A Land Information Memorandum (LIM), is a report containing current information that the local authority has about a property. LIM reports can include:
- Storm water and sewage drains information
- Special characteristics of the land such as potential erosion, falling debris, hazardous contaminants or slippage that is known to the authority
- Information regarding drinking water supply
- Any permits, consents, certificates, orders or requisitions that affect the land issued by the local authority or the building consent authority
- Whether any rates are owed on the land or if it is subject to a levy
- Whether there is any Heritage New Zealand protection
- Any conditions or information regarding the use of the land
- Or any other information the local authority considers relevant.
LIMs are useful documents but you should keep in mind the report only includes what is in the current records of the local authority. LIMs do not contain information regarding cross leasing or development of the property, conditions imposed on developers, information on what can be built on the land, services available to the land and any changes to town planning provisions or whether the land is subject to a government right of acquisition. As part of your due diligence process you should strongly consider obtaining a copy of the title, a building report, EQC information and a toxicology test.
How much will a LIM cost?
The fee for obtaining a LIM report is generally between $250 – $450 depending on which council the property falls under and whether you use a fast track/urgent service or a standard service. Fast track services are useful if you don’t have much time before an auction or confirmation date. We recommend paying the one-off cost for a LIM, it may alert you to something fundamentally unsound about the property and save you from the costly exercise of purchasing a problematic property. Note that if you do not obtain the LIM yourself (perhaps the agent has supplied one) you will not be able to pursue the council if it contains any errors.
How do I get a LIM?
One of our property experts can order a LIM for you or you can get one directly by applying through your local council or district’s website. We can review your LIM to help identify any issues.
If you would like some more information on the above you can contact Catherine Hattaway firstname.lastname@example.org at Parry Field Lawyers.