Posts Tagged ‘Local Council’

I’ve Got My LIM Report – Now What?

Your LIM Report has arrived from your local council for the house you are looking to buy – now what! There is a lot of information in a LIM Report and knowing what to look for, knowing what it serious and what is minor, and wondering what is missing can make assessing the LIM Report a daunting task – you went to the time and effort of getting it – make the most of it.

Getting a LIM Report

You may have ordered your LIM as part of working through your conditions on an agreed sale and purchase agreement, or you may not have agreed the sale yet - the house may be for sale by auction or tender and you feel that a LIM is important to have before deciding on a price for the house – whatever the reason - the LIM Report needs to be gone over carefully.

Looking Over Your LIM Report

Read through the summary pages – potential issues are likely to be obvious here. Then dive into the main contents of the LIM. Look for outstanding financial obligations, resource consents, building permits, and related plans. Check that all issued consents have been signed off. For building work from 1992 onwards, check that a code of compliance certificate has been issued for works completed.

Take your personal knowledge of the property, its buildings, retaining walls, land use and the surrounding properties and the area and consider that against the information contained in the LIM. You should ask questions of the seller and the council if you find differences.

Getting Expert Help With the LIM Report Analysis

It is always a good idea to look over the LIM report with your lawyer when you receive it. Your lawyer’s experience and expertise regarding LIMs, combined with your knowledge of the property and your thoughts on what you intend to do with the property, will ensure that the LIM is understood and the full implications of any aspects of the LIM are realised.

Get additional expert help from a valuer or builder (the councils ‘on duty’ building officer is a great free resource), or any other relevant professional if you feel you need it to get the full picture.

What To Do With the LIM Report Results

Consider what impact the findings of the LIM report will have on your enjoyment of the property and the value of the property before you make your decision on whether this is the house for you.

Your LIM Report - What You Need to Know

The Propertytoolbox House Buyers Guide

For all you need to know about LIM’s check out the Propertytoolbox information on LIMs. For everything else there is the Propertytoolbox Home Buyers Guide.

What is in a LIM?

A LIM is a comprehensive report containing everything the Council knows about a property or section and can include:

  • Valuation data
  • Yearly rates payable for the property.
  • If there are any unpaid rates.
  • Any charges for water.
  • Information about Building Permits and Consents for the property.
  • Any information in regards to whether it is a protected or historic building, or site, and if there are any protected trees.
  • Any Resource Consents issued for the property.
  • Any relevant planning issues or planning zones that impact the property.
  • Any Resource Consents issued in the immediate neighbourhood.
  • Information on subdivisions and developments affecting the property and the immediate area.
  • Drainage information relating to both private and public sewer and / or storm water on the property.
  • Special land features including potential erosion, avulsion, falling debris, slippage and possible hazardous substances.
  • Consents, certificates, notices, orders or requisitions affecting the land or buildings.
  • District Plan classifications that relate to the land or buildings.

For further details regarding what a council is required to provide you in a LIM, check out the Local Government Official Information and Meetings Act 1987.

The LIM will be up-to-date and contain a summary of all the information a council has on its files as of the day it is issued.



Why Should I Get a LIM?

If you are putting in an offer on a property, you should make a satisfactory LIM report a condition of the sale. A LIM is very useful in helping you decide whether the land is worth purchasing. From a LIM you can determine whether the property has permits for all its building work, what zoning it has, whether it is free from any restrictions, what proposed local developments may affect the property, and whether the intended use of the land is feasible.

A LIM may contain all sorts of information that can impact significantly on your perception of a house's value. For example, resource consent may have just been issued for a building that will block your view, there may have been a history of flooding or subsidence, the land was previously a landfill site, or alterations to the house may not have a building consent.