What is a LIM report? A LIM report is short for ‘Land Information Memorandum’. Think of it as a warrant of fitness for a house. There is a cost involved and it is well worth it for peace of mind and here are a few reasons why.
Although there is a cost involved with obtaining a LIM report and you may well not end up buying the property, is a brilliant for peace of mind. Not only does it reduce a number of risks it can also tell you about the history of the house. A residential LIM report will cost you around $285 and take up to 10 working days to be completed. Some reports will contain loads of information where others may be limited, it’s all up to the history of the property.
A LIM report may include information about the following:
- Consents and notices about the property and even neighbouring properties.
- Zoning (what you can and cannot do with the land).
- Potential erosion’s, contamination or flooding.
- Street and sewerage water pipes, where they run.
- Structural requirements.
- Rates details.
- Protected or heritage buildings and tress.
- Scheduled roads and utility development which may impact the site.
- Details of resource and building consents issued on this property.
- Any other information the Council deems relevant.
Your report will let you know if a compliance certificate has been issued for any alterations or construction work, the property you’re looking at may have a wonderful view but consent has just been given for a building in front of you that may impact this. If there has been some work done recently that is not shown on the report it could mean that it does not have consent and will need to be rectified. A new fireplace may have been installed, by professionals and done correctly, but not have consent. If this fireplace should cause a fire, your insurance will most likely be invalid as a result of its no consent. Compare what is actually on the property to what is on the LIM report, if there is a recent addition or a car port or other structure that is not showing, you might need to look into if it needs compliance. It is also helpful if you are intending on any alterations yourself later on or if you might like to subdivide in the future.
It may also be useful in showing you areas of concern in heavy flooding, where water is likely to pool, without the LIM you would not normally know about these types of issues. It may not have any impact on you moving in at all, or you may have wanted to add a garden shed to the property right where this will happen. Either way it is better to be well informed to make an accurate decision.
A LIM report can also provide some protection, if any problems are discovered and your purchase agreement is subject to the approval or a LIM report, you can ask that these are fixed (if possible), or it might result in you wanting to cancel the contract. A property lawyer will be able to advise you on your legal options and help you work through to a a good solution.
Your report will not show you every piece of information in regards to the property; it may not contain contamination reports held by various regional councils not the verification of survey measurements. This is up to you to seek expert reports where appropriate.
The LIM report will give you a great snap shot of the property, its history and anything important you need to know about where possible. Better to be safe than sorry. A few hundred dollars spend now could save you thousands in the long run.
About the Author: The above article on What is a LIM report was written and provided by Brent Palmer, a local leader in the field of Richmond and Nelson Real Estate sales, marketing, advanced technology for home selling, and social media. You can contact Brent Palmer here, or at 027 544 9921.
He has helped many people buy and sell homes in the Nelson, Stoke and Richmond areas for years, and would love the opportunity to help you as well.
Thinking of selling your home? I have a real passion for helping people sell their homes in our Nelson and Tasman Region, as well as the marketing, social media & advanced technology for home selling that goes along with it. I’d love to have the opportunity to sit down with you discuss how we can work together to get you the best price.
I help people buy and sell real estate in the following Nelson and Tasman towns & neighbourhoods: Wakefield, Brightwater, Hope, Appleby, Redwood Valley, Mapua, Stoke, Tahunanui, Atawhai and of course, Richmond and Nelson City. Connect with Brent on Facebook and pretty much everywhere else.
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