It is sound due diligence to order a LIM report when intending to purchase a property. Many Sale and Purchase Agreements have a clause relating to a LIM to allow for consideration before the agreement goes unconditional.
If you purchase a property that previously had building works completed without council consent, or where a final code of compliance certificate has not been obtained, you could be liable for rectification or removal of the unlawful structures. Ordering a LIM report for a property you intend to purchase means you can confirm that any work on the property was consensual. In the case where a LIM reveals there was no consent for work done, you can either negotiate with the seller for them to rectify the issue, or back out of the purchase.
Similarly, a LIM report may reveal potential issues such as flooding and instability, and other natural hazards, which may influence the property value, and change your decision to purchase the property.
Your legal practitioner can order LIM reports through InfoTrack New Zealand.
If you are a legal practitioner, you can save time by ordering all your property searches, including LIMs, in one platform by using InfoTrack New Zealand.
