LIM CRUCIAL INFO

Searching for a new home can be filled with excitement, yet it often brings along its fair share of stress. Navigating through numerous hurdles and ensuring thorough due diligence can feel overwhelming. So, when your real estate agent hands you a complimentary LIM report, you might breathe a sigh of relief, thinking it's one less task on your list. But is it really?

I URGE you to read “Crucial” below. This is important and most people don’t know this… 

First of all, let’s talk about what a LIM report is.

• A LIM (Land Information Memorandum) report is a report prepared and issued by the relevant territorial authority (council) containing information and records that the council holds about a property.

Crucial: PLEASE READ

• The crucial part is that a council’s liability is only to the individual who ordered and paid  for the LIM report. If you did not order the LIM report yourself (i.e the seller or agent provided it to you), the council may not be liable where information is incorrect as the council does not owe you a duty of care. It is therefore very important for you to order the LIM report yourself, rather than rely on the LIM report you were given at an open home.

• The Local Government Official Information and Meetings Act 1987 provides that a LIM report shall be sufficient evidence of the correctness of any information included. Where the information supplied in a LIM report is found to be incorrect, or any information is missing, the courts have found councils to be liable to the individual ordered who ordered and paid for the LIM report.

• The contents of a LIM report varies between councils but should generally contain information such as special features of the land, drainage, water supply, rates, building and consent information, and other information which the council considers relevant. This information generally plays an important role in deciding whether or not to proceed with purchasing a property.

• It can be tempting to forgo the process of ordering your own LIM report to reduce costs, especially if you are unsuccessful in your purchase and have to go through the process multiple times, however given the risks involved, the cost of obtaining your own LIM report for your protection is just a small price to pay.