Buying a home is one of the biggest financial decisions most people will make. It is easy to focus on the things you can see, such as the location, layout and condition of the property.

But some of the most important information about a property may be sitting in Council records.

A Land Information Memorandum (LIM) report can help uncover issues, restrictions and potential risks that may not be obvious when you view a property or even from a building inspection.



Understanding that information before you commit to buying can help you make a more informed decision and potentially avoid costly surprises later.

What is a LIM report?

A LIM report is a document issued by the local Council containing information it holds about a particular property.

It provides a behind-the-scenes look at the property and can reveal matters that could affect how you use it, its value, future development plans or, in some cases, insurance.

Importantly, a LIM report and a building inspection serve different purposes. A building inspection looks at the physical condition of the property, while a LIM provides information held by the Council.

For property buyers, both can form an important part of your due diligence before purchasing a property.

What information is included in a LIM report?

The information contained in a LIM varies between Councils and properties, but it may include:

• building consents and whether Code Compliance Certificates have been issued
• resource consents and subdivision approvals
• zoning and planning information
• natural hazards, including flooding, overland flow paths, inundation and landslide susceptibility
• drainage and stormwater information
• protected trees and heritage features
• land stability or contamination information
• outstanding Council notices or compliance matters
• rates information
• proposed public works or developments that may affect the property or surrounding area.

A LIM should therefore be considered alongside your own inspection of the property, your building report and the other information obtained as part of your due diligence.

Why is a LIM important when buying a house?

Sometimes the significance of a LIM is not simply what is recorded, but what that information means for you and your plans for the property.

For example, a LIM may reveal:

• building work that does not have the expected Council approvals
• flooding or drainage issues that could affect the property or insurance
• restrictions that could affect future renovations or development
• outstanding Council requirements
• proposed road widening or other public works nearby.

Some issues may be relatively straightforward. Others could require further investigation, affect what you intend to do with the property or change your decision about whether to proceed with the purchase.

Should you get a lawyer to review your LIM report?

We recommend having your LIM reviewed by an experienced property lawyer.

LIM reports can be lengthy and contain technical information, planning rules and Council notations that are difficult to interpret.

A property lawyer can identify matters that may have legal significance, explain what they mean in practical terms and advise whether anything requires further investigation.

Buying at auction? Get the LIM reviewed before auction day

If you are considering buying a property at auction, completing your due diligence before the auction is particularly important.

Auction purchases are generally unconditional. This means you should arrange for the LIM and other relevant property information to be reviewed before you bid, rather than discovering a problem after the hammer falls.

If you are unsure about anything in the LIM, speak to your property lawyer before auction day.

Can you make an offer conditional on a LIM report?

If you are buying by negotiation rather than at auction, you may be able to include a LIM condition in your Agreement for Sale and Purchase.

This can give you time to:

1. order the LIM from the Council
2. receive and review the report
3. obtain legal advice
4. decide whether you are satisfied with the information before proceeding.

Councils can take up to 10 working days to issue a LIM, although some offer an urgent service. Make sure the timeframe in your LIM condition gives you enough time to obtain the report and have it properly reviewed.

Can you rely on a LIM supplied by the vendor?

A vendor or real estate agent may already have a LIM available for the property.

However, Smith and Partners does not recommend relying solely on a LIM obtained by the vendor or agent, because you may not be able to hold the Council liable if information in that LIM turns out to be incorrect.

Your lawyer can advise you about obtaining your own LIM and the appropriate due diligence conditions for your purchase.

Get advice before you buy

A LIM report is an important part of understanding what you are actually buying.

Taking the time to obtain and properly review the LIM before committing to a property can identify potential problems early and give you greater confidence in your purchase.

Our experienced Property Law team can review your LIM, explain any matters of potential legal significance and guide you through the wider property buying process.

FAQs about LIM reports