Reports, reports, reports....

Do your due diligence…you would get a car looked over before purchasing, and a house is a lot larger investment that requires you to complete a fair amount of due diligence to make sure you’re not buying a ‘lemon’.

Firstly, a Building report, also known as a pre-purchase property inspection, is a vital step in the property buying process. It provides a detailed assessment of the dwellings condition, highlighting any existing or potential issues, and any ongoing maintenance requirements.

This report helps to uncover any structural defects in the property, gives an overview of the property’s maintenance needs, helping you make an informed purchasing decision and reduces the risk of unexpected problems after purchase.

When obtaining a building report, ensure you hire an independent qualified and experienced building inspector who can also review the PFP (see below) to confirm the property is compliant with the Building Code.

Should you rely on a vendor’s building report? A report commissioned by the vendor unfortunately may downplay or omit issues to make the property seem more appealing, it may also not be current, and if the report contains errors or misses major defects, you have no legal recourse against the inspector since you didn’t commission the report yourself.

A building report is an investment, that protects your interests and ensures the property meets your expectations (and your lenders).

What about a LIM report and Property File?

A Land Information Memorandum (LIM) report is an essential document when considering purchasing a property. It is a disclosure tool, providing a summary of information the local council has on file about the property, such as zoning, natural hazards (like flooding or erosion), building consents, and any planned developments that might affect the property.

A Property File Product (PFP) is another disclosure tool from the local council that may hold additional information on building and resource consent documents. A PFP does not replace the LIM.

When reviewing a LIM and/or PFP you must make sure the reality matches the LIM as the LIM will be silent on unconsented works the council is not aware of, check for any natural hazards that will need to be disclosed to for your insurance quote -for more info and past claims see natural hazard portal: https://www.naturalhazardsportal.govt.nz/s/ , follow the links for the district operative plans that may affect the suitability the property.

Getting your own LIM report and PFP ensures that you have the most up-to-date and accurate information. If you rely on vendors documents, you may find you have no redress should there be an error within those documents.

Where to go? A LIM and PRP are ordered from your local council, visit their website or give them a call to order your reports.

These are all small property purchasing investments that could save you from costly surprises in the future!

Jo Shannon is the founder of Nest legal & conveyancing. A Conveyancing Practitioner Jo lives with her family in the beautiful Bay of Plenty. Apart from all things property, Jo also loves perma-culture gardening, walking round the Mount and nice wine.