Weeks‑long delays for council property reports are slowing sales and complicating borrowing.
Wellington’s growing backlog of Land Information Memorandums (LIMs) is forcing extra time into property deals and raising timing risks for borrowers and advisers. House sales are being delayed by an average LIM processing time of 28 working days, almost three times the statutory 10‑day limit, according to RNZ.
Because most banks will not lend without seeing a LIM, longer waits are creating fresh uncertainty for first‑home buyers and property investors trying to manage finance clauses, pre‑approvals, and settlement dates.
In one recent case reported by Stuff, a Wellington buyer faced an 18‑day delay for their LIM, leaving them effectively “held hostage” while the clock ticked on their purchase window.
Lowe & Co real estate agency co‑founder Craig Lowe said conditions are the toughest he has seen.
“At least in my memory, I can't remember it being this bad,” Lowe said.
Buyers miss out as LIMs lag behind the market
Agents say the backlog is already costing would‑be borrowers properties.
Tommy’s Real Estate salesperson Alexia Stoddart described a client who lost a house because they could not go unconditional without a LIM.
“Their dream property popped up on the market, and they couldn't be unconditional as the LIM hadn't come through. I think it was on day 20 [of waiting for the LIM]. So, they offered, but with a finance clause waiting for that LIM,” Stoddart said.
Vendors are also being caught out. Stoddart said some owners only discover they need a LIM when they decide to list, leaving them waiting weeks while buyers sit on conditional contracts and banks hold off on final approval. She described it as “a five‑week limbo” for new listings, with LIM‑driven finance clauses slowing otherwise ready‑to‑go deals.
Council scrambles to clear backlog as costs stay high
Wellington City Council says strong summer listing volumes and continued high demand into February and March pushed applications to around 452 LIMs in the system, forcing it to pause its fast‑track service while it hires more staff, extends hours and looks at automation.
The council charges $563.50 per LIM, more than in Auckland, Christchurch, Hamilton, or Dunedin, and says fees reflect full cost recovery rather than processing times.
Until the backlog eases, brokers in the capital are likely to keep urging clients to order LIMs early, allow generous finance periods and be realistic about how quickly “unconditional” really is in Wellington right now, according to reports from RNZ and Stuff.
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