RealyThe complete NZ property due diligence checklist
Due diligence is the window between accepting an offer and going unconditional. It's the only time you can walk away without losing your deposit. This checklist covers every item we recommend buyers verify before confirming an offer in New Zealand.
Documents to obtain
| Document | Source | Typical cost | Turnaround |
|---|---|---|---|
| LIM report | Local council | $300–$450 | 5–10 working days (or paid fast-track) |
| Title search & instruments | LINZ via your lawyer | ~$50 | Same day |
| Builder's report (NZS 4306) | Independent building inspector | $600–$1,200 | 3–7 days |
| Methamphetamine test (NZS 8510) | Accredited testing company | $200–$500 | 2–5 days |
| Insurance pre-approval | Insurer | Free | 1–3 days |
| Body corp disclosure (if applicable) | Body corporate manager | ~$100 | 5 working days |
What to check on the LIM
- Code Compliance Certificates (CCCs) for every consented work
- Outstanding building consents not yet signed off
- Unauthorised work flagged by the council
- Notices to fix or abatement notices
- Stormwater, sewer, and drainage diagrams under the building
- Hazards: flood plain, liquefaction, contaminated land (HAIL register), rockfall, coastal hazard
- Heritage / character overlays that restrict alterations
- Rates owing
See our full LIM report explainer.
What a builder's report should cover
Insist on an inspection compliant with NZS 4306. The report should specifically address:
- Roof, spouting, downpipes (use of a drone or cherry picker for steep roofs)
- Subfloor — moisture, borer, piles, ventilation
- Cladding type and condition (especially monolithic / plaster cladding from 1994–2004 — 'leaky building' era)
- Window joinery and flashings
- Electrical age (rubber-insulated wiring is uninsurable in many cases)
- Plumbing material — Dux Quest pipe (1978–1989) is still found and known to fail
- Insulation, ventilation, healthy homes compliance (mandatory if you'll rent it)
- Asbestos in soffits, lino, textured ceilings (common pre-2000)
Insurance — get a quote before going unconditional
Since the Christchurch earthquakes and recent flooding events, insurers have become highly selective. Always get a written quote, not a verbal indication, before confirming finance. Watch for:
- Higher-than-normal natural-hazard excesses (sometimes $20k+ in flood zones)
- Exclusions for unreinforced masonry, characterful chimneys, or unconsented work
- Refusal to insure properties on TC3 land or with significant slope
Body corporate / cross-lease specifics
For unit titles request: pre-contract disclosure statement, additional disclosure statement, last 2 years of minutes, current Long-Term Maintenance Plan, levy schedule, and any special levies under discussion.
For cross-lease: check the flats plan matches the building footprint. Any extension, deck, or carport added without redrawing the plan creates a defective title that can cost $5,000–$20,000 to fix.
Questions to ask the agent in writing
- Has the property been on the market in the last 12 months? At what price?
- Are there any known defects or insurance claims?
- Why is the seller selling?
- Is the seller aware of any neighbour disputes, easements, or boundary issues?
- Are chattels listed in the agreement working?
Get answers in writing — verbal answers cannot be relied on if a dispute arises.
Frequently asked questions
How many working days should my due diligence period be?
Aim for 10–15 working days. LIM and builder's reports both take time, and you need a buffer for follow-ups (e.g. a thermal scan if the builder finds suspicious moisture).
Can I waive due diligence to make my offer stronger?
You can, and at auction you have to, but it transfers all risk to you. We'd only recommend it on a property where you've already done a builder's report, LIM, and title search before bidding.
Who pays for due diligence if the deal falls through?
You do. LIM, builder's report, and meth test costs are non-refundable, even if you withdraw on a valid condition.
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