Should You Get a Land Information Memorandum (LIM) When Selling Your Home?
What is in a LIM and why are they so important when buying a property?
A brief description from the Property Institute NZ says that a LIM contains information on a property such as plumbing, drainage, water reticulation plans, consents, licenses and permits, etc. However it does not include work that may not be permitted.
Should the vendor get a LIM or the buyer?
This has been long debated. I don't think there there is a 'should' or shouldn't, it is a a matter of if you are the seller, making the home as sell-able to the potential purchasers as possible. If the home next door is listed and is comparable in size as yours but doesn't have a LIM available to prospective purchasers and your home does, the majority of buyers will most likely attend your auction. This is due to the fact that the purchasers have no guarantee of winning the auction and must fork out $295 (approx) for a LIM; a builders report (in some cases) and a valuation report. So if they can save that money, they will most likely attend your auction and not next doors! Basically, it works in your favor to get a LIM before the home is listed. I recommend applying for the LIM 10 working days prior to the home being listed.
Please note, the above only applies if the home is going to auction or tender. If the home is listed with a price or 'by negotiation', then it is expected that the purchaser obtains the LIM.
How to order a LIM?
Simple, head to the Auckland Council website, enter the property address and it will guide you from there.