What information would NOT typically be found in a Land Information Memorandum (LIM) report?
Correct Answer
C) Current market valuation of the property
LIM reports contain factual information held by the council about a property, including consents, hazards, and certificates, but they do not include market valuations. Market valuations are commercial assessments typically provided by registered valuers, not council administrative information.
Why This Is the Correct Answer
Option C is correct because LIM reports contain only factual administrative information held by territorial authorities, not commercial assessments. Market valuations are professional opinions provided by registered valuers and represent subjective assessments of property worth based on market conditions, comparable sales, and valuation methodologies. These commercial valuations are not part of council records and therefore not included in LIMs. The Local Government Official Information and Meetings Act 1987 defines LIMs as containing factual information only, explicitly excluding opinions or assessments that councils don't hold as administrative data.
Why the Other Options Are Wrong
Option A: Building consents issued for the property
Building consents are administrative records maintained by territorial authorities as part of their regulatory functions under the Building Act 2004. These consents represent factual information about approved building work and are routinely included in LIM reports as they form part of the council's official property records.
Option B: Known natural hazards affecting the land
Natural hazards information is factual data that councils are required to maintain under the Resource Management Act 1991 and Building Act 2004. This includes flood zones, earthquake fault lines, coastal erosion risks, and other environmental hazards that councils have identified and recorded in their systems.
Option D: Special feature certificates on file
Special feature certificates, such as those for swimming pools, fire safety systems, or other compliance certificates, are administrative documents issued by councils. These certificates represent factual compliance information held in council records and are typically included in LIM reports as part of the property's regulatory history.
Deep Analysis of This Resource Management Question
Land Information Memorandums (LIMs) are statutory documents issued by territorial authorities under the Local Government Official Information and Meetings Act 1987. They provide factual, administrative information held by councils about specific properties. The key principle is that LIMs contain only objective, factual data that councils have on file - not subjective assessments or commercial opinions. This distinction is crucial for real estate professionals because it defines the scope and limitations of LIM reports. Understanding what's included versus excluded helps agents properly advise clients about additional due diligence requirements. LIMs serve as a starting point for property investigation, not a comprehensive property assessment. They complement but don't replace professional valuations, building inspections, or legal due diligence. This knowledge connects to broader concepts of information disclosure, professional responsibilities, and the multi-layered nature of property due diligence in New Zealand real estate transactions.
Background Knowledge for Resource Management
A Land Information Memorandum (LIM) is a report compiled by territorial authorities containing factual information they hold about a specific property. Governed by the Local Government Official Information and Meetings Act 1987, LIMs typically include building and resource consents, certificates of compliance, rates information, natural hazards, contaminated land records, and special feature certificates. They do NOT include subjective assessments, market valuations, or information the council doesn't hold. LIMs are valid for three months and cost varies by council. They're an important due diligence tool but have limitations - they only contain what's in council files and don't guarantee completeness of all property issues.
Memory Technique
Remember LIMs contain only FACTS: Factual Administrative Council Territory Systems. LIMs are like a council's filing cabinet - they only contain what the council has actually filed away as factual records. Market valuations are like opinions - they don't belong in a filing cabinet of facts, they belong in a valuer's professional assessment.
When you see LIM questions, ask yourself: 'Is this something a council would have in their factual filing system?' If it's an opinion, assessment, or commercial evaluation, it's not in the LIM. If it's a permit, consent, certificate, or hazard record, it probably is.
Exam Tip for Resource Management
Look for the option that represents opinion or commercial assessment rather than factual council records. Market valuations, property conditions assessments, and commercial opinions are never in LIMs - only factual administrative data that councils actually hold on file.
Real World Application in Resource Management
A buyer's agent orders a LIM for a client interested in a waterfront property. The LIM reveals building consents for a deck extension, a special feature certificate for the swimming pool, and coastal erosion hazard notation. However, the client asks why there's no current market value listed. The agent explains that LIMs don't include valuations - that requires a separate registered valuer's assessment. The agent then arranges for an independent valuation while using the LIM's factual information to identify potential issues requiring further investigation, such as the coastal hazard implications for insurance and future development.
Common Mistakes to Avoid on Resource Management Questions
- •Assuming LIMs contain market valuations or property assessments
- •Thinking LIMs include all possible property information rather than just council records
- •Confusing LIM content with building inspection or valuation report content
Related Topics & Key Terms
Key Terms:
More Resource Management Questions
What is the primary purpose of the Resource Management Act 1991?
Which document would typically contain rules about building height restrictions and setback requirements?
What is required before starting construction of a new dwelling in New Zealand?
A LIM report will typically include information about which of the following?
Under the RMA, if a proposed activity is not specifically provided for in a district plan, what classification does it receive?
- → A property developer wants to subdivide rural land into residential sections. The district plan shows this area is zoned Rural. What type of resource consent would most likely be required?
- → What is the key difference between a building consent and a resource consent?
- → A homeowner receives a LIM report showing that previous resource consent was granted with ongoing conditions requiring annual monitoring reports. What does this mean for the new owner?
- → A commercial development requires both earthworks exceeding 500m³ and a new building over 10 meters high in a zone where the height limit is 8 meters. The district plan classifies earthworks as controlled activities and height exceedances as restricted discretionary activities. What consenting pathway is required?
- → Under the RMA, when can a territorial authority decline a controlled activity resource consent application?
- → A property owner receives a notice that their building work was undertaken without a building consent. What is this notice likely to be called?
- → What is the primary purpose of the Resource Management Act 1991?
- → Which document would you consult to determine the permitted activities for a specific zone in a territorial authority area?
- → Under the Building Act 2004, which type of building work typically requires a building consent?
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