Hi
I made an offer subject to LIM, builder's report, finance and sale of my existing houses.
So while I was making calls arranging other things on my lunch breaks I put LIM application on the back burner. Now that a week has passed and I get around to the LIM I see it takes 10 working days for them to process the information. But I had to fulfill that condition withing 15 days.

So how important is a LIM? Just to make sure the building(s) on site match the LIM? Or are there other things I should be looking for?

Just to make things more stressful, when the agent was signing me up for the sale of my properties she said I should check with my accountant to make sure I won't have to pay tax on the sale of the rental. I've owned the house I live in for 20 years. I've owned the rental since about Sep 2016. I'm not gst registered. I have not heard from my accountant and could not get through to IRD. (Who could get through to IRD on a half hour break?)

bit - 2021-11-07 06:03:00

Yes, the LIM is very important. It will show if there are any HazardsSections noted againt the title (ie. flood zone) and whether any works are non consented. Will going into the Council office speed this process up?

rhys12 - 2021-11-07 08:14:00

bit wrote:

Hi
I made an offer subject to LIM, builder's report, finance and sale of my existing houses.
So while I was making calls arranging other things on my lunch breaks I put LIM application on the back burner. Now that a week has passed and I get around to the LIM I see it takes 10 working days for them to process the information. But I had to fulfill that condition withing 15 days.

So how important is a LIM? Just to make sure the building(s) on site match the LIM? Or are there other things I should be looking for?

Just to make things more stressful, when the agent was signing me up for the sale of my properties she said I should check with my accountant to make sure I won't have to pay tax on the sale of the rental. I've owned the house I live in for 20 years. I've owned the rental since about Sep 2016. I'm not gst registered. I have not heard from my accountant and could not get through to IRD. (Who could get through to IRD on a half hour break?)

Is the LIM clause standard or did the agent redraft a half-baked version?

Edited by johnston at 8:20 am, Sun 7 Nov

johnston - 2021-11-07 08:19:00

Go into the council office and ask to view the property records. You will see all that is on the LIM.

But, you will not be able to back out of the deal if you see that the property is about to disappear in a sinkhole unless you have a formal copy of the LIM that shows that.

tony9 - 2021-11-07 08:43:00

IF the agent offers you a LIM, consider how many pages are in it, we had one once and it was very thin, went to TA and found a lot more information. The Auctioneer also started the auction by stating an incorrect Property Identifier, so we put him straight on that, surprisingly we were the only bidder.

Yes a LIM purchased and supplied to yourself, can be vital.

Edited by kenw1 at 8:53 am, Sun 7 Nov

kenw1 - 2021-11-07 08:52:00

tony9 wrote:

Go into the council office and ask to view the property records. You will see all that is on the LIM.
.

This is not correct. Much of the same information will be there, but much is also pulled dynamically from other systems - hazard data, latest resource and building consents, weathertight and HAIL data.

Speak to the council and explain - some do offer an urgent service.

If they can't then still do to the Council and view the property file, but try and also speak with someone from the building department. Most important aspects are whether the property has correct CCC sign off, hazards (flood etc) that might affect the property, and any resource consents on neighbouring properties.

If you find something that would make you want to reconsider the purchase, one possible avenue is to speak to your lender, explain the issue and see if that will affect or pull your finance (as long as you haven't confirmed the finance clause). There may be risks I haven't considered there so you should speak to your lawyer before doing anything like that!

sparkychap - 2021-11-07 09:37:00

bit wrote:

Hi
I made an offer subject to LIM, builder's report, finance and sale of my existing houses.
So while I was making calls arranging other things on my lunch breaks I put LIM application on the back burner. Now that a week has passed and I get around to the LIM I see it takes 10 working days for them to process the information. But I had to fulfill that condition withing 15 days.

So how important is a LIM? Just to make sure the building(s) on site match the LIM? Or are there other things I should be looking for?

Just to make things more stressful, when the agent was signing me up for the sale of my properties she said I should check with my accountant to make sure I won't have to pay tax on the sale of the rental. I've owned the house I live in for 20 years. I've owned the rental since about Sep 2016. I'm not gst registered. I have not heard from my accountant and could not get through to IRD. (Who could get through to IRD on a half hour break?)

yes many have, some for quite serious reasons, amazingly alot for no CC , lots of dodge out there from the cowboy days.

gabbysnana - 2021-11-07 09:53:00

Thanks everyone. I will ask the agent if he can get me an extension on the LIM as well as the other advice above.
I'm not sure if I would be able to pull a finance decline trick as if I'm able to sell both my houses I won't need finance, all going well.

bit - 2021-11-07 11:33:00

You should be able to pay extra for a more speedily processed LIM (might depend upon the Council).

I'm no tax accountant, but given your rental was purchased pre-March 2018 (when the new 5-year brightline test came in) and you've had it for more than 5 years now anyway, I don't think you'll be liable for profit made on that sale.

sarahp24 - 2021-11-07 16:45:00

We relied on a LIM supplied with the paperwork of a house for sale and bought it. I became suspicious as soon after we moved in and went and read the council records, and the LIM was a complete work of fiction.

articferrit - 2021-11-07 16:50:00

articferrit wrote:

We relied on a LIM supplied with the paperwork of a house for sale and bought it. I became suspicious as soon after we moved in and went and read the council records, and the LIM was a complete work of fiction.

You got what you paid for....

sparkychap - 2021-11-07 18:07:00

I'd be pretty pissed off if I was the vendor and you asked for an extension for LIM when you had 15 days. Pretty slack to not even get the process started!!

austimac - 2021-11-07 20:11:00

bit wrote:

Thanks everyone. I will ask the agent if he can get me an extension on the LIM as well as the other advice above.
I'm not sure if I would be able to pull a finance decline trick as if I'm able to sell both my houses I won't need finance, all going well.

You might have to go through your lawyer, rather than the real estate agent.

The last place I bought, the insurance broker needed to see the LIM before I could get insurance as the area is considered a subsidence risk.

manaia127 - 2021-11-07 20:17:00

austimac wrote:

I'd be pretty pissed off if I was the vendor and you asked for an extension for LIM when you had 15 days. Pretty slack to not even get the process started!!

The vendor should just say no. The purchaser has waived their right to a LIM.

johnston - 2021-11-07 20:54:00

This is why you should always include a clause that gives you a bullet proof 'out' in your agreement ... even builders reports can become a problem . A clear, comprehensive documented S and P is a wonderful thing to behold.

Edited by phalanax at 9:45 pm, Sun 7 Nov

phalanax - 2021-11-07 21:40:00

phalanax wrote:

This is why you should always include a clause that gives you a bullet proof 'out' in your agreement ... even builders reports can become a problem . A clear, comprehensive documented S and P is a wonderful thing to behold.

Like a "subject to solicitors approval" clause?

sparkychap - 2021-11-07 22:03:00

phalanax wrote:

This is why you should always include a clause that gives you a bullet proof 'out' in your agreement ... even builders reports can become a problem . A clear, comprehensive documented S and P is a wonderful thing to behold.

Allowing purchsers and vendors to change their minds is not wonderful. It is nonsensical.

johnston - 2021-11-07 22:23:00

johnston wrote:

Is the LIM clause standard or did the agent redraft a half-baked version?

No idea. How do I know?

Actually, looking at it now, the agreement was signed on 1 Nov and it states I was to request the LIM on or before the 5th working day. If I don't approve the LIM I have until the 15th working day, Nov 22.

So i am running a little late but if I go in to the council and order the LIM and they are willing to pull up any documents of interest or concern in my presence then I can raise the issue with the vendor in time.

A builder looked at it today. Drainage is not really good. Ie a concrete path will need replacing at some stage but the house is not at risk. The tenant was also there. She said there used to be a moisture problem in the house but since a Moisture Master system was installed it's good. The tenants have a new home to go to. All good.

bit - 2021-11-07 23:16:00

johnston wrote:

Allowing purchsers and vendors to change their minds is not wonderful. It is nonsensical.

Nothing nonsensical about a well engineered clause ....lol

phalanax - 2021-11-08 06:44:00

phalanax wrote:

Nothing nonsensical about a well engineered clause ....lol

Of course not. Clearly I was referring to your notion of being able to cancel a contract on a change of mind.

johnston - 2021-11-08 06:46:00

bit wrote:

No idea. How do I know?

Actually, looking at it now, the agreement was signed on 1 Nov and it states I was to request the LIM on or before the 5th working day. If I don't approve the LIM I have until the 15th working day, Nov 22.

So i am running a little late but if I go in to the council and order the LIM and they are willing to pull up any documents of interest or concern in my presence then I can raise the issue with the vendor in time.

A builder looked at it today. Drainage is not really good. Ie a concrete path will need replacing at some stage but the house is not at risk. The tenant was also there. She said there used to be a moisture problem in the house but since a Moisture Master system was installed it's good. The tenants have a new home to go to. All good.

You must order the LIM today (it's your last day) otherwise, you cannot cancel because if you do not approve the LIM.

Unless your offer is subject to a building report, you cannot cancel because of building defects not covered in the LIM.

johnston - 2021-11-08 06:54:00

johnston wrote:

Of course not. Clearly I was referring to your notion of being able to cancel a contract on a change of mind.

but inserting such a clause would be an option.....

sparkychap - 2021-11-08 08:10:00

sparkychap wrote:

but inserting such a clause would be an option.....

Correct.

johnston - 2021-11-08 08:23:00

I am an accountant. The brightline test on the rental would be a 2 year one as it was purchased between 2015 and 2018. So, as long as there has been no restructure or movement of the ownership, no tax on capital gains.

lizzyj - 2021-11-08 11:59:00

Thanks lizzyj
I went in to the council and ordered the LIM. Also paid for a property search (?) which pulled up a LIM from 2016. So that is something until the new one arrives.

bit - 2021-11-08 23:12:00

austimac wrote:

I'd be pretty pissed off if I was the vendor and you asked for an extension for LIM when you had 15 days. Pretty slack to not even get the process started!!

You try working 12 hour days only able to use phone during breaks and reception is poor. (12hr plus 1.5hr traveling/day)

bit - 2021-11-08 23:16:00

Yes LIM very important , we had to pull out of a sale as the LIm showed 1/3 of the building had not been signed off, this would have i made it tricky to insure and in turn get finance.

architan - 2021-11-11 16:11:00