Requesting and Analysing a LIM Report
Understanding your LIM Report and what it means for your property
When it comes to purchasing property in New Zealand, conducting thorough due diligence is paramount. Among the various inspection reports available, the Land Information Memorandum (LIM) stands out as a critical document that provides comprehensive information about a property. Understanding and analysing a LIM report is essential for identifying potential issues that could affect your decision to proceed with a purchase. This guide will walk you through the importance of LIM reports, how to request one and what to look for when reviewing its contents.
A Land Information Memorandum (LIM) is an indispensable tool in the property-buying process. Prepared by local councils, it contains important information about land and property such as zoning, consents, rates information and any notices that may affect the land or buildings. Given its significance, it should be one of the first things you order once your offer on a property is accepted. While other reports can be obtained relatively quickly, LIM reports take time for councils to prepare and send. This time factor underscores the need to prioritise requesting a LIM early in your due diligence process to avoid any delays that could impact your decision-making timeline. Starting Early: The First Step Towards Informed Decision-Making Once you've successfully made an offer on a property and it gets accepted, it's time to get down to business. The first crucial step? Requesting a Land Information Memorandum (LIM) report from your local council. The process for requesting a LIM report typically involves: Completing an application form: This form is usually available on the council's website or at their office. It will require some basic information about the property and yourself. Paying a fee: There's usually a cost associated with obtaining a LIM report — consider it as an investment towards making an informed decision. Remember, procedures can vary depending on your local council, so it's wise to check with them for any specific requirements or procedures. Requesting your LIM report early on is important because councils aren't known for their speed when compiling this data-laden document. Why? They're not just pulling together any old information — they're meticulously gathering data from various departments, ensuring that everything you receive is accurate and up to date. It might take them several weeks to prepare your LIM report. While this waiting period can seem lengthy, especially if you're eager to move forward with your property purchase, remember that good things come to those who wait. This document will provide you with vital details that could significantly impact your decision-making process. Once you receive your LIM report, it's time to scrutinise its contents carefully. Here’s what you need to focus on: The report begins with basic details about the property’s legal description and historical data such as previous building consents and works done on the property. Pay close attention to this section as it can reveal past issues or alterations that may not be immediately visible. Understanding how the land is zoned is fundamental. Zoning dictates permissible activities and developments on the property. Check for any restrictions or provisions that could affect future plans or the property’s value. Look for any building consents or resource consents issued for works completed on the property. Ensure these have been closed off properly with a Code Compliance Certificate (CCC). Missing CCCs can indicate non-compliance with building regulations. Notices from the council regarding requisitions or orders affecting the property are critical red flags. These may include orders for works to be done or compliance issues that need addressing. Information about drainage, water supply, sewage systems and other utilities should be verified against what you’ve been told or have observed about the property. Discrepancies here could signal potential problems. The report will disclose if there are any known natural hazards associated with the land such as flooding risk or earthquake susceptibility. Such hazards can influence insurance premiums and risk assessments. Outstanding rates or unpaid charges attached to the property will become your responsibility upon purchase unless negotiated otherwise. After reviewing these key areas within your LIM report: If anything raises concern within your LIM report, such as unconsented works or potential natural hazards, it may warrant further investigation through specialists like surveyors or engineers who can assess risks accurately. Uncovered issues might give you leverage in negotiating terms with sellers, possibly leading to price adjustments or requests for remediation before settlement occurs. Ultimately, armed with knowledge from your LIM report alongside other due diligence efforts like building inspections, you'll be able to make an informed decision about proceeding with your property purchase.
Understanding the Wait: Patience is Key
Property Details and History
Zoning and Land Use
Consents and Licenses
Notices and Orders
Services and Utilities
Natural Hazards
Rates Information
Further Investigations
Negotiations with Seller
A thorough review of a Land Information Memorandum is an essential step in assessing potential issues when buying property in New Zealand. By understanding how to request and analyse this vital document effectively, you empower yourself with knowledge about every aspect of your potential investment before making commitments.
