If the thought of reading a LIM Report doesn’t exactly float your boat, rest assured, you’re not alone. Many of my clients in Nelson real estate are daunted by the prospect of deciphering a LIM – and for a very legitimate reason.
A LIM, or Land Information Memorandum, is a report you order from the Council when purchasing a property. It provides information that can impact your final decision and valuable insights about the property.
Unfortunately, they’re not all that easy to read, so here are 5 tips to help you decipher a LIM report:-
1. Make sure the LIM is current. Sometimes vendors have old reports which you can refer to, but it’s always prudent to order a current LIM, in case their have been any changes since the date of the last one.
2. Read the summary. Often certain things will stand out on the summary pages at the beginning of the document. Highlight anything that looks unusual or worth coming back to.
3. Digest the main section. Pay special attention to the following –
Have any consents have been issued?
Was there any previous flooding?
Are there any warnings or earthquake ratings?
Are there any red flags with neighbouring properties, roads or developments?
What is the zoning?
Are there any outstanding Council fees or unpaid rates?
What was the land used for in the past?
Have any weather tightness issues been reported?
Have there been any drainage issues?
4. Use your own knowledge. You have seen the property, so you will be aware of all the main features.
Check that the property has the right permits and consents for the following:
- Swimming pool
- Retaining wall
- Any recent renovations
If there are any discrepancies between the property and the LIM, discuss them with the Council and/or your agent.
5. Consult your lawyer.
Once you have highlighted areas of concern, ask your lawyer to review the report. This is a worthwhile investment as it will give you peace of mind from a legal perspective.
Consider whether any of the problems highlighted by the LIM could affect the way you personally use the property.
What tips do you have for deciphering LIM reports? I’d love to hear from you – please leave your comments below.