When making an offer on a property, you can add various conditions to the Sale & Purchase Agreement to protect yourself as the buyer. One common condition is to have the offer subject to a LIM report check.
What is a LIM Report Condition?
This condition gives you the right to obtain, review, and approve the LIM (Land Information Memorandum) report before finalising your purchase. Usually, you have 15 working days to confirm this condition.
What Does a LIM Report Show?
A LIM report contains historical information about the property, including how it was built, any known issues, improvements, or additions. For example, if a property has a carport but the LIM report doesn’t mention it, that could mean the carport was added without consent, which might cause financing or resale issues later.
What LIM Reports Don’t Cover
Keep in mind, a LIM report does not cover physical damages or leaks to the property. That’s why it’s smart to use this condition alongside a building inspection (you can read more about that [here]).
Why You Should Have a Solicitor Review It
LIM reports can be detailed and complex. Your solicitor knows what to look for and can spot issues that might seem minor to you but could be significant in the long run.
Important: Make Sure the LIM Report is Addressed to You
Always ensure the LIM report is issued in your name, as the buyer. If you rely on a LIM report provided by a real estate agent that’s not addressed to you, you may have no legal recourse if the report contains errors or false information—because the council’s duty of care applies only to the named recipient.
Cost of a LIM Report
Expect to pay between $300 and $500 for a LIM report.
Final Thoughts
Always review the LIM report when buying a property. It’s a crucial part of your due diligence and can help you avoid costly surprises later on.
