Legal and Negotiation Processes
Preparation and Planning
Settlement and Post-Purchase
The Market and Compliance
Viewing and Inspecting Properties

How To Use The Step Guides
Buyer Introduction
Your Current Scenario
Understanding Real Estate Market Dynamics and Influences
Assessing the Benefits of Owning vs. Renting
Assessing Your Readiness and Financial Planning for Homeownership
Establishing a Budget for Property Purchase
Deciding to Work With A Mortgage or Financial Adviser
Deciding on Whether to Proceed with Home Buying
Analysing Financial Capacity for a Mortgage in New Zealand
Getting Pre-Approved for a Mortgage
Proceeding As a Cash Buyer
Attending Property Seminars and Workshops
Exploring Various Mortgage Options in New Zealand
Property Sale Types in New Zealand
Anti Money Laundering Rules and Regulations
Determining Long-Term Goals and Future Plans for Property Buying
Costs Associated with Buying a Property
Creating a List of Must-Haves and Nice-to-Haves
Potential Purchasing Partners for Property Buying
Researching the Housing Market in Your Desired Area
Location and Commuting
Understanding Property Taxes in New Zealand
How to Compare The Values of Similar Properties
Exploring Property Listings and Conducting Online Research for Buying Property
Interacting with Real Estate Agents
Arranging Private Viewings of Properties
Guide to Attending Open Homes and Viewing Properties
Arranging Professional Property Inspections
Seeking Comprehensive Legal Advice Before Making an Offer
Choosing the Right Conveyancing Lawyer when Buying Property
Understanding Legal Obligations and Rights as a Buyer
Considering Community Amenities and Infrastructure
Conditional Offers Versus Unconditional Offers
Formulating an Offer Strategy
Buying a Property at Auction
Buyer First Mover Advantage Offer Strategy
Engaging in Negotiation of Purchase Terms
Ensuring Compliance with Agreement Conditions When Buying Property
Discussing Agreement Details with Your Legal Advisor
Undertaking a Geotechnical Report
Reviewing Property Inspection Reports for Potential Issues
Requesting and Analysing a LIM Report

Requesting and Analysing a PIM Report
Things to Do During Due Diligence Period to Prepare for Move
Advantages and Disadvantages of Using a Moving Company
Organising Home and Contents Insurance
Settlement Day Procedures
How to Deal With Settlement Delays in Property Transactions
Planning Interior Layout and Design
Settling In and Post Purchase Steps
Purchasing Necessary Furniture and Appliances
Tools and Services To Help Manage Your Property & Finances Post Purchase
Re-evaluating Your Budget Three Months Post-Property Settlement

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Buy / Step 43 of 54

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.

Understanding the Wait: Patience is Key

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:

Property Details and History

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.

Zoning and Land Use

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.

Consents and Licenses

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 and Orders

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.

Services and Utilities

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.

Natural Hazards

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.

Rates Information

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:

Further Investigations

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.

Negotiations with Seller

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.

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.

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