Flood-Prone Land: What Buyers Need to Know Before Purchasing

What is Flood-Prone Land?

Flood-prone (or flood-affected) land is identified by councils as being at risk of flooding based on past events and predictive modelling. In NSW, this risk is quantified using the Flood Planning Level (FPL), often calculated as a 1-in-100-year flood event plus a safety margin. Similar systems apply in QLD and VIC, with differences in terminology and enforcement.

If the land you’re considering is flood-prone, that doesn’t automatically rule it out—but it does mean you need to look at the legal, financial, and practical consequences carefully.

Legal Implications: What Your Property Lawyer Should Help You With

1. Contract and Disclosure Review

Flood zoning should be disclosed in:

• NSW: Section 10.7(2) Planning Certificate.
• QLD: Property Occupations Act 2014 (Material Facts).
• VIC: Section 32 Vendor Statement.

These disclosures aren’t always black-and-white, so a sharp-eyed property lawyer NSW, property lawyer QLD, or property lawyer VIC is crucial to help you understand what you’re actually signing up for.

2. Development Restrictions

Buying is just the beginning. Building on flood-prone land often comes with strings attached, like:

• Raising floor levels
• Using water-resistant materials
• Completing flood impact or hydraulic studies

Local Environmental Plans (LEPs) and state policies such as NSW’s Flood Prone Land Policy or VIC’s Planning Practice Note 12 outline what you can and can’t do.

Insurance: What’s Covering You—and What’s Not

Securing insurance on flood-prone land can be tricky, and often expensive. In severely affected areas like Lismore, many insurers pulled back or declined coverage altogether after repeated floods in recent years. This makes it difficult—not impossible—to get insured.

Some insurers will still cover properties in high-risk zones, but at a cost. Premiums can be significantly higher, and flood excesses can run into tens of thousands. This can affect your mortgage eligibility too—lenders may not fund purchases that lack sufficient cover.

Tip: Always get a few insurance quotes before committing to purchase. Even if one insurer says “no,” another might say “yes”—but you want to know the cost before you find yourself knee-deep in contracts.

Assessing Flood Risk: Practical Due Diligence

Don’t rely on hope or hearsay. Here’s how to dig into the real risk:

• Check the Planning Certificate or Vendor Statement for disclosures.
• Google “[Council Name] + flood map” – many local councils publish flood overlays or mapping tools online.
• Contact the local council directly if online maps aren’t clear.
• Hire a surveyor or town planner to interpret flood overlays and topography.
• Talk to neighbours – local knowledge is often more accurate than maps alone.

And yes, your best property law firm (that’s us!) can help you make sense of it all.

The Resale Reality: Will Flood Risk Affect Future Value?

Even if you’re comfortable buying now, think ahead. As climate change drives more frequent and severe weather events, flood-prone properties may face:

• Longer selling times
• Lower resale values
• Skeptical buyers and lenders

Mandatory flood disclosures make it harder to downplay risk later. And if future insurance becomes harder to get—or more expensive—this will naturally affect buyer demand and price.

If you plan to hold the property long term or redevelop, it’s worth considering how resilient the asset will be—not just to water, but to market sentiment.

Flood-Prone Doesn’t Mean Unbuyable

Yes, there are risks. But there are also ways to mitigate them. Flood-prone land can still be valuable—especially if:

• You go in with eyes wide open
• You budget for insurance and compliance costs
• You get sound legal advice before signing anything

Let Jaide Law Help You Navigate Flood Risk

Buying flood-prone land? We’ve got your back. At Jaide Law, we combine legal precision with practical insight—because we understand that you’re not just buying property; you’re investing in your future.

As a property law firm helping clients across NSW, QLD, and VIC, we’ll help you review contracts, decode disclosures, and make smart, informed choices.

Contact us today to speak with a property lawyer NSW, property lawyer QLD, or property lawyer VIC who actually listens—and who gets results.

Disclaimer – We know most of you get this, but just to be clear, the information above is general and doesn’t consider your unique situation. Please don’t rely on it as a substitute for professional advice. We strongly encourage you to seek appropriate guidance for your specific needs.