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Understanding Your LIM Report Before You Buy or Build

A LIM report is one of the most important documents in any NZ property transaction. Here's how to read one and what to watch out for.

Understanding Your LIM Report Before You Buy or Build

A Land Information Memorandum (LIM) report is one of the most powerful tools available to NZ property buyers and builders — yet many people skim through it without fully understanding what they're reading. Whether you're purchasing an existing home, a section, or planning a new build, getting to grips with your LIM report before you commit can save you from costly surprises down the track.

What Is a LIM Report?

A LIM report is an official document issued by your local council that summarises all the information the council holds about a specific property. It's compiled under the Local Government Official Information and Meetings Act 1987, and councils are required to issue one within ten working days of a request (or five working days if you pay an urgency fee).

The report draws together records from multiple council departments — building, planning, drainage, and rates — into a single document. It is a snapshot of what the council knows at the time of issue, which is an important distinction: it does not capture everything that has ever happened on a property, only what has been formally recorded.

What Does a LIM Report Contain?

While the exact format varies between councils, a typical LIM report will include:

  • Building consents and code compliance certificates (CCCs) — a record of consented building work and whether it received a final CCC
  • Resource consents — any planning approvals granted for the property
  • Rates information — current rates and any arrears
  • Drainage and stormwater — location of public drains, easements, and any known flooding or overland flow paths
  • Hazards — land instability, contamination, erosion risk, or proximity to fault lines
  • Special land features — heritage overlays, HAIL (Hazardous Activities and Industries List) status, or coastal hazard zones
  • Zoning — what the property is zoned for under the district plan
  • Any notices, requisitions or orders — such as outstanding work required by the council

Understanding each of these sections is critical before you sign a sale and purchase agreement or lodge a building consent application.

Key Red Flags to Watch For

Not everything in a LIM report is cause for alarm, but certain entries deserve close attention:

Consents Without CCCs

If building work has a consent on record but no code compliance certificate, it means the council never signed off that the work was completed to the required standard. This is one of the most common issues found in older NZ homes. Unconsented or non-compliant work can affect your ability to get insurance, finance, or on-sell the property. Always cross-reference the consent history against what you can physically see on site.

Drainage and Flooding Notations

Overland flow paths and flood-prone land notations can significantly affect what you're able to build and where. Check whether any drainage easements cross the property — these can restrict where you place structures.

Hazardous Land or Contamination

HAIL sites (former dry cleaners, petrol stations, orchards, etc.) may require soil testing before development. Your council's LIM will flag if the property is on or near a HAIL site.

Outstanding Notices or Orders

Any unremedied notices from the council — such as a requirement to fix a retaining wall or address drainage — become your problem the moment you settle. These should be negotiated as conditions of sale.

LIM Reports and the NZ Building Code

The LIM report is closely tied to the NZ Building Code, administered by MBIE Building Performance. When you're planning a new build or significant renovation, the LIM helps you understand what constraints exist on the site before you even engage an architect or designer. For example, if the LIM shows the land is in a flood hazard area, your building consent application will need to address how the design meets Building Code clause E1 (surface water).

For buyers of existing homes, the LIM helps identify whether previous owners carried out work that required — but didn't obtain — building consent. BRANZ research has consistently highlighted unconsented work as a significant issue in the NZ housing stock, particularly in homes built or renovated between the 1970s and early 2000s.

How to Order a LIM Report

You can order a LIM report directly from your local council, either online or in person. Costs and turnaround times vary by council, but as a guide, standard LIM reports typically cost between $200 and $400, with urgency fees on top. Your real estate agent or solicitor can also order one on your behalf.

Always order the LIM yourself or through your solicitor — don't rely solely on a vendor-supplied LIM, as it may be out of date.

Comparing LIM Report Scenarios

SituationWhat to Check in the LIMAction
Buying an existing homeConsent history, CCCs, drainageGet a building inspection alongside the LIM
Buying a bare sectionZoning, hazards, services, easementsConfirm buildability with your designer
Planning a new buildFlood/hazard overlays, drainage, heritageFactor constraints into your design brief
Buying an investment propertyRates arrears, outstanding noticesNegotiate remediation before settlement

When to Call a Professional

A LIM report tells you what the council knows — a registered building inspector tells you what's actually happening on the ground. These two documents work best together. A building inspector can:

  • Identify physical signs of unconsented work that the LIM may not have flagged
  • Assess whether work recorded in the LIM appears to have been completed correctly
  • Provide a written report you can use in sale negotiations or insurance applications

Look for inspectors who are Licensed Building Practitioners (LBPs) or members of a recognised inspection body. You can find qualified local building inspectors on tradedirectory.co.nz.

If the LIM reveals drainage concerns, a drainlayer or engineer may also need to be involved. For any electrical or plumbing work flagged as potentially unconsented, only a licensed electrician (registered with the EWRB) or licensed plumber/drainlayer (registered with the PGDB) can legally assess and remediate that work.

Realistic Timeline for Getting a LIM

  • Order the LIM: As soon as you're seriously interested in a property — ideally before making an offer, or as a condition of your offer
  • Standard processing: Up to 10 working days from the council
  • Urgency processing: Up to 5 working days (additional fee applies)
  • Review with your solicitor: Allow at least 2–3 days to read and discuss the report
  • Building inspection: Book this to run concurrently with the LIM, not after

Building in enough time to properly review a LIM is essential. Rushing this step is one of the most common mistakes NZ buyers make.

Budgeting for Due Diligence

As a rough guide only, your pre-purchase due diligence costs might include:

  • LIM report: a few hundred dollars (council fee)
  • Building inspection: varies by property size and inspector, but typically a few hundred dollars
  • Solicitor review: part of your standard legal fees

Think of these costs as insurance — they are a small fraction of what an undiscovered problem could cost you after settlement.

Frequently Asked Questions

Is a LIM report compulsory when buying a house in New Zealand?+

No, a LIM report is not legally required, but it is strongly recommended by solicitors and building inspectors. It is one of the most effective ways to uncover council-recorded issues — such as unconsented building work, drainage problems, or hazard notations — before you commit to a purchase. Most experienced buyers make their offer conditional on a satisfactory LIM report.

What's the difference between a LIM report and a building inspection?+

A LIM report is an official council document showing what the council has on record about a property — consents, drainage, zoning, hazards, and rates. A building inspection is a physical assessment carried out by a qualified inspector who visits the property and checks its condition. The two complement each other: the LIM tells you the paper history, while the building inspection tells you the physical reality. Ideally, you should get both.

What happens if the LIM shows building work with no code compliance certificate?+

A consent without a code compliance certificate (CCC) means the council never confirmed the work was completed to the required standard. This doesn't automatically mean the work is substandard, but it does mean you can't be certain. You should have a building inspector assess the work, and you may need to apply to the council for a certificate of acceptance (COA) or have the work remediated. This can also affect insurance and mortgage lending, so discuss it with your solicitor before proceeding.

How long is a LIM report valid for?+

A LIM report reflects the council's records at the date it was issued. There is no formal expiry date, but the information can become outdated quickly — especially if building or resource consent applications are lodged after the LIM was issued. As a general rule, if a LIM is more than a few months old, consider ordering a fresh one before settlement, particularly in active development areas.

Can I use the LIM report when planning a new build on a section?+

Absolutely — in fact, reviewing the LIM before purchasing a section or engaging a designer is highly recommended. The LIM will reveal zoning rules, any hazard overlays (such as flood or instability zones), easements, and drainage constraints that could affect what you're able to build and where. Sharing the LIM with your architect or designer early in the process helps avoid costly redesigns later. Always confirm planning constraints with your local council as well, since district plan rules can change.

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