When making an offer on a property, there are a number of conditions that can be added to the Sale & Purchase agreement to protect you as the purchaser.
One of the common conditions is being subject to a “LIM report” check.
The purpose of this condition is to protect the purchaser by allowing them to obtain, check and approve LIM Report. Normally, the purchaser has 15 working days to confirm this condition.
A LIM report contains historical information about the condition a property was built in and any issues, improvements, additions or other works that have been done to said property. For example, if you visit a property that has a carport, but the LIM report makes no mention of a carport, then it’s possible that it is a recent addition to the property, and the work may not be consented, which could cause problems with obtaining finance or selling the house down the line.
It’s important however to note that the LIM report condition doesn’t cover things like damages, or leaks to the property. Therefore, it’s good practice to use this condition in conjunction with others, like a building inspection (see more about building inspection conditions here).
You should get this LIM report reviewed by your solicitor as it can be a detailed report and they will know what to look for – there are things that may not seem a big deal to you but could be significant!
And lastly, always make sure that a LIM report is addressed to you, the buyer! This is to protect you legally. If, for example, you rely on a LIM report given to you by an RE agent, and it turns out to contain false information, you will not be able to claim damages from the council, as they have no duty of care to you if the report wasn’t addressed to you.
The cost of a LIM report can vary but is generally between $300-500 and you can order this from the respective council website.
So in conclusion, always review the LIM report when buying a property. It’s an essential part of your due diligence and can save you a lot of trouble down the line!