Why you should get a LIM

What actually is a LIM? 

If you are on the property hunt you will no doubt have already grappled with the size of the commitment that you are about to make (think a lot of zeros and thirty-year debt).  It’s hardly surprising that for most, buying a home is the biggest financial decision they will ever make. 

With so much at stake, buyers need as much good information as possible before going ‘all in’ in a property – after all, nobody likes buying a dud.  

 A common source of buyer information is a LIM.  If you have never heard of a LIM or if you have heard but have no clue what a LIM actually is, then check out the below. 

 What is a LIM? 

LIM stands for “Land Information Memorandum”.  If you’re still not feeling much wiser, we don’t blame you… 

 As a quick snapshot, a LIM is a report prepared by the council and that outlines all of the information that they have on their files relating to the property. 

 What information does a LIM include? 

Some of the information that you will in a LIM includes: 

 1.              If there are outstanding rates (note – the standard sale and purchase agreement requires these to be cleared on settlement); 

 2.              Zoning Details – this outlines what rules apply to the property and how it can be used; 

 3.              Details of known risks (like flooding, erosion, soil contamination, etc) or heritage protections relating to the property; 

 4.              Information on services linked to the property (sewage, drains and water) – these are shown on a handy aerial map; 

 5.              Details of all building consents, certificates or requisitions issued by the council and any unconsented works that the council knows about; 

 6.              Other details or notices that the council thinks could be of interest. 

 So a LIM is basically a way of making the Council do your research on the property and them confirming that everything is good and that a property is worth buying, right?  

Not so fast…  

A LIM only includes details of things that the Council knows about - it will not include details of things that the Council is unaware of or that were never reported to it (think unconsented building work or renovations).   

The most important part of a LIM tends to be what is not included in in it and we always recommend buyers compare the information shown in the LIM against their knowledge of the property – are there recent renovations (add ons and sleep outs, retaining walls, fire places, decks etc) that are not reflected in the LIM?  If so, it could be worth asking more questions…  

How do you get a LIM? 

You need to order a LIM from the council where the property that you are buying is located. 

In New Plymouth LIMs can be ordered online through the NPDC’s website.  Some other Councils also have online ordering services or if not, you will need to pop into the relevant Council to order one.  

Costs vary across the country but in New Plymouth an urgent LIM costs $400 and takes seven business days to process, or a standard LIM costs $280 and takes ten business days to process. 

Still have questions or wanting FREE advice that is specific to your situation?

For a limited time, we are offering a FREE one-on-one consultation with one of our expert property lawyers through our online scheduler.  All of our consultations can be carried out in person or via Zoom and carry absolutely no obligations for you to engage with us – we will even throw in a free coffee if we meet in person.