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Changes to Natural Hazards Information in LIM Reports

– Insights

Recent legal changes will soon affect how local councils in New Zealand include natural hazards information in Land Information Memoranda (LIMs). These reforms are intended to improve transparency and consistency across the country, with important implications for buyers, sellers and councils.

 The Local Government Official Information and Meetings Amendment Act (LGOIMA) 2023 introduces new provisions into the LGOIMA 1987 and establishes the framework for the supporting Local Government (Natural Hazard Information in Land Information Memoranda) Regulations 2025.

A LIM is a report prepared by a territorial authority that summarises key information about a property, both residential and commercial. While hazards have always been disclosed, practices varied between councils and the information was not always easy for the public to interpret.

What has changed in the legal framework

Two key legal changes are reshaping the way natural hazards are reported in LIMs:

1. LGOIMA 2023 – In force from 1 July 2025, this requires territorial authorities to include in LIMs both known and potential natural hazards affecting the land, as well as known or potential climate change impacts that may exacerbate those hazards. It also obliges regional councils, which often hold more detailed data, to share this information with territorial authorities (such as city and district councils) that issue LIMs.

 The Act also protects councils by shielding them from civil or criminal liability when hazard information is disclosed in good faith. This matters because councils can be caught between landowners who want data withheld and purchasers who expect full disclosure. By removing the risk of penalty, the law encourages more open and consistent reporting.

2. 2025 Regulations – Coming into effect on 17 October 2025, these regulations set minimum content, format and presentation standards for natural hazard information in LIMs. For example, hazard data must be grouped under subject headings (such as flooding, earthquake or coastal erosion), and maps, technical reports or district plan material must be clearly referenced or linked where relevant. The Regulations also emphasise plain language and confirm that a LIM is a disclosure tool, not a risk assessment.

 Together, these changes are designed to make LIMs clearer, more consistent and more comprehensive for property owners, developers and prospective buyers.

 Territorial authorities and regional councils are protected from civil or criminal liability for making this information available in good faith. This confirms councils can disclose more fulsome hazard data without undue litigation risk.

    Practical implications

    • Buyers and lenders: Expect more consistent and visible hazard disclosures (including future-looking “potential” hazards and climate-change effects). This may affect insurance availability, premiums and lending conditions. Always check the issue date of the LIM. If it predates 17 October 2025, consider obtaining an updated LIM so the new presentation standards apply.
    • Vendors and developers: Greater transparency may affect marketability and value where hazards are present or potential. Engage early with your advisor to understand whether district plan overlays, regional maps or technical studies might appear and how best to present context in sale documentation.
    • Councils and consultants: Regional councils should review their data pipelines and publication formats so information can be shared “as soon as reasonably practicable” and in the required form. Territorial authorities will need to align LIM templates, adopt consistent hazard headings and ensure hyperlinks and map references meet the new standards.

    Overall, if you are involved in property transactions (whether buying, selling, lending, advising or developing), it is useful to familiarise yourself with these changes, review LIMs carefully under the new framework, and seek specialist legal or technical advice if needed.

    Please note that this article provides general information only and does not constitute legal advice. For more information on the new rules on LIM reports, visit the Government’s website. If you wish to seek advice or to discuss your specific circumstances, you may get in touch with one of our property lawyers and specialists via info@adventark.co.nz or 09 969 1493.