What is a LIM report?

What is a LIM report?

The key to buying your first home is information. You can never know too much about a property, especially one that you’re planning on living in. One easy way to learn more about a potential purchase is to get a Land Information Memorandum (LIM) report. We’ll tell you why you need a LIM report, and how to get one.

Think of a LIM report as a handy collection of all the information that the local city council will have on the property you’re wanting to buy. This includes things like:

- What zones your property falls into and relevant district plan information

- Rates valuations

- Resource and building consents

- Code compliance certificates

- How it may be affected by the surrounding land and buildings

If you’re considering buying a home in a suburb that you’re unfamiliar with, then getting as much property information from the relevant council is one way to give yourself some peace of mind. LIM reports are perfect for this; they contain far more details about a piece of land than property files.

How much is a LIM report?

The cost of acquiring a LIM report is different depending on which region your property falls into. Each local authority has its own LIM application, processing fees and costs for preparing property information.

You will often have the option of ordering either a Standard LIM or an Urgent LIM. The difference between the two is that the Urgent LIM will have a much shorter processing time but be more expensive.

A Standard LIM report from Auckland Council takes up to 10 working days to be issued and costs $307, while an Urgent LIM takes up to 3 working days to be issued and costs $415. The Wellington City Council also lets you order fast track LIMs for $499.50, though fast-tracking is assessed on a case-by-case basis after ordering a report from them.

You don’t have to wait for your conveyancer or lawyer to fill out a LIM application form for you; applying for a LIM online is pretty easy. Additionally, real estate agents may be able to provide you with a copy of a property’s LIM report if you have expressed interest.

Always make sure that you’re relying on the most up-to-date information for the property – if the report provided by an agent is a few years old, we recommend ordering a new LIM report to cover your bases.

What to look for in a LIM report

There’s quite a lot of jargon in LIM reports and enlisting the help of a property expert is the best way to make sure that you’re not missing out on important information. We always recommend that a conveyancer or lawyer reviews your LIM report for you once you’ve obtained it.

There are going to be certain things that you’ll want to keep an eye out for as a first-home buyer. Things you’re going to want to look for in a LIM report might include:

- Whether your property is located in a flood-prone area - Wind hazards and the status of soil erosion at the property - If there are things on your property that cannot be removed i.e. protected species of flora - Resource consents

You’ll want to look out for anything that will affect your immediate and future plans for the property. For example, if you’re wanting to subdivide in the future then it could be useful to know if your property already has the consents needed.

If you’re wanting to do a total revamp of your garden, you’ll also want to get a LIM report to make sure that you can actually dig up any huge trees that might be kicking around.

Do I need a LIM report for a new build?

You might think that LIM reports are only useful for properties that have some history to them. However, even if you’re pursuing a Kiwibuild home or a new build, a LIM report is still a prudent purchase.

This is because when you buy a property, you aren’t just buying the building that makes up the home you’re going to live in - you’re also buying the land that the house sits on.

A LIM report doesn’t just tell you about any construction work that has been carried out on buildings on a piece of land. As covered above, it has important information about the land itself: whether the soil might be contaminated, what you can or can’t do with the land you’re buying, and more.

Buying a new build does not exempt the land underneath your potential home from having any potential issues, so we would always recommend that you get a LIM report to cover all your bases.

Have other burning questions about the process of acquiring your first home? Check out our first home buyers hub, with advice on everything from sale and purchase agreements to financing.