Firstly... what is a LIM?
A LIM is a comprehensive report that has all relevant information the Council knows about a property or section.
LIM information includes:
- any special feature of the land Council knows about including the downhill movement, gradual sinking or wearing away of any land, the falling of rock or earth, flooding of any type and possible contamination or hazardous substances
- information the Council holds on private and public stormwater and sewerage drains
- rates information
- any consents, notices, orders or requisitions affecting the land or buildings
- District Plan classifications that relate to the land or buildings
- any other classifications on the land or buildings notified to the Council by network utility operators in relation to the Building Act 2004
- any other information the Council deems relevant.
Surely the buyer can just get that as part of their conditions??
Yes, that is true... they could... but we almost always encourage our vendors to get a LIM report pre-market and take that hassle away from the buyer!
A lim report can take 10-20 working days to arrive and that length of time for a condition is very long... and for a cost of $323.50, is simply not worth the risk. That can be 10-20 working days for the buyer to change their mind... not so much wait for a LIM.
I've got the LIM, what should I take note of before I release this to my agent / public?
1) Seek a Lawyer if you are not sure
Most good agents will help you read through it all and give you the important points, but as our support cannot be a substitute for legal advice, you should always seek the help of a lawyer should you be unsure about the contents of a LIM report. As always, make sure you read it yourself as well.
2) Read the quick reference guide
This should be in the first 7-8 pages and is an area that you should look at, for a quick overview on the property. Read this section carefully, it will highlight anything you need to delve deeper into in the rest of the LIM Report.
The specials feature page is also a good summary page to look at (reference image below):
There is an entire section on the LIM report that outlines all the consents that has been granted, completed, rejected, uncompleted etc. This is particular useful if the property has had renovations that may or may not be permitted, these can include, but not exclusively to:
- Changing Garage into a Bedroom
- Extending / building a deck
- Safety railings absent or not high enough
- Extension of the house, garaging, etc
- Change of purpose of a room, bathroom to bedroom, etc.
Have a good look of this, and work out what may be permitted, if a consent is absent for some work that you know should have gone through council, there may be a chance it is not permitted and you should seek legal advice on it.
Buyers will be particularly interested if things are consented or not consented