How to Do Due Diligence on a Canterbury Property

Due diligence is the investigation period between making a conditional offer and going unconditional. It is your window to discover everything material about the property before you are legally committed to purchase. A thorough Canterbury due diligence process covers several distinct areas.

The LIM Report

Order the LIM from Christchurch City Council immediately after your offer is accepted. Your solicitor can do this for you. Review it carefully for: TC land category; any flood hazard notation; building consent history and whether consents have code compliance certificates; any outstanding council notices; drainage and stormwater information; and heritage or covenant restrictions. Have your solicitor review the LIM and advise you on any concerning items before the LIM condition deadline.

The Building Inspection

Commission a qualified Canterbury building inspector to conduct a thorough visual inspection. Choose an inspector with specific Canterbury earthquake experience. The report should address structural condition, moisture, roofing, exterior cladding, foundation, subfloor, and any visible signs of earthquake repair history. Read the full report carefully, not just the summary. Ask the inspector to walk you through their findings if there are any items you do not fully understand.

Title Search and Legal Review

Your solicitor searches the title to confirm: the correct ownership; the existence and nature of any mortgages, caveats, or encumbrances; any easements, covenants, or registered restrictions affecting the property; whether the title type (freehold, cross lease, unit title) matches what was represented; and whether the physical boundaries are consistent with the title. For cross lease properties, your solicitor checks whether the flats plan accurately reflects the current buildings.

EQC History

Request the EQC claim history from Toka Tu Ake EQC. The vendor's solicitor typically has the claim reference if any claims exist. Review the settlement history and any documentation about what repairs were carried out and by whom. Compare the repair history against what the building inspector observes in the current condition of the property.

Insurance Quotes

Get quotes from at least two insurers before going unconditional. Confirm the property is insurable at full replacement value and understand the annual premium and any exclusions.

Finance Confirmation

Your bank needs to approve the specific property as satisfactory security. Provide all property documentation to your bank as soon as possible after the offer is accepted to allow time for their assessment and any required registered valuation.

For general information only - always work with a qualified solicitor, building inspector, and mortgage adviser for Canterbury property due diligence.