Whanganui District Council is warning property buyers to avoid third-party websites charging inflated prices for Land Information Memorandum reports.
By Moana Ellis of Local Democracy Reporting
Customers can get the same official information directly from the council for a fraction of the cost, the council said.
The council’s Regulatory and Compliance Operations Manager Jason Shailer said there is no need for buyers to use costly go-betweens.
"These websites are essentially acting as expensive middlemen, ordering reports from councils on behalf of customers and charging substantially more for the service.
"People are being charged hundreds of dollars extra for a so-called express service, when paying a third party won't make us process the report any faster.”
The council became aware of one such website after a local real estate agent alerted a resident who had paid a significantly inflated price for a "fast-tracked" Land Information Memorandum (LIM) report.
The website, which presented itself as a New Zealand land information service but was understood to be operating from overseas, advertises residential LIM reports for Whanganui properties for $1299, with an additional $299 for express delivery – more than five times the council’s standard fee.
A residential LIM report ordered directly from Whanganui District Council costs $305.
Shailer said the website advertised a 10-working day turnaround for its express service, but councils were already legally required to process LIM reports within 10 working days of receiving an application and payment.
"Buying a property is expensive enough without paying an extra $1300 for information you can easily obtain directly from us.
"Our advice is simple: if you need a LIM report in Whanganui, order it directly from us. You'll get the same official report in the same timeframe without the substantial additional cost."
The warning follows similar concerns raised by Waitaki District Council this week, where third-party websites have also been found charging significant markups for LIM reports.
LIM reports contain information held by councils about properties, including rates, building consents, drainage, natural hazards and other details that may affect a property purchase.
Shailer said the issue highlights the importance of exercising caution when buying services online.
"Unfortunately, there are people and businesses out there aiming to take advantage of others, and increasingly sophisticated websites can make it difficult to tell who you're really dealing with.
“This is a reminder that we all need to be vigilant. Before paying for anything online, take a moment to check who you're dealing with, what you're paying for, and whether you're getting a fair deal."
LIM reports for properties in the Whanganui district can be ordered directly through whanganui.govt.nz.
– Local Democracy Reporting is local-body journalism co-funded by RNZ and NZ On Air
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