What is a LIM report?

A LIM (Land Information Memorandum) is a council-issued report that includes key information about a property, such as consents, zoning, and known council records.

Who orders the LIM report and how long does it take?

Buyers typically order it from the local council. Timeframes and fees vary by council, so build this into your due diligence period.

What are common LIM red flags?

Examples include unconsented work, outstanding compliance issues, notices, hazards, or information that conflicts with what is being sold or represented.

Do banks require a LIM report?

Not always, but it supports due diligence and helps avoid surprises. Some lenders may require extra checks depending on the property and risk factors.

Is a LIM report the same as a building report?

No. A LIM is about council records and property information, while a building report is a physical inspection of the home’s condition.

Should I make my offer conditional on a LIM report?

Many buyers include a LIM condition so they can review the report and decide whether the property’s risk profile is acceptable before going unconditional.

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

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. These can include unconsented work such as unauthorised renovations, environmental risks like flooding or erosion, zoning and land use restrictions, and outstanding rates or regulatory concerns. Any of these findings could affect your decision to proceed with the purchase or influence the terms you negotiate.

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.

Learn More: Why Building Reports Are Essential for First Home Buyers

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.

Important: At auction, there are no conditions. You must complete all due diligence - including obtaining a LIM report, building inspection, and finance approval - before bidding.

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, you should consult your legal adviser to determine your options. Consider negotiating with the seller to remedy the issues before settlement, and check whether the defect affects your ability to obtain lending or insurance. If the seller failed to disclose known problems, you may also want to investigate potential legal remedies with your lawyer.

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.

Warning: Never rely solely on a seller-provided LIM report. Order your own to ensure you have the most current information and full legal protection.