Due Diligence Documents

LIM Report vs Building Report

A LIM tells you what the council knows on paper. A building report tells you the physical condition of the property. They cover completely different things — get both.

Side-by-Side Comparison

AttributeLIM ReportBuilding Report
SourceLocal councilIndependent building inspector
CostVaries by council$400-$800+
Turnaroundup to 10 working days2-5 working days
Content focusCouncil records, consents, zoning, hazardsPhysical condition, defects, maintenance
Unconsented workMay show consents without CCCMay identify work that doesn't match consents
Moisture issuesNoYes — moisture testing included
Structural assessmentNoVisual structural assessment
Future maintenanceNoYes — upcoming maintenance needs

LIM Report Explained

The LIM is a paper-based report from the council. It tells you about building consents, resource consents, zoning, natural hazards, and other council-held information. It's essential for understanding the regulatory and environmental context of a property.

However, a LIM cannot tell you about the physical condition of the building. A property could have a clean LIM but serious moisture problems, structural issues, or deferred maintenance.

Building Report Explained

A building report (also called a property inspection or building inspection) is a physical assessment of the property by a qualified building inspector. They examine the structure, cladding, roofing, plumbing, electrical systems, moisture levels, and overall condition.

A good building report will identify current defects, potential future problems, and estimated costs for repairs. It's particularly important for older homes and properties with weathertight cladding systems (monolithic cladding, plaster, etc.).

Do You Need Both?

Yes. The LIM and building report are complementary, not alternatives. The LIM reveals issues in council records (unconsented work, hazard zones); the building report reveals physical defects (leaks, rot, structural problems). A property could pass one and fail the other.

Which Should You Get First?

Order the LIM as early as possible (it has a longer turnaround time). Schedule the building inspection to happen during the LIM processing period. Ideally, you'll have both reports before your due diligence conditions expire.

Frequently Asked Questions

What if the building report finds issues?

You can negotiate with the seller (request repairs, a price reduction, or a credit), proceed with eyes open, or walk away if you have a building inspection condition in your agreement. Your lawyer can advise on the best approach.

How do I find a good building inspector?

Look for inspectors registered with the New Zealand Institute of Building Inspectors (NZIBI) or a similar professional body. Ask for sample reports, check reviews, and ensure they carry professional indemnity insurance.

Make Smarter Property in New Zealand Decisions

Get clarity on property documents, titles, and risks with AI analysis.

No commitment required · Start free