritage buildings — follow this due diligence process:
Step 1: Conduct a Title Search
Start with a Record of Title search ($42.90) to understand the property's legal status, ownership structure, and any registered encumbrances. Request copies of any relevant instruments ($39.90 each) to understand covenants or conditions.
Step 2: Check the Council's EPB Register
Contact the relevant territorial authority or check their website for the public EPB register. This will tell you whether the building has been identified as earthquake-prone.
Step 3: Request a Detailed Seismic Assessment (DSA)
If the building has been assessed, request the DSA report. This provides the NBS rating and details of the building's seismic vulnerabilities.
Step 4: Understand Strengthening Costs
For earthquake-prone buildings, obtain estimates for seismic strengthening. Costs vary enormously depending on the building's construction type, size, and target NBS rating. Strengthening can range from tens of thousands to millions of dollars.
Step 5: Check Insurance Availability
Insurance for earthquake-prone buildings is difficult and expensive to obtain. Some insurers won't cover EPBs at all. Verify insurance availability before committing to purchase.
Step 6: Review the Survey Plan
A survey plan ($49.90) shows the building's footprint and its relationship to boundaries, which is relevant for understanding structural strengthening options.
Impact on Property Values
Earthquake-prone building status has a significant impact on property values and marketability:
- Reduced market value — Buyers factor in strengthening costs, and some lenders won't finance EPB purchases
- Higher insurance premiums — If insurance is available at all, premiums will be substantially higher
- Reduced rental income — Some tenants (particularly government agencies) will not lease space in EPBs
- Stigma effect — Even after strengthening, previously earthquake-prone buildings may carry a market perception discount
- Heritage complications — Heritage-listed EPBs face additional constraints on how strengthening can be carried out
Special Considerations by Property Type
Commercial Buildings
Most EPB notices apply to commercial buildings, particularly older masonry structures in CBDs. Title searches for commercial properties should always be accompanied by an EPB check.
Unit Title Properties
Earthquake-prone apartment buildings present unique challenges because strengthening decisions require body corporate approval. The title search will reveal the unit title structure and any existing body corporate resolutions.
Heritage Buildings
Heritage-listed buildings may have heritage orders registered on their titles. These orders can restrict how seismic strengthening is carried out, potentially increasing costs and complexity.
Cross Lease Properties
Older cross lease buildings may have seismic vulnerabilities. The flats plan and lease instruments (searchable through the title system) are essential for understanding shared obligations.
What Happens If You Don't Strengthen?
Building owners who fail to comply with EPB notices face serious consequences:
- Council can issue a notice to vacate the building
- Fines of up to $200,000 for non-compliance
- Daily penalties for continuing non-compliance
- Council may carry out strengthening work and recover costs from the owner
- Reputational and liability risks in the event of an earthquake
Start Your Property Due Diligence Today
A title search is the essential first step in any property purchase, and it's particularly important when seismic risk is a factor. Certificate of Title NZ provides fast, reliable searches across all general land in New Zealand:
- Record of Title — from $42.90
- Guaranteed Search — from $45.90
- Historical Titles — from $42.90
- Instruments and Documents — from $39.90
- Survey Plans — from $49.90
- Pre-Purchase Package — from $189.90
All searches are sourced from New Zealand's official land information body, with delivery in as little as two hours.
Disclaimer: This article is for general informational purposes only and does not constitute legal, engineering, or building advice. For specific advice on earthquake-prone buildings, consult a structural engineer or building lawyer.
