Property buyers are being warned about third-party websites charging as much as $1,598 for Land Information Memorandum reports that cost $305 when ordered directly from Whanganui District Council.
The council says some websites are charging large markups for reports that customers can obtain directly, without receiving a faster service.
According to 1News and Local Democracy Reporting, one website advertised a residential LIM report for a Whanganui property at $1,299, with another $299 for express delivery.
The council became aware of the website after a real estate agent alerted a resident who had paid an inflated price for a supposedly faster report.
Regulatory and Compliance Operations Manager Jason Shailer said customers were paying intermediaries unnecessarily for information supplied by the council.
He said using such websites did not accelerate the council's processing of LIM applications.
What a LIM report contains
A Land Information Memorandum, commonly called a LIM, provides information a council holds about a particular property.
It can include rates, valuations, building consents, drainage, zoning, resource consents and other records relevant to a property purchase.
Reports may also contain information about natural hazards such as flooding, erosion, earthquakes and slope instability, as well as contaminated sites and other property-related matters.
For buyers checking a home before purchase, these records can help identify issues that may require further investigation.
The council's warning follows similar concerns raised by Waitaki District Council about third-party providers charging significant markups.
How to order directly from the council
Whanganui District Council charges $305 for a residential or rural LIM report and $340 for a commercial report.
Applications can be submitted through the council's online services using a RealMe account. Completed reports are sent by email.
Customers can also apply in person at the council's Customer Services centre at 101 Guyton Street, Whanganui, between 8.30am and 5pm on weekdays.
Under the statutory processing requirement, the council must complete a LIM within 10 working days after receiving both the application and payment.
The council says paying an outside company for an express service will not shorten that processing period.
Working days exclude weekends, public holidays and the period from 20 December to 10 January.
Applicants who cancel an order may receive a partial refund depending on when the cancellation occurs. The council says additional surcharges are non-refundable.
Buyers can use the council's official LIM application page or contact the council on 06 349 0001.
Fees and application procedures may differ between councils. Buyers should check the relevant council's official website before paying another provider for property information.
