A surge in Land Information Memorandum (LIM) report applications has left Tauranga City Council struggling to keep up with demand and real estate agents 'frustrated” by delays.

Figures released by Tauranga City Council show in the 12 months to February, Land Information Memorandum applications are up 25 per cent, sitting at 1826 compared to last February's 1455.

Photos: Bruce Barnard.

A LIM report is a compendium of information a local authority, such as a city council, has on a property in its jurisdiction. Almost all buyers include the condition of getting a satisfactory LIM in their sale and purchase agreement.

Councils are required to issue the reports within 10 working days, and while many come in under this time, recent delays have caused concern within the real estate industry.

Tauranga City Council customer services manager Margaret Batchelar admits LIM report applications have increased 'significantly” since last November, with five and ten day LIM applications rising by 20 and 32 per cent respectively since last February.

As a result, compliance with expected LIM timeframes dropped to 78 per cent at the end of February across both LIM types.

'This was due to an unprecedented level of applications never seen before in eight years of recorded data,” says Margaret.

In February, 320 applications were received, 44 per cent higher than those seen 12 months earlier.

According to council, a five day residential LIM report costs $326, and both a 10 day residential and commercial report $219.

Margaret says refunds have occurred recently where council has been unable to provide the report within the specified timeframe of five working days.

Tauranga Harcourts managing director Simon Martin believes council has been 'caught unawares” by the jump in demand in the property sector.

Real estate agents strongly recommend sellers to get a LIM report, but Simon says the heightened demand and interest has meant council is coming under more pressure, causing frustration within the industry at the length of time involved.

All Harcourt auctions are three-week campaigns, and there has been the odd occasion where LIM reports report haven't been sent until the last week, adds Simon.

'The amount of demand we have put on council for LIMs has increased,” explains Simon, 'and from our company's point of view it's probably doubled.

'I know they are addressing those issues and, from what we understand, they are training more staff to do it, which is good.

'I can understand their dilemma and they are pretty good when you tell them we have a deal that is about to collapse if we don't get it out on time.”

Realty Service Group chief executive Ross Stanway says the increase in LIM applications is expected give the interest in the property market at the moment.

But he says there is always concern if the applications aren't met on time.

'For those involved, the 22 per cent that were not put through on time would certainly see it as a real concern.”