If you are looking to buy a property, it’s strongly recommended that you get a Land Information Memorandum.

Known as a LIM for short, it is a report that contains all relevant information the Council knows about a property or section. It can include historical as well as current information and can be requested for any property, whether it be commercial, rural or residential, with buildings or without.

LIMs typically include the following information:

» Special land features or characteristics such as erosion, subsidence, slippage, flooding and possible contamination

» Information the Council holds on stormwater and sewerage drains

» Rates (including any rates that may be owing)

» Any consents, notices, orders or requisitions affecting the land or buildings. This includes details of building consents and resource consents

» District Plan zoning and any special provisions that relate to the land or buildings

» Resource consents granted for nearby properties

Councils are required by law to produce LIMs upon request within 10 working days. It is a good idea to run with 15 working days when you make an offer for a property so that your solicitor has time to evaluate the LIM and make any follow up inquiries.

A LIM is not the same as a property file request, which has become more common with buyers recently. These only provide partial information and  may be out of date.

If you are buying a house or building, it is a good idea to get a property inspection.

These are carried out by independent specialists, some of whom have professional accreditation from the NZ Institute of Building Surveyors.

They will compare any building work with Council records and advise you of anything that may be unauthorised or incomplete. They will also tell you about repairs that may be required so that you can take these into account when making your final offer.

Some people think a LIM is unnecessary for an empty section, but it will provide important information such as if the property is in a flood zone or registered as a potentially contaminated site.

It will also tell you whether or not the water and wastewater connections have been paid for and what the cost is.

Many people think that because they are buying a “serviced” section the connections have been paid for, however that is not usually the case. The Council charges for these connections when the building consent is issued.

These charges are called Development Contributions and are levied in accordance with Council policy. It includes a contribution for community infrastructure, such as the library, museum and art gallery.

The amount payable for a new dwelling ranges from around $4,900 to $9,400 depending upon location.

Strategy and Compliance Group Manager Jane Donaldson said people should get all information available before purchasing a property.

“It is advisable to speak to a solicitor before making an offer. In the current market people have been trying to make their offer more attractive by bypassing standard checks and we’re seeing more examples of problems emerging where LIMs or property inspections haven’t been part of the purchase process.”