Pier Law recommends that all purchasers order a Land Information Memorandum (LIM) report when purchasing a property in New Zealand. A LIM is issued by the local Council, and it reveals vital details about a property, including zoning, building consents and Code Compliance Certificates, drainage, natural hazards, and rates. Whether you’re purchasing a home or bare land, this report provides insights to help you make informed decisions. It’s crucial to order your LIM as early as possible, as it can take the Council up to 10 working days to collate and produce a standard LIM. Some Council’s offer an urgent LIM service where they can produce the LIM in a shorter amount of time, however at a higher cost. What a LIM Report Includes LIM’s detail information that the Council holds on various aspects of the property. Often this includes: Building Compliance: Ensures all structures are consented and meet legal standards. Natural Hazards: Identifies risks like flooding, erosion, or unstable land. Rates: Details the current rates being charged for the property (note these normally increase at the beginning of the rating year). Zoning and Restrictions: Highlights zoning and/or other restrictions that could impact future renovations or developments. Services: Details the services connected to the property including water, and electricity. Also provides detail on drainage of sewer and stormwater. Heritage Classifications: Records whether there are any heritage buildings or trees on the property. Consents: Lists any resource consents, land use consents, or permits the Council holds relevant to the property. Why Buyers Should Order Their Own LIM Reports While sellers or real estate agents may provide a LIM in the information pack for the property, it’s always better to commission your own for these reasons: A LIM is only correct up until the date it is issued: A LIM provided by a vendor may be outdated. Ordering your own ensures access to the most current details from the Council. A LIM is only valid for the person/entity it is addressed to: If you rely on a LIM provided by a vendor or a real estate agent, you could not hold the Council liable for any errors or omissions in the LIM as you do not have the contractual relationship with them. Why a LIM Report is Worth the Cost Investing in a LIM report minimizes risks, offering peace of mind and protecting your financial investment. It can help you avoid costly surprises, such as unconsented structures or resource consents relating to other properties in close proximity, that may affect your wish to purchase the property. Talk to Us About Your Next Property Purchase Our experienced team specialises in guiding clients through property transactions. Contact us today to learn how we can support you through every step of your property journey.
