3 of 5, Buying

Researching the Property

A property that looks right still deserves proper due diligence, this is the “look under the lid” stage, and it’s genuinely worth the time and cost before you’re committed.

Get a LIM report

A Land Information Memorandum (LIM), issued by the local council, sets out what the council knows about the property or section, consents and permits issued, any recorded drainage or plumbing issues, rates owing, and known hazard information. It’s not a guarantee the property has no problems, but it’s a genuinely useful starting point, and something your lawyer can help you interpret.

Get a building report

A qualified building inspector can identify current or likely future problems with a property’s condition, something worth doing even on a newer home, since issues aren’t always obvious on a walk-through. This is usually arranged as a condition of your offer, with a specific timeframe to have it done.

Check the title properly

Your lawyer will review the property’s certificate of title for anything that could affect your use of it, easements (rights for others to cross or use part of the land), covenants (restrictions on what can be built or done on the land), and caveats (a notice that someone else may have an interest in the property). None of these are necessarily deal-breakers, but you want to know about them before you’re committed, not after.

Be aware of natural hazards

Flooding, erosion and seismic risk vary by specific location, and this varies genuinely street to street, not just suburb to suburb, a LIM report and your local council’s hazard information are the right starting points, not a general assumption either way. If you’re unsure, ask directly and get it checked before you’re relying on assumptions.

Meth testing

Methamphetamine contamination is a real, if less common, consideration in some properties, particularly former rentals. A meth test isn’t automatic on every purchase, but it’s worth discussing with your building inspector or lawyer if you have any reason for concern.

Don’t skip this stage because you’re excited about a property

It’s easy to want to rush due diligence when you’ve found a property you like, particularly in a competitive situation. This is exactly the stage worth protecting with proper conditions in your offer, see making an offer next.

FAQ

Frequently asked questions

It sets out what the local council knows about the property, consents and permits issued, recorded drainage or plumbing issues, rates owing, and known hazard information. It’s a useful starting point, though your lawyer can help you interpret what it does and doesn’t cover.

Yes, issues aren’t always visible on a walk-through regardless of the property’s age, and a qualified building inspector is trained to spot things a buyer typically wouldn’t.

Start with the LIM report and your local council’s hazard information, risk can vary genuinely street to street, so it’s worth checking the specific property rather than assuming based on the general area.

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