It’s a common misconception that you don’t need a Land Information Memorandum (LIM) report when you buy bare land, or when the house and buildings have been signed off by your local authority. A LIM is provided by the local authority and contains information it holds on the property. The contents of the LIM vary, but usually include details of the following:
- Features of the land such as erosion, flooding, subsidence or the presence of hazardous substances
- Storm water and sewage drains
- Water supplies
- Rates and valuation details
- Building information – building plans, consents and certificates and leaky home notifications
- Restrictions on the use of the land or buildings
- Historic buildings or sites or wahi tapu (sacred) sites
- Resource consents issued for the property, or for neighbouring properties – for example, subdivision consents or water permits
- Sewage tank and swimming pool information, and
- Motorway proposals affecting the property.
You can include a LIM condition in your Agreement to purchase the property. If the Agreement contains the standard LIM condition then you must apply to the local authority for the LIM within three working days of signing the Agreement, or we can do this for you. The LIM must be provided within 10 working days of your application. The standard LIM condition gives you 15 working days to approve the LIM report. If you want to object to something in the LIM, it’s vital to notify the vendor on or before the 15 working days are up, because if you do nothing you are deemed to have approved the LIM.
If there’s something in the LIM you don’t like, this doesn’t give you the automatic right to end the Agreement. If the vendor cannot, or will not, remedy the matter, then you will be able to cancel the Agreement. In most cases the LIM report doesn’t contain information that causes any concern, but it’s a useful record of the property to keep. Considering the substantial investment involved, the LIM report can provide valuable peace of mind when you’re buying land.