Properties in Mine Subsidence Districts

Underground coal mining and property values

There are many areas in NSW where the presence of underground mining is well known and there is high demand for property.

Subsidence Advisory provides a fair, efficient and sustainable compensation scheme for dealing with the impacts of coal mine subsidence to protect the value of property and safety of the community. For example, Newcastle has a long history of successfully managing subsidence risks while maintaining a vibrant property market.

Areas where there are potential subsidence risks to development are included within a mine subsidence district so Subsidence Advisory can help prevent damage and reduce impacts should subsidence occur.

Protections for property owners

Under the Coal Mine Subsidence Compensation Act 2017 (the Act), buyers may withdraw from a contract of sale for a structure that does not comply with Subsidence Advisory’s development requirements.

During property sale negotiations, prospective purchasers can request confirmation of whether a structure has the correct approvals or if a claim was lodged by the seller.

Copies of development approval may also be obtained through the council.

Discretional coverage for unwitting purchasers

The Act provides discretion to pay a claim for subsidence damage to a contravening development in circumstances where the failure to obtain the relevant approvals was not the fault of the property owner or where exceptional circumstances exist.

Previous or pending claims for subsidence damage

Prospective purchasers may be able to find out if there have been any previous or pending claims for subsidence damage at a property during the sale process or through information disclosed by the seller under a claim settlement deed.

Subsidence Advisory NSW does not maintain a public register of property claim history. Buyers should request this information through their conveyancer or directly from the seller.

During property sale negotiations, your conveyancer may ask the seller questions to confirm there are no current claims on the property under the Coal Mine Subsidence Compensation Act 2017.

Disclosure of compensated subsidence claims

For accepted mine subsidence claims, property owners are generally required to submit a signed deed of release to Subsidence Advisory NSW. The deed requires property owners who elect to sell a property without rectifying the damage to disclose to purchasers that the damage has been the subject of a claim and has not been rectified. This includes a requirement to have the purchaser sign their acknowledgment that no further claims for the compensated damage can be made.

About the 15b certificate register

Certificates were issued under the previous Coal Mine Subsidence Compensation Act 1961 to confirm that structures were eligible for mine subsidence damage compensation.

New certificates are no longer issued; however the historical register remains available for reference.

You can use the search tool to see if a certificate was previously issued for a property.

These certificates only apply to structures that existed at the time of issue. Later structures must be checked separately.