Understanding Section 36 Notices on NZ Property Titles

easySale

11 Nov 2026 — 11 min read

In New Zealand, a section 36 notice usually means a section 36(2) notice under the old Building Act 1991. It is a warning registered on a property’s record of title because the land is exposed to a natural hazard such as flooding, landslip or erosion. It can make the property harder to insure and harder to sell, but it does not stop you selling. This guide explains what the notice is, how it differs from its modern equivalents, and what your options are.

Some search results use the same name for building laws overseas. Everything here is about New Zealand homes and New Zealand law.

EasysaleExplore a simpler way to sellEasysale buys New Zealand properties in any condition, with a straightforward sale process for homeowners navigating a title notice.Explore Easysale

TL;DR

A section 36(2) notice is an entry on a property’s record of title made under the Building Act 1991 when a council granted building consent on land subject to a natural hazard.
Section 72 notices under the Building Act 2004, and section 641A notices under the Local Government Act 1974, work in a similar way.
The main practical effect is on insurance: the Natural Hazards Commission and private insurers may decline or limit claims linked to the hazard named in the notice.
A notice does not make a home unsellable, but buyers, banks and insurers will see it, so you need a plan before you list.
Check your title, read the notice, talk to your insurer and a property lawyer, then decide how you want to sell.

What a section 36(2) notice actually is
Section 36(2), section 72, section 74 and section 641A: how they relate
How a notice ends up on your title
What a notice means for insurance
What a notice means when you sell
How to check whether your property has a notice
Your options if you have a notice and need to move
Questions to put to your lawyer
Our perspective
Talk to us about selling a property with a title notice
FAQ
Sources

What a section 36(2) notice actually is

A section 36(2) notice is a record on the certificate of title. It was put there when a territorial authority (your city or district council) granted building consent for work on land that was subject to a natural hazard. McVeagh Fleming, an Auckland property law firm, describes it as a notice to the world at large that the property is at risk from one or more natural hazards.

The notice belongs to the Building Act 1991, which has since been replaced. That is why the term feels dated. The notice itself did not go away when the law changed. If your property was consented under the 1991 Act and the council placed an entry on the title, it generally stays there.

The Building Act 1991 is also why people still talk about section 36 at all. Most notices placed today are section 72 notices, but older titles, particularly on land consented in the 1990s and early 2000s, carry the earlier wording.

How the Department of Building and Housing described it

A 2007 determination from the Department of Building and Housing (now part of the Ministry of Business, Innovation and Employment) dealt with a condition requiring a section 36(2) entry on the certificate of title. The determination described such an entry as a blot on the title. That is blunt, but it explains why owners worry. A notice is visible to anyone who looks up the title, and it stays visible until it is removed.

Section 36(2), section 72, section 74 and section 641A: how they relate

These labels cause most of the confusion, so here is how they fit together.

Notice	Law	What it is
Section 36(2)	Building Act 1991	Entry on the title when consent was granted on land subject to a natural hazard
Section 72	Building Act 2004	The modern equivalent: consent granted despite a natural hazard, with an entry on the title
Section 74	Building Act 2004	The section that provides for the entry on the title, referred to in the Earthquake Commission Act
Section 641A	Local Government Act 1974	An older council power with a similar effect

The Natural Hazards Commission Toka Tū Ake says that section 36(2) and 641A notices have the same effect as a section 72 notice on a record of title. It also points out that they do not always identify the natural hazard concerned. A modern section 72 notice names the hazard. An older one may not, which can make it harder to work out what it covers.

The Building Act 2004 deals with building on land subject to natural hazards in sections 71 to 75. According to the Act as at 15 January 2026, section 72 sets out when consent must be granted in certain cases and section 73 sets conditions, including an entry on the record of title. If you want the precise wording for your situation, that is the page to read, ideally with a lawyer beside you.

How a notice ends up on your title

Most owners do not choose a notice. It arrives as a side effect of a building consent application.

You, or a previous owner, apply for building consent for new work, an addition or a rebuild.
The council assesses whether the land is subject to a natural hazard.
If it is, the council can grant consent only on conditions, one of which can be a notice on the title.
The notice is registered, and from then on it appears whenever the title is searched.

Paul Foster of McVeagh Fleming explains that after the severe weather events of 2023, owners wanting to rebuild may find their land compromised. Councils grant consent only where the work will not accelerate or worsen the hazards, but they then require a section 72 notice on the title.

That is also how a notice can surprise a buyer. The Insurance Brokers Association of New Zealand, as reported by the NZ Herald, warns that someone may buy a home believing it is fully insurable, then have a building consent application trigger a reassessment and a notice on the title.

A simple illustration

Picture a homeowner who bought a 1990s house near a stream. Years later they apply to consent a new deck and sleepout. The council reassesses the land, finds a flood hazard and grants consent on condition that a notice is registered. The owner then finds their insurer treats flood damage differently. This is a made-up scenario, but it shows the sequence: consent application, hazard assessment, notice, then insurance and sale consequences.

What a notice means for insurance

Insurance is where most owners feel the impact, so it deserves care.

The Natural Hazards Commission says a section 72 notice is meant to make anyone with an interest in the property aware of the risk. That includes buyers, banks, lenders and insurers. It also says that claims for damage from a different natural hazard than the one named in the notice follow the normal claims process and may be met in full.

Where the hazard is the same one, the picture changes. IBANZ states that if a later claim is for damage from the same type of hazard listed in a notice, the Commission may fully or partially decline it. It adds that this can affect the cover above the Commission’s cap, because many private insurers pay their share only once the Commission accepts its portion.

The Earthquake Commission Act 1993 is also relevant. McVeagh Fleming notes that Schedule 3 of that Act allows a claim to be declined where the title carries an entry under section 36(2) of the Building Act 1991 or section 74 of the Building Act 2004. The firm says this can leave an owner without cover for both buildings and land.

What private insurers say

Insurers do not all respond the same way. In the NZ Herald report, IAG said a section 72 notice, or a Commission decision based on one, is not by itself determinative of its claim decision. It said each case depends on the circumstances, the policy and the underwriting information at the time the policy was issued. Vero said that where the Commission declines a claim because of a section 72 notice, it would generally do the same. It added that it may still help with items outside the Commission’s scope, such as driveways and swimming pools. Both statements are in the NZ Herald article.

The practical lesson is that your cover depends on your own policy wording and your insurer’s position. Ask your insurer in writing how your policy treats the hazard named in the notice, and keep the reply.

What a notice means when you sell

A notice does not prevent you from selling a property. It changes who is interested and how quickly they can commit.

Buyers, banks and insurers will all see it. McVeagh Fleming says owners with a section 36(2) or section 72 notice may be left without any insurance cover if insurers consider the hazard risk too high. Since most buyers need a mortgage, and lenders usually require insurance, a notice can cause delays at the finance stage even when the buyer likes the house.

IBANZ’s advice, again reported by the NZ Herald, is that anyone buying should check whether section 72, section 36(2) or section 641A notices have been placed on the title. Expect any informed buyer and their lawyer to do exactly that.

Common effects during a traditional sale include:

Buyers asking for a lower price to reflect insurance risk.
Conditions in the agreement for sale, such as finance or insurance clauses, that can take time to satisfy.
Buyers pulling out after their lawyer reads the title and the notice.
Longer listing periods, which add holding costs while you wait.

None of that is a reason to panic. It is a reason to prepare, and to understand which selling route suits the way you need to move.

How to check whether your property has a notice

Order a copy of your title. Your lawyer can get this quickly, and it lists the entries registered against the property.
Look for the wording. Search for references to section 36(2), section 72, section 74 or section 641A, and to the Building Act 1991 or 2004.
Request the council file. The consent record often explains why the notice was placed and which hazard the council assessed.
Read the notice against your insurance policy. Note whether the hazard is named. Older section 36(2) notices may not name it.
Ask your insurer directly. Get their position on the specific hazard, in writing.
See a property lawyer. They can explain the effect on your title and whether any steps exist to change the position.

The Natural Hazards Commission has a page on section notices that is a good starting point for the insurance side.

Your options if you have a notice and need to move

You have three broad choices.

Sell on the open market. This can work well if the notice is minor, the hazard is clearly defined and your insurer is supportive. Be ready for slower timelines and tougher questions.

Sort out the position first, then sell. Some owners get independent advice on the hazard and insurance before listing. This takes time and money and is not always possible, particularly where the property is also damaged.

Sell directly to a cash buyer. A direct buyer assesses the property as it is, notice included, and does not rely on a purchaser’s bank finance. That removes one of the biggest sources of delay. If the home is also damaged or uninhabitable, our guides on selling a damaged property and selling an uninhabitable house cover that side in detail. Our article on property defects explains what sellers need to know about disclosure.

Your options if you have a notice and need to move

Whichever route you pick, tell your lawyer about the notice at the start, not halfway through the process. The notice is on the public record, so being upfront costs you nothing and avoids awkward surprises later.

Questions to put to your lawyer

Which Act was the notice made under, and does it name a hazard?
Does the notice cover the whole title or only part of the land?
How would a buyer’s lender and insurer likely read it?
What do I need to disclose to a buyer, and when?
Are there other entries on the title that affect a sale?

For wider reading on sellers’ obligations, our legal considerations resources bring those articles together.

Our perspective

Most of the owners who contact us about a title notice are not trying to hide anything. They found out late, usually when an insurer or a buyer’s lawyer raised it, and by then they were already under pressure.

We believe the most useful thing a seller can do is get clear on the facts early: what the notice says, what your policy says, and how long you can afford to wait. After that, the choice of selling method becomes a practical decision rather than a stressful one.

At easySale, our process is designed to suit sellers who want a private sale with no agent and no commission, and who do not want to repair or tidy up the property first. You submit your details, receive a no-obligation offer, and settle on a timeline that suits you. If a notice on the title is part of your story, tell us up front and we will take it into account.

Aaron

Talk to us about selling a property with a title notice

If a section 36(2) or section 72 notice is making a traditional sale feel uncertain, you can ask for a no-obligation cash offer from easySale. We buy properties in any condition, with no agent fees, no commission and no repairs required, and you choose the settlement timeline. You can start on our page about selling your house privately, or see our fast sale option if time is tight.

If the property is damaged, our as-is page explains how that works. For inherited homes, there is a page on estate sales.

FAQ

What is a section 36 notice in New Zealand?

It is normally a section 36(2) notice under the Building Act 1991. The council registered it on the property’s record of title when it granted building consent on land subject to a natural hazard. It tells buyers, banks and insurers that the property is at risk from one or more natural hazards.

Is a section 36(2) notice the same as a section 72 notice?

They are not identical, but they have the same effect on a record of title, according to the Natural Hazards Commission. The difference is the law they come from: section 36(2) is under the 1991 Act, section 72 under the 2004 Act. Older notices may not name the specific hazard.

Can I still get insurance with a notice on my title?

Possibly, but it depends on your insurer and your policy. Claims for a different hazard to the one named in a notice follow the normal process. Claims for the same hazard may be declined in full or in part, so ask your insurer for its position in writing.

Can I sell a house that has a section 36(2) notice?

Yes. The notice is visible to buyers and lenders, so expect questions about insurance and possibly a price discussion. Tell your lawyer at the start. Some owners choose a direct cash sale to avoid delays tied to a buyer’s finance.

How do I find out if my property has one?

Order a copy of the title through your lawyer and look for entries referring to section 36(2), section 72, section 74 or section 641A. The council’s building consent file usually explains why the notice was placed.