A Land Information Memorandum, usually shortened to LIM, is a report issued by a local council that summarises the information the council holds about a particular property. An inspector’s report is something else entirely: a physical assessment of the house by someone who walks through, over and under it. Buyers in New Zealand often hear both terms in the same breath, and it is easy to assume they overlap more than they do.
In practice, the two documents answer different questions. One follows the paperwork trail; the other looks at timber, iron, concrete and pipes. Relying on one without the other leaves a gap.
What a LIM tells a buyer
A LIM draws on council records. Depending on the council and the property, it can include:
- building consents and code compliance certificates issued for work on the site
- outstanding notices, such as a notice to fix
- zoning under the district plan
- known hazards, for example flood-prone land, erosion, subsidence or contamination
- rates information, including any amounts owing
- stormwater and wastewater details the council has on file
What a LIM cannot do is confirm that the house is in good shape. It reflects what has been reported to and recorded by the council, nothing more. Unconsented work will not appear, because by definition the council was never told about it. A sunroom added without a permit, a garage turned into a bedroom, or a bathroom moved to a different part of the house may all be missing from the record.
A LIM is also a snapshot of what the council holds on the day it is issued. Councils take a little time to produce one, so buyers working to a tight condition date tend to order it straight away.
What the inspector looks at
An inspection deals with the physical state of the dwelling. A qualified inspector checks the roof cladding, flashings and spouting, the roof space, exterior walls and joinery, decks and balconies, the subfloor or slab, interior linings, wet areas, visible plumbing and drainage, and the site itself, including retaining walls and ground slope. Moisture readings are commonly taken in areas at risk of leaks. Many inspectors here work to NZS 4306:2005, which sets out what a residential property inspection should include and how findings should be reported.
A thorough building report describes defects, explains their likely significance and flags where further investigation by a specialist, such as an electrician, plumber or structural engineer, would be sensible. It also records limitations: areas the inspector could not reach, furniture that blocked access, or weather that made a roof unsafe to walk on.
There are things an inspection does not set out to do. It is not a valuation, so it will not say whether the asking price is fair. It is not a council compliance check, so the inspector will not usually confirm whether past work was consented, though they may point out alterations that look recent or unusual. Electrical, gas and drainage systems are generally assessed visually, with specialist testing recommended where something looks wrong. Understanding that scope helps buyers judge which questions belong with the inspector and which belong with the council, a lawyer or a tradesperson.
Where the two meet
The most useful insight often comes from reading both together. If the inspector finds a converted garage with plumbing and a wardrobe, and the LIM shows no consent for that work, the buyer has a concrete issue to raise. Unconsented work can affect insurance, future resale and, in some cases, safety. It may be possible to regularise it through a certificate of acceptance from the council, but that process involves cost and uncertainty, and approval is not guaranteed.
Likewise, a LIM that places a property in a flood hazard area gives context to an inspector’s comments about subfloor moisture or poor site drainage. Cracking noted in a concrete slab carries more weight if council records also mention ground issues in the neighbourhood.
The reverse applies too. A clean LIM does not mean a sound house, and a favourable inspection does not mean the paperwork is in order. Cladding can fail even when every consent was signed off, and a well-maintained home can still carry an unpermitted extension.
Timing and conditions
With a conditional offer, it is common for a LIM condition and an inspection condition to be included in the agreement, each with its own due date. A lawyer or conveyancer can advise on suitable wording and timeframes. For auctions, both pieces of due diligence need to be finished before bidding begins, since the fall of the hammer creates a binding contract with no conditions attached.
Some vendors supply a LIM or an inspection report as part of their marketing material. These can be a helpful starting point, but they were commissioned by the seller, may be out of date, and the buyer usually has no contractual relationship with whoever prepared them. Many buyers commission their own for that reason.
Neither document is a guarantee. Both are tools for making an informed decision, and both work best when read slowly, with questions asked about anything that seems unclear.