Earthquake-Prone Buildings in New Zealand: Compliance & Requirements

New Zealand’s Building Act 2004 sets strict rules for earthquake-prone buildings. If you own, manage, or are buying a commercial or multi-unit residential building built before 1976 (or certain other buildings), you need to understand your obligations. This guide covers the key requirements under s133AE of the Building Act, the %NBS assessment system, the 25-year deadline, council notification, remediation options, and how all this affects property sales and insurance.

What is an Earthquake-Prone Building?

Under s133AE(1)(b) of the Building Act 2004, a building is earthquake-prone if it is less than 34% of the new building standard (%NBS). This threshold applies to all buildings that are not exempt (e.g., farm buildings, some residential outbuildings). The assessment must be carried out by a chartered professional engineer using the NZSEE guidelines (Earthquake Prone Building Assessment Guidelines).

The 25-Year Deadline

Each territorial authority has a 25-year deadline from the date the building was first identified as potentially earthquake-prone (usually from the date of the initial engineering assessment). This deadline is set by the council and is based on the seismic risk zone (high, medium, or low). The building must be strengthened or demolished within this timeframe. Under s133AX, the council may grant an extension if the building is part of a heritage area or if there are unreasonable financial hardship grounds.

Council Notification & the EPB Register

Once a building is identified as earthquake-prone, the council must enter it on the Earthquake-Prone Building (EPB) Register (s133AU). This register is publicly available online. The council will also issue a notice of earthquake-prone building to the owner (s133AT). The notice will include:

• The building’s %NBS rating
• The deadline for remediation
• Any interim safety requirements (e.g., signage, fencing)

If you sell the property, you must disclose the EPB status to the buyer. Under the Property Disclosure Statement (s146 of the Building Act), you must answer whether the building is earthquake-prone. Failure to disclose can lead to legal action for misrepresentation.

Remediation Options

You have three main options to deal with an earthquake-prone building:

1. Strengthen – Bring the building to at least 34% NBS (or higher if required by the council for specific uses, e.g., schools or hospitals). Strengthening must be done by a chartered professional engineer and comply with the Building Code.
2. Demolish – Remove the building entirely. This is often the cheapest option if the building is beyond economic repair.
3. Partial demolition – Remove only the unsafe parts (e.g., a dangerous facade) and leave the rest, provided the remaining structure meets the 34% threshold.

You may also apply for financial assistance from the council or central government (e.g., the Earthquake-Prone Building Financial Assistance Scheme), but this is limited and subject to eligibility.

Impact on Property Sale & Insurance

An earthquake-prone building status can significantly affect your property’s value and insurability:

• Sale: Buyers will likely demand a discount of 20–50% of the building’s value, depending on the %NBS and remediation cost. Some lenders may refuse to finance the purchase.
• Insurance: Many insurers will not cover earthquake damage for buildings below 34% NBS, or they will charge very high premiums. You may need to get a seismic assessment before obtaining cover. Under the Insurance (Prudential Supervision) Act 2010, insurers are not required to cover earthquake-prone buildings.

If you are selling, you must disclose the EPB status in the LIM report (Land Information Memorandum) and the Property Disclosure Statement. The buyer’s solicitor will usually check the EPB register.

For more detailed guidance on managing your compliance obligations, including templates for council notifications and remediation plans, visit the ShiftScript portal.

Frequently Asked Questions