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24 May, 2017 | Fiona Taylor
For example, some of the information contained in a LIM may affect what you can and can’t do to the property, change the feeling of the wider area the property is located in or cause problems in obtaining insurance. There may be work that has been carried out that has not been approved, and the Council may force you (as the new owner) to rectify those works.
All of these things affect what you are able to do with the property once purchased, and therefore impact on the value of the property.
You can obtain a LIM (Land Information Memorandum) report from the Council in respect of any property. A Council is under a legal obligation to provide a report to you within ten working days of you applying for it, however many Councils have a facility for urgent LIM report availability. The costs vary with each Council.
It is recommended that you have a property law expert review your LIM, as they know the pitfalls and keywords to watch out for, and can explain what each part means and highlight any issues.
If you are purchasing at Auction, you should have the LIM reviewed as part of your property due diligence prior to Auction day.
If you are not purchasing at Auction, you should ensure your offer is conditional on a satisfactory LIM report. This is usually achieved by ticking the “LIM” box on the front page of the Agreement for Sale & Purchase Agreement. As LIM usually take 10 working days to come from Council, ensure that the condition date allows you enough time to request the LIM, receive it from the Council and have your property lawyer review it.
Smith and Partners offers a fixed price Residential Property Auction Due Diligence package which includes:
The cost of this is $350* + GST, Disbursements & Office Expenses. If you are successful at auction, this fee will be deducted from your overall conveyancing fees.
*Unit Title Properties may incurr additional costs to complete a full review of body corporate documents etc.
The cost of reviewing a LIM for a conditional offer on a property is usually included in the cost of your conveyancing.
2 November, 2011 | Fiona Taylor