Purchasing a property? Do your homework and get a Land Information Memorandum (commonly referred to as a LIM Report) first.
A LIM Report gives details of the records which the local Council holds in respect of a property and any problems known by the Council that affect the property. A LIM Report will provide you with vital information, such as:
(i) Any additions or alterations carried out on the property.
(ii) If the necessary building consents have been obtained and a Code Compliance Certificate issued following final inspection of any work.
(iii) If there is any solid fuel heater in the property and that the necessary compliance certificate has been issued.
(iv) If the property is subject to any heritage designations, landfill or other geotechnical matters which may affect future building works.
If any building on the property does not have a Code Compliance Certificate then it may prove difficult to obtain insurance for that building. If you are arranging mortgage finance to purchase it will be a requirement before you can uplift finance and complete settlement that you have arranged insurance satisfactory to the lender. No insurance will result in a delay in draw down of funds and you could go into default.
The Tauranga City Council currently charges $295.00 for a LIM Report (or $450.00 for a fast track LIM Report). A small investment now can save you thousands in the long run.
By Carly Christie – Solicitor BCH Law
The information contained in this article is provided for informational purposes and should not be construed as legal advice on any subject matter.
