What is a LIM Report and why we recommend purchasers get one.

So, what is it?

A LIM Report provides a summary of the information that the local Council currently holds relating to the property itself as well as information about the surrounding area and district.  It is obtained by application to the Council and payment of the applicable fee.  Often a LIM Report will be ordered by your solicitor as part of the purchase conditions, but members of the public can order LIM Reports as well.

Council can take up to ten working days to produce a standard LIM Report.  Some Councils offer an urgent LIM which can be done is a shorter timeframe but they do charge extra for this service.  When including a LIM condition into your Agreement, make sure that you allow sufficient time for the LIM to be ordered and received, and for your lawyer or legal executive to check this over for you.

What’s in it?

A LIM does not include all information that there is about a property.  For example, if Council has not been notified of any alterations to the property, it won’t appear in the LIM.  Different Councils include different things in their LIMs but legislation outlines the mandatory information that must be included in all LIMs.

A LIM Report can include information about some or all of the following:

• Relevant local zoning Information
• The current rates being charged for the property;
• Drainage (sewer, stormwater);
• Any special land features (erosion or flooding)
• Details of any heritage buildings or trees on the property
• Details of any resource consents, land use consents, permits, that the Council holds

A LIM Report can also include information that is relevant to the surrounding area such as any Plan Changes or consents issued in the vicinity.

Can’t I just use the LIM provided by the agent or vendor?

Often a vendor or their agent will obtain a LIM as part of the marketing package for the property and they will hand out copies to prospective purchasers.  Whilst this may appear to be helpful and a cost-saving for a potential purchaser, we do recommend that a purchaser obtains their own up-to-date LIM, that is addressed to them personally for the following reasons:

• A LIM is only valid for the date is it issued – Council records can change and new information added at any time.  Relying on a LIM that has been produced in the past would mean that new information that Council has become aware of, won’t be in that older LIM.
• A LIM is only valid for the person/people it is addressed to.   The reason for this is that if the LIM is found to have information that is incorrect, and a purchaser has relied on the information in the LIM when choosing to go ahead with the property purchase, they may have no comeback on Council for this incorrect information.

But I’m only buying bare land?

Even for a bare land property, a LIM is still useful to obtain.  The only difference between a bare land LIM and a LIM for a developed property is that the LIM for the developed property will include details about any improvements to the property (for example, any dwelling or other structures).

If you require any legal advice about LIM Reports, please contact one of Harkness Henry’s specialists in the Commercial/Property Team.

Jo Wadsley is a Registered Legal Executive and Fellow of the NZ Institute of Legal Executives who is a specialist in the Commercial/Property Team.  Jo can be contacted on 07 827 5111 or [email protected]

This article is current as at the date of publication and is only intended to provide general comments about the law. Harkness Henry accepts no responsibility for reliance by any person or organisation on the content of the article. Please contact the author of the article if you require specific advice about how the law applies to you.