It is becoming more common for a Vendor to provide a prospective Purchaser with a LIM Report or a Building Report on their property that the Vendor has obtained themselves from their local Council or Builder. While this provides an opportunity to save time ordering and arranging these reports, and to save money on LIM and Inspection fees there are a couple of hooks that the Purchaser should be aware of. The Purchaser can then weigh up the risks versus the cost and time saving.
If the Vendor has supplied the Purchaser with an old LIM report there may be information missing that the council was not aware/not holding in their records at the time that LIM was ordered. Purchasing a new LIM report ensures that all information the Council hold for the property is captured for you and your lawyer to review.
The council who supplies the LIM owes a contractual liability to the party that orders the LIM report. This provides that should there be any error, omission or misstatement in the LIM report that you subsequently rely on or do not have the opportunity to assess and this has financial consequences then the council can be held liable.
Similarly a Vendor supplied builders report does not provide the purchaser with any contractual liability with the inspector/builder, for the everyday purchaser (not a company) this falls under the consumer guarantees act and it is important to read the scope of the report, and the builders terms and conditions. The additional risk here is that the Builder has been provided instructions from the Vendor/Third Party and is not acting on behalf of the Purchaser, therefore the report may not adequately reflect your needs.
If you have any questions or concerns in relation to a prospective purchase please contact us on 03 687 7126.