What information would typically NOT be included in a Land Information Memorandum (LIM) report?
Correct Answer
B) Current market value of the property
A LIM report contains factual information held by the territorial authority about a property, including consents, notices, and environmental hazards. However, it does not include market valuations as these are opinions rather than factual records held by the council.
Why This Is the Correct Answer
Option B is correct because a LIM report contains only factual information held by the territorial authority, not opinions or assessments. Market valuations are subjective professional opinions about property worth, not factual records maintained by councils. The Local Government Official Information and Meetings Act 1987 and Building Act 2004 define LIM content as factual council-held information including consents, notices, rates, and hazards. Market values change constantly and require professional valuation expertise, making them inappropriate for inclusion in a factual council document.
Why the Other Options Are Wrong
Option A: Building consents issued for the property
Building consents are factual records issued by territorial authorities and are specifically included in LIM reports. These consents are official council documents that form part of the property's regulatory history and are essential information for potential purchasers.
Option C: Resource consents affecting the property
Resource consents are official approvals granted by councils under the Resource Management Act 1991 and are factual records held by territorial authorities. These consents directly affect land use rights and are specifically included in LIM reports as they represent official council decisions.
Option D: Known contaminated land issues
Known contaminated land issues are factual environmental hazards recorded by councils under various environmental legislation. Territorial authorities maintain registers of contaminated sites and this factual information is specifically included in LIM reports to inform potential purchasers of environmental risks.
Deep Analysis of This Resource Management Question
A Land Information Memorandum (LIM) is a crucial document in New Zealand property transactions that provides factual information held by territorial authorities about a property. Understanding what is and isn't included in a LIM is essential for real estate agents as it affects due diligence processes and client advice. The LIM contains objective, factual records maintained by councils including consents, notices, rates information, and known hazards. However, it specifically excludes subjective assessments like market valuations, which are opinions rather than factual records. This distinction is important because clients often expect comprehensive property information from a LIM, but agents must clarify its limitations. The LIM's factual nature makes it legally reliable for disclosure purposes, while market valuations require separate professional assessment. This knowledge helps agents properly advise clients on additional reports needed and manage expectations about what information sources are required for informed property decisions.
Background Knowledge for Resource Management
A Land Information Memorandum (LIM) is a report prepared by territorial authorities containing factual information about a property held in council records. Governed by the Local Government Official Information and Meetings Act 1987 and Building Act 2004, LIMs include building and resource consents, notices, rates information, known hazards, and environmental issues. The key principle is that LIMs contain only factual, objective information held by councils, not opinions, assessments, or valuations. This makes them legally reliable for disclosure purposes but limited in scope. Real estate agents must understand LIM limitations to properly advise clients on additional reports needed for comprehensive due diligence.
Memory Technique
Remember LIMs contain only FACTS: Factual information, Authority records, Council-held data, Territorial records, Statutory information. LIMs never contain opinions, valuations, or assessments - only hard facts the council has on file.
When you see LIM questions, ask yourself 'Is this a FACT held by council or an OPINION/ASSESSMENT?' Market values, property conditions, and professional opinions are never in LIMs - only official council records and factual notices.
Exam Tip for Resource Management
Remember: LIMs are factual council records only. If an option mentions valuations, opinions, assessments, or market-related information, it's typically NOT in a LIM. Focus on official consents, notices, and recorded hazards.
Real World Application in Resource Management
A client asks their agent if the LIM will tell them what their property is worth for selling purposes. The agent must explain that while the LIM provides valuable factual information about consents and potential issues affecting the property, it won't include market valuation. The client will need a separate registered valuation or comparative market analysis. The agent uses the LIM's factual information about building consents and any notices to help assess factors that might affect value, but emphasizes that professional valuation services are required for actual market worth determination.
Common Mistakes to Avoid on Resource Management Questions
- •Assuming LIMs contain market valuations or property assessments
- •Confusing LIM content with building inspection reports
- •Thinking LIMs include professional opinions about property condition
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?
- → What information would you typically find in a LIM report?
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