Buying guide

What Is Due Diligence When Buying a House? | NZ Property Guide

Understanding this essential step in your property journey.

Last updated: 23 April 2025 | 2 min read

When you're house hunting in New Zealand, one phrase you’ll hear again and again is: Have you done your due diligence? But what does that actually mean?

In this guide, we’ll break it down in simple terms—what due diligence involves, why it matters, and the key documents and checks to cover before you make an offer on a home.

What Is Due Diligence—and Why Does It Matter?

Due diligence is your chance to do all the essential checks on a property before you buy. It’s about protecting yourself from costly surprises and making sure the property is right for you now and into the future.

Whether it’s uncovering issues with the roof, spotting flood risks, or finding out there’s a planned motorway nearby, due diligence gives you the full picture—so you can make a confident, informed decision.

Builder's reports can give you crucial information about the state of the property.

Your Due Diligence Checklist

There are two parts to doing your due diligence: research you can do yourself, and documents your legal or property experts will help you review.

Questions to Ask Yourself:

Do you like the area? Visit the suburb at different times of day. Check access to schools, shops, public transport, green spaces, and community events.
What are the council rates? Council rates can vary greatly, so check they’re affordable alongside your mortgage, insurance, and other expenses.
Is the property a long-term fit? Think ahead—does the layout, size and location suit your future plans like starting a family or downsizing?

Key Documents to Review

Once you’ve found a home you like, the agent will supply important documentation. Here’s what to look for and why it matters:

LIM Report (Land Information Memorandum)

Issued by the local council, the LIM includes details on:

Building consents and zoning
Risk factors like flooding or erosion
Rates payable and infrastructure (e.g. sewerage and stormwater)

Learn more about LIM reports.

Builder’s Report

This independent inspection highlights potential structural issues or maintenance concerns. Even if the vendor provides one, it’s recommended to commission your own—especially for peace of mind.

Learn more about builders' reports.

Valuation Report

A registered valuer assesses the market value of the property. This is helpful when deciding your offer and is often required by your lender.

Certificate of Title

Confirms ownership, land size, and any restrictions (like easements or covenants) that could affect how you use or alter the property.

Property File

Available through the local council, this includes historic plans, consents, and correspondence—particularly useful for properties that have been renovated or extended.

Don’t Forget the Finance Side

Part of your due diligence includes confirming your finance. Work with a mortgage adviser to:

Get pre-approval on your home loan
Check that the property meets your lender’s criteria

This step ensures you’re financially ready to move quickly when you find the right property.

Disclaimer: We hope this article has provided some helpful information. It's based on our experience and is not intended as a complete guide. Of course, it doesn’t consider your individual needs or situation. If you're thinking about buying or selling a property, you should always get specific advice.

Author

Hannah Hilliam

Hannah is a staff writer at Trade Me, contributing to Trade Me Property. Having bought, sold, and renovated homes herself, she knows first-hand how exciting — and overwhelming — the property journey can be. With a knack for making complex topics feel simple, Hannah focuses on sharing practical, down-to-earth advice to make daunting decisions feel a little less overwhelming.