So you think that you've found your dream home, and you've signed a newly minted sale and purchase agreement to show for it. The clock's ticking down on the payment of your deposit, and you're trying to think back to the open home when you last saw the property. Was everything alright with it? Was there an earthquake in the area a few years back? Did the agent mention that a deck was put in three owners ago?
If you have any questions about whether or not some features of the property might be unconsented, or if you're wondering about the area around your new house, then don't fret. There's a way to get those questions answered, and it's called a LIM report.
LIM (Land Information Memorandum) reports are issued by local Councils. Whether your property is a totally new build, just a bit of land, or if it's been on the block for years, we reckon a LIM report is worth a shout.
These reports contain information about:
Rates
Earthquake or flood-prone areas that might affect the property
Whether building features are code compliant
Things that you can do with the property in the future
Whether you have existing consent to sub-divide the property
LIM reports are available from your local property Council’s website and can take between 3 and 10 working days to get to you. It all depends on the Council - Auckland Council lets you order and pay for LIM reports online, and they'll email you a PDF with the report within 10 working days unless you're ordering an urgent copy. Usually your lawyer will make sure that one is ordered for you when you ask them to carry out due diligence, but it's always worth double-checking.
The agent that you've been corresponding with might be more than happy to give you a copy of a LIM report, but if your sale and purchase agreement has a LIM report condition then you should order one yourself. This is because if anything in the report makes you want to cancel your agreement, you'll only have the grounds to do so if the report with that information was ordered in your name.
It can be tempting to save the cost of a LIM report or a property file when buying your first home. We get it - costs add up! Still, a house is a huge commitment and we reckon it's safer to go into it with as much reliable information as possible.
Other ways you can protect your interests as a buyer include pre-settlement inspections and building reports. We can get you in touch with lawyers or builders to arrange those for your dream home - just drop us a line!
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