Property Title and the Building Act in New Zealand: What Homeowners and Buyers Must Know

How the Building Act Connects to Your Property Title

New Zealand's Building Act 2004 governs how buildings are constructed, altered, and demolished — but its reach extends well beyond construction sites. Several provisions of the Building Act directly affect what appears on your Record of Title, and failing to understand these connections can lead to expensive surprises when you buy, sell, or renovate a property.

This guide explains the key intersections between the Building Act and your property title, what to look for, and how to protect yourself.

Building Consent Notices on Your Title

Under the Building Act, your local territorial authority (city or district council) can register building consent notices against your title. These notices inform future owners and interested parties about building-related conditions that affect the property.

The most common building-related entry on a New Zealand title is a reference under Section 221 of the Resource Management Act — a consent notice that may include building-related conditions. But the Building Act also creates specific title entries:

• Compliance schedule references — for commercial and multi-unit buildings with specified systems (fire alarms, lifts, etc.)
• Building consent condition endorsements — when building consent was granted subject to conditions that must be registered on the title
• Notice of dangerous or earthquake-prone building — if the council has issued a notice under the Building Act

You can identify these entries by ordering a Record of Title with Diagram ($42.90) and reviewing the encumbrances and interests section.

Code of Compliance Certificate and Your Title

A Code of Compliance Certificate (CCC) is issued by your local council when building work complies with the Building Code and the approved building consent. While a CCC itself is not registered on your title, its absence can create title complications:

• If building work was done without building consent, the council may issue a notice to fix, which can eventually be registered against your title as an encumbrance.
• If you are buying a property with unconsented work, the title may already carry references to outstanding building issues.
• Lenders often require evidence of CCCs before approving finance — they will review the title as part of their due diligence.

Before purchasing any property, check for building consent references on the title and request the council's property file to verify all work has proper consent and CCC documentation.

Read more: How to Check for Unconsented Building Work on a Property in New Zealand

Earthquake-Prone Building Notices and Your Title

The Building Act's earthquake-prone building provisions can have a significant impact on property titles. If a building is determined to be earthquake-prone, the council must:

1. Issue an earthquake-prone building notice
2. Register this notice against the property title
3. Set a timeframe for remediation or demolition

This is particularly relevant in areas like Wellington, Christchurch, and other seismic zones. An earthquake-prone building notice on a title is a serious matter — it can affect:

• Property value — the cost of strengthening work can be substantial
• Insurability — insurers may decline or restrict cover
• Financing — banks may be reluctant to lend against earthquake-prone properties
• Tenantability — some buildings may need to be vacated

Always check the title for earthquake-prone building notices. A Guaranteed Search ($45.90) provides official confirmation of all registered interests, including these notices.

Dangerous Building Notices

Under Section 124 of the Building Act, a council can determine a building to be dangerous (posing an immediate risk to people) or insanitary (posing health risks). When this happens, the council can:

• Issue a notice requiring work to be done
• Restrict the use or occupation of the building
• Register the notice against the property title

If you are considering buying a property, always check the title for these notices. A property with a dangerous or insanitary building notice is a significant liability.

Building Consent and Title: Before You Build or Renovate

If you are planning building work, your property title affects what you can do:

• Covenants and consent notices may restrict building height, materials, or location on the site
• Easements may limit where you can build (for example, a right of way easement prevents building over the access way)
• Flats plans on cross-lease titles define the building footprint — changing it requires a title update
• Designations for public works may allow acquisition of part of your land

Before applying for building consent, order a Record of Title with Diagram ($42.90) to understand all title restrictions. This avoids the costly mistake of getting consent approved only to discover a title restriction prevents the work.

Read more: Property Title Search for Renovations in NZ: What Your Title Reveals Before You Build

Cross-Lease Titles and Building Work

Cross-lease properties have unique Building Act implications. The flats plan on a cross-lease title shows the building footprint. If you want to:

• Extend the building beyond the footprint shown on the flats plan
• Add a new structure that is not on the plan
• Significantly alter the external appearance

You must update the flats plan on the title — otherwise the cross-lease becomes defective. This is a common issue that can delay property sales and requires legal resolution.

Order the Survey Plan ($49.90) alongside your Record of Title to see the current boundaries and building footprints.

Unit Title Properties and the Building Act

Unit title properties (apartments and townhouses) are governed by both the Building Act and the Unit Titles Act 2010. Key considerations:

• The body corporate is responsible for maintaining compliance with the Building Act for common areas and specified systems
• Compliance schedules must be current — check these are in order before buying
• Long-term maintenance plans are required for unit title developments over a certain size
• Individual unit titles may reference building consent conditions

For a complete picture, the Pre-Purchase Due Diligence Package ($189.90) includes the Record of Title, Guaranteed Search, and relevant instruments — everything you need for thorough unit title due diligence.

What to Check on Your Title Before Building Work

If you are planning any building project, here is a title checklist:

1. Order a current Record of Title — check for covenants, consent notices, easements, and designations that could restrict building
2. Review the survey plan — understand exact boundaries and any building location restrictions
3. Check for earthquake-prone or dangerous building notices — these will affect what consent you can get
4. Verify building consent references — if the title mentions prior building consents, ensure they were properly completed with CCCs
5. Check for compliance schedule references — particularly for multi-unit or commercial properties

Read more: Property Title and Building Consent NZ: What Homeowners and Buyers Must Know

When the Council Registers a Notice Against Your Title

If the council identifies a Building Act compliance issue, it can register a notice against your title. This is not merely administrative — it is a legal encumbrance that:

• Must be disclosed to prospective buyers
• May prevent or delay the sale of the property
• Can affect your ability to refinance
• Remains until the issue is resolved and the notice is formally removed

Removing a council notice from your title requires you to:

1. Complete the required remedial work
2. Obtain a CCC or code compliance documentation
3. Apply to the council for the notice to be removed
4. Register the removal with the land registration system

Each step can take weeks or months, so early action is essential.

FAQ

Can I buy a property that has a building notice on the title?

Yes, but proceed with caution. Understand what the notice requires, the cost of remediation, and the timeframe for compliance. Negotiate the purchase price to reflect these costs. Order a Guaranteed Search ($45.90) and consult a property lawyer before committing.

What if building work was done without consent before I bought the property?

You may inherit the problem. The council can issue a notice to fix that becomes your responsibility. A Record of Title will show if there are any registered building-related notices, and you can also request the council's property file for consent history. Consider a Pre-Purchase Due Diligence Package ($189.90) before buying to uncover these issues.

Do I need to update my title after getting building consent?

Not always — most building consents do not create a title entry. However, if the consent was granted subject to conditions that the council requires to be registered on the title, or if you are on a cross-lease and the building footprint changes, then a title update is required. Always check with your solicitor.