What Is A LIM Report And Why Do You Need One?
YOLANDE SNETLER OF MCVEAGH FLEMING EXPLAINS THE IN’S & OUT’S OF A LIM REPORT
As mentioned in our previous post, it is prudent for any purchaser to obtain a Land Information Memorandum (or LIM report) before finalising a Sale & Purchase Agreement to purchase a property.
A LIM report is a summary of information about a property prepared by the local council. A LIM report usually provide details of rates and town planning matters and, more importantly, details of any requisition or building permit affecting the buildings on the land you as purchaser is proposing to purchase.
A LIM is an important part of your due diligence when entering into an agreement for sale and purchase which is subject to certain conditions including the purchaser obtaining a satisfactory LIM report.
Therefore the LIM report would show details on a property such as plumbing, drainage, water reticulation plans, consents, licences and permits etc. The LIM report would also be utilised by the purchaser to check and ascertain whether any works may have been carried out without notification to Council.
You are able to order a LIM online yourself or your solicitor would be able to do it on your behalf. Either way it is advisable to have a solicitor look over you LIM as they will be familiar with it’s content and notice things you might not.
The LIM report should only be ordered once you hold a (signed/binding) agreement for sale and purchase – ie as soon as you have signed sales and purchase, a LIM report should be ordered as soon as possible as in some instances it can take up 10 working days for the report to be prepared by Council – some areas do not have an urgent service available hence why it sometimes can take up to 10 working days (as specified above).
Three Key Areas To Check On A LIM
There are three main areas to check on a LIM to be sure your decision to purchase is taken with care.
- Building Consents
Building consents for Council approved works undertaken on a property will be noted on a LIM. Ensuring these appear on the LIM will mean any alteration works on the property comply with Council regulations.
- Special Land Features
Any land features relating to the property such as potential erosion, slippage or flood zones will appear on the LIM.
- Requisitions Affecting The Property
The Council may have placed a requisition or notice requiring the land owner to take action remedy a land or building related issue that is currently not compliant.
Having knowledge of these key areas will helps you to make a considered purchase decision. Remember you can include a clause in the Sale & Purchase Agreement to either arrange for a remedy by the seller or enter into negotiation to satisfy both parties.
IF YOU ARE LOOKING AT PURCHASING YOUR FIRST HOME AND ARE AFTER SOME GUIDANCE, YOLANDE WOULD LOVE TO HELP.
AS A SPECIAL OFFER FOR FIRST HOME BUYER CLUB MEMBERS, MCVEAGH FLEMING WILL PROVIDE AN INITIAL CONSULT FOR $90 THAT IS ONLY PAYABLE IF YOU DON’T END UP USING THEM FOR YOUR HOME PURCHASE.
FOR HELP WITH YOUR HOME AND LAND PACKAGE CONTRACT PLEASE CONTACT YOLANDE SNETLER ON (09) 966 3605 / EMAIL: YSNETLER@MCVEAGHFLEMING.CO.NZ
May 3, 2017 Blog