Earthquake-prone buildings: the new reforms
In our Summer 2025 edition (Issue 50), we discussed the government’s proposed changes to the earthquake-prone building (EPB) regime. A year on and the Building (Earthquake-prone Buildings) Amendment Act 2026 is now in force; it introduces a more targeted approach to managing earthquake risk.
Some of the changes took effect from 26 September 2026; these removed buildings in Auckland, the Chatham Islands and the upper North Island low seismic zone from the regime.
The remainder of the new framework will come into force on 1 July 2027; this focuses on specified buildings in medium and high seismic zones. Remediation requirements will depend on a building’s construction and risk profile, with some buildings requiring no strengthening work at all.
For property owners, these changes may reduce the cost of complying with earthquake-strengthening requirements. If you own a commercial building, are considering purchasing one, or lease premises where strengthening work has been proposed, it is worth checking whether the building’s status or obligations have or will change under the new rules.
Importantly, removal from the EPB regime does not necessarily mean a building is structurally safe. Before relying on the reforms when buying, selling or leasing a property, you should check the relevant council records and seek engineering advice where appropriate. Existing leases and sale agreements should also be reviewed to establish who remains responsible for any strengthening work and associated costs.
Pre-settlement inspection: when a property is sold with a tenant
Buying a tenanted property raises practical questions about access, condition and vacant possession on settlement day. The buyer’s ability to inspect before settlement depends on the terms of the agreement for sale and purchase and the existing tenancy arrangements.
Under the standard TLANZ/REINZ agreement, the pre-settlement inspection clause provides a mechanism for checking the property’s condition and confirming that the seller has complied with their contractual obligations.
Where a tenant remains in occupation, however, access must be arranged in negotiation with the tenant and in compliance with the Residential Tenancies Act 1986.[1] A sale does not give the seller or buyer an unrestricted right to enter the property.
For buyers, the agreement should clearly record whether the property is sold with vacant possession or subject to the existing tenancy. If an inspection is required, lawyers for each side should ensure appropriate access arrangements are made in advance. Sellers should likewise avoid promising vacant possession without first establishing that the tenancy can lawfully be terminated.
The practical lesson is to address possession and inspection rights when the agreement is negotiated, rather than leave them to become a settlement day dispute.
End of tenancy inspection issues
Moving out of a rental property can be stressful, and disputes over cleaning, damage and bond refunds can add to the pressure. Knowing what is expected of you as a tenant, or what you can reasonably require as a landlord, can help avoid unnecessary costs, time and surprises.
Under the Residential Tenancies Act 1986, tenants must leave the property reasonably clean and tidy, remove their belongings and rubbish, and return the keys.[2] It’s wise to take photographs of the property’s condition. Tenants are not responsible for fair wear and tear from ordinary use. Landlords cannot automatically charge tenants for routine deterioration or insist on professional carpet cleaning in every case.
Landlords should compare the final condition with the original inspection report and document any damage with photographs and supporting evidence.
If you disagree about a proposed bond deduction, you do not have to accept an unsupported claim. Try to resolve the issue directly first; if agreement cannot be reached, either party can seek a determination through the Tenancy Tribunal.
If a dispute arises or you are unsure about your rights and obligations under a tenancy agreement, please do not hesitate to get in touch and we can discuss your situation with you.
[1] Section 48 of the Residential Tenancies Act 1986.
[2] Section 40.
