Free LIM report? Why not!

September 9, 2022

in Property

Looking for a new home is exciting but is sometimes also a stressful experience. There are so many hurdles to cross and due diligence checks that need to be done, so when the seller or real estate agent gives you a bundle of documents at the open home which includes a free LIM report, you may think that’s one less thing you need to worry about, right?

Well, its not that simple.  

First of all, let’s talk about what a LIM report is. A LIM (Land Information Memorandum) report is a report prepared and issued by the relevant territorial authority (council) containing information and records that the council holds about a property.

The contents of a LIM report varies between councils but should generally contain information such as special features of the land, drainage, water supply, rates, building and consent information, and other information which the council considers relevant. This information generally plays an important role in deciding whether or not to proceed with purchasing a property.

The Local Government Official Information and Meetings Act 1987 provides that a LIM report shall be sufficient evidence of the correctness of any information included. Where the information supplied in a LIM report is found to be incorrect, or any information is missing, the courts have found councils to be liable to the individual who ordered and paid for the LIM report.

The crucial part is that a council’s liability is only to the individual who ordered and paid for the LIM report. If you did not order the LIM report yourself (i.e the seller or agent provided it to you), the council may not be liable where information is incorrect as the council does not owe you a duty of care. It is therefore very important for you to order the LIM report yourself, rather than rely on the LIM report you were given at an open home.

It can be tempting to forgo the process of ordering your own LIM report to reduce costs, especially if you are unsuccessful in your purchase and have to go through the process multiple times, however given the risks involved, the cost of obtaining your own LIM report for your protection is just a small price to pay.

If you require any advice or further information on the matters dealt with in this publication, please contact the lawyer at Farry Law who normally advises you, or alternatively contact:

Rula Alemdar
09 353 6675

The information contained in this publication is intended as a guide only.  It does not constitute legal advice and should not be relied upon as such.  Professional advice should be sought before applying any of the information to particular circumstances.  While every reasonable care has been taken in the preparation of this publication, Farry Law does not accept liability for any errors it may contain. 

Previous post:

Next post: