Build­ing re­port and LIM vi­tal

Kapi-Mana News - - OUT & ABOUT - ALAN KNOWSLEY LE­GAL MAT­TERS

Given the cur­rent prop­erty mar­ket, it is be­com­ing more com­mon for a ven­dor (or seller) to sup­ply a LIM re­port (Land In­for­ma­tion Mem­o­ran­dum) and a build­ing in­spec­tion re­port to po­ten­tial pur­chasers.

While this can help po­ten­tial pur­chasers make an un­con­di­tional of­fer (or an of­fer with less con­di­tions) they do need to be care­ful when re­ly­ing on these re­ports.

LIM RE­PORT

As this is a gov­ern­ment-is­sued re­port, the lo­cal coun­cil is re­quired to in­clude all the in­for­ma­tion they have in re­spect of a prop­erty in the LIM re­port.

You should, how­ever, note the fol­low­ing three tips:

Check the date of the LIM re­port to en­sure that it is cur­rent and up to date.

Check with the ven­dor (via the agent) to see if there have been any works or any new in­for­ma­tion come to light about the prop­erty since the LIM re­port

1. 2.

was is­sued.

If the prop­erty is a unit ti­tle, check that the re­port is for the par­tic­u­lar unit you are look­ing to pur­chase.

3. BUILD­ING IN­SPEC­TION RE­PORT

A build­ing in­spec­tion re­port is pre­pared by a build­ing in­spec­tor for their client.

If the client is the ven­dor, you need to be ex­tremely care­ful when re­ly­ing on this re­port.

It is im­por­tant that you un­der­stand any po­ten­tial is­sues this could cause.

By way of ex­am­ple you should be aware of the fol­low­ing five tips:

The con­tract is be­tween the build­ing in­spec­tor and the ven­dor. This means that if the builder has made an er­ror in this re­port, the builder is not li­able to you for any such er­ror.

Some build­ing in­spec­tion com­pa­nies will agree to read­dress the re­port to you so that the builder is then li­able to you for any such er­ror.

You would need to make enquiries di­rectly with the build­ing in­spec­tor to see if this is pos­si­ble.

If so, it is likely that there will be an ad­di­tional cost in­volved with do­ing this.

1.

En­sure you know ex­actly what the build­ing in­spec­tion re­port in­cludes and ex­cludes.

For ex­am­ple, the re­port may ex­clude check­ing the weather tight­ness of a prop­erty (ie is it leak­ing). Often there will be a sum­mary of what is cov­ered by

‘‘Check the date of the build­ing in­spec­tion re­port to en­sure that it is cur­rent and up to date.’’

2.

the re­port. If not, we rec­om­mend that you check this with the build­ing in­spec­tor di­rectly.

Check the date of the build­ing in­spec­tion re­port to en­sure that it is cur­rent and up to date.

Check with the ven­dor (via the agent) to see if there have been any works un­der­taken on the prop­erty since the date of the build­ing in­spec­tion re­port (in­clud­ing any re­me­dial work that may have been com­pleted).

Check that the build­ing in­spec­tion re­port be un­der­taken by a builder that has pro­fes­sional in­dem­nity in­sur­ance and who

3. 4. 5.

car­ries out work in ac­cor­dance with NZ Prop­erty In­spec­tion Stan­dards.

Af­ter tak­ing into ac­count these five tips, you should con­sider whether you are sat­is­fied with the risks in­volved in re­ly­ing on a build­ing in­spec­tion re­port sup­plied by a ven­dor, or whether you would pre­fer to ob­tain your own build­ing in­spec­tion re­port.

Col­umn cour­tesy of RAINEY COLLINS LAWYERS phone 0800 733 484 or rain­ey­collins.co.nz. If you have a le­gal in­quiry you would like dis­cussed in this col­umn please email Alan on aknowsley@rain­ey­collins.co.nz

LIM and build­ing re­ports are es­sen­tial for any prop­erty pur­chase.

Newspapers in English

Newspapers from New Zealand

© PressReader. All rights reserved.