The Importance of a LIM Report: What You Need to Know

Written By Kim Hunt

Schnauer & Co deal with many first home buyer enquiries.  Often first home buyers find the conditional stage very overwhelming as there is a lot of new information to process.  In this article, we will attempt to clarify the steps required, associated risks, answer some of the commonly asked questions and provide possible solutions.  We suggest you read this article after reading our earlier article “So, you think you are ready to make an offer?”.

Conducting thorough due diligence before purchasing a property is crucial. A Land Information Memorandum (“LIM”) report, provided by the local Council, offers essential details about the property, including zoning, rates, hazards, and consented works. Skipping getting a LIM report might save money upfront, but it could lead to costly surprises down the line, which may affect the resale value of your home or result in legal and financial issues if unconsented work is later discovered.

Why You Need a LIM Report:

A LIM report helps identify potential issues before purchase, such as:

  • Unconsented work (e.g., unauthorized renovations)

  • Environmental risks (e.g., flooding, erosion)

  • Zoning and land use restrictions

  • Outstanding rates or regulatory concerns

If problems arise, you may have options: negotiate repairs, seek a price reduction, or withdraw from the sale—provided your agreement includes the appropriate conditions.

Building Reports matter too:

If using a friend or family member for a building inspection, remember that an official builder’s report is required if you need to back out due to say structural concerns. Lenders and insurers also require formal documentation.

LIM Reports for Auctions:

Since auction purchases are unconditional, complete your due diligence well in advance. This includes ordering a LIM report early, securing finance, and reviewing all legal documents.

Understanding LIM Report limitations:

LIM reports only contain Council-registered information. If unpermitted work exists but hasn’t been disclosed, it won’t appear in the report. Requesting the council’s property file can help verify whether past modifications were approved.

What If Issues Are Found?

If your LIM report highlights concerns:

  • Consult your legal advisor to determine your options.

  • Consider negotiating with the seller to remedy issues.

  • Check if the defect affects lending or insurance.

  • Investigate legal remedies if the seller failed to disclose known problems.

Should You Rely on the Seller’s LIM Report?

It’s always best to order your own LIM report. Council liability extends only to the original applicant, and agents/vendors often include disclaimers to limit their responsibility. Outdated or altered reports have been an issue in past transactions.

Key Takeaways:

  • Always obtain a LIM report to avoid future legal and financial risks.

  • Review zoning, hazards, consents, and compliance status.

  • Engage professionals for legal and structural advice.

  • Complete due diligence before an auction purchase.

  • If issues arise, act quickly and consult a legal advisor.

Spending a little now on a LIM report can save you from major headaches later. When in doubt, seek professional advice to protect your investment.

If you have any questions, you can contact Schnauer and Co. by getting in touch with Kim Hunt:

Email: Khunt@schnauer.com
DDI:    09 892 0351

First Home Buyers Club Member Offer

If you need legal assistance with Making An Offer, please call or email:

Kim Hunt
Senior Legal Executive
Schnauer and Co Lawyers
Email: khunt@schnauer.com
DDI: 09 892 0351

As a First Home Buyers Club member, you are able to take advantage of the Member Offer 👉

Kim Hunt https://schnauer.com/
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Buying Property With Others: Things To Be Aware Of