Land Information Memorandum ("LIM REPORT")... Do I really need to go through the cost and trouble of securing a LIM Report before committing to purchase a property?
Checking the LIM Report
If you are in doubt as to whether or not there is any need to secure a LIM report or building report before purchasing a property, yet another Court case has showed just how expensive NOT getting one can be.
In this Court case, the purchasers were found to be negligent for not securing a LIM or an inspection from a certified building inspector on a property which was later found to be a leaky home. This was despite the fact that the Council should never have issued the Code Compliance Certificate (“CCC”) in the first place.
The Court found that purchasers may be negligent if they fail to secure a LIM and inspect the Council’s records prior to purchasing a property. This also applies to the need for engaging a certified building inspector to conduct a pre-purchase inspection and provide a report on a property. The Court said the purchaser cannot blindly rely on the fact that a Council has issued a CCC as proof that a building is not leaky or that there are no irregularities with the work done.
Because of this, plus some other factors, the Court reduced the award in favour of the purchasers by 75%, so they only received one quarter of their claim and lost about $1.5 million dollars as a result.
Read on to find out more about LIM Reports and the 'Property Bag' below...
Can you rely on a copy of the LIM Report supplied by an agent or the vendor?
There has been yet another recent Court case on this, with the Court holding that if the LIM Report supplied by the Council is not actually addressed to the person relying on it, then the Council is not liable if it is wrong! We seriously suspect that this decision is wrong in law and may well be overturned one day but, regardless, that decision was expensive for the parties involved in that case and it is therefore safer, to obtain a new LIM addressed to you as the purchaser.
The 'Property Bag'
In addition it is usually worth also obtaining what is sometimes called the “Property Bag” which includes the full Council file on the property. The cost is minimal and the extra information may be very helpful, particularly with older homes which have been renovated several times.
Purchasing a property is probably the largest single investment you will ever make. Get in touch with us for tailored advice and for more free guides about buying property.
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The information posted on this website is prepared for a general audience, without investigation into the facts of any particular case. This information is no substitute for legal advice and does not create a lawyer-client relationship; you are advised to consult with a lawyer on any legal issue.