The information memorandum and the listing, checked against the record
An information memorandum (IM) is the selling agent's marketing document for a commercial property. It is a sales document, not a disclosure statement, and in our experience IMs typically carry a disclaimer telling buyers to verify every figure themselves. In our experience, the figures most likely not to match the title and council records are the floor area, the car-park count, which titles are actually included in the sale, and what the zoning or a resource consent condition actually permits.
A worked example (invented, for illustration)
Say an IM for a fictional property, 42 Sample Street, Penrose, describes a light-industrial building of 1,850 m² net lettable area (NLA), 42 on-site car parks, and one title. Checked against the record of title and the council file:
The building's gross floor area (GFA) on the consented plans is 1,690 m². NLA is generally the space a tenant actually leases; GFA is generally the whole footprint including walls and common areas. The exact basis depends on the measurement standard used, so ask which one was applied. An IM that quotes NLA without saying so, next to a valuation or a rating that uses GFA, will look like two different buildings.
Only 34 of the 42 car parks sit on the subject title. The other 8 sit on the neighbouring title, under an easement that says nothing about who maintains the surface or pays for repairs.
The sale is actually two titles, not one: the building's title and a small strip carrying the driveway.
A resource consent condition on file limits hours of operation to 6am-8pm, which the IM does not mention and which may not suit every buyer's intended use.
None of that is unusual. It is exactly the kind of thing an IM's own disclaimer is telling you to go and check.
Where each figure actually lives
Floor area. Compare the IM's stated area against the building consent plans in the council's property file, and ask which measurement basis the IM used. The record of title gives you the land area, not the building's floor area.
Car parks. The record of title shows what is really on which title, not the IM. If parking sits on a separate title, under an easement or under a lease, get the instrument and read what it actually grants.
Titles included. The sale and purchase agreement must correctly identify every title being sold. Where a listing bundles more than one certificate of title as "one property," check the agreement names all of them.
Permitted use. Cross-check the IM's description of permitted use against the council's zoning map and the actual conditions on any resource consent. A consent condition can restrict use, and existing use rights can lapse if a use has been discontinued for more than 12 months, even where the current zone would otherwise allow it.
What to ask the agent, in writing
Which title or titles are included in the sale, exactly as they appear on the record of title.
Whether a code compliance certificate was issued for all building work, and if not, what wasn't consented.
Whether the building currently has a building warrant of fitness, and for how long.
The building's seismic rating if one has been done, and whether it is on MBIE's earthquake-prone buildings register.
Any conditions on a resource consent that could restrict use, hours or future changes.
The exact car-park entitlement and which title(s) it sits on.
Getting these answers in writing, before you make an offer or during due diligence, is the difference between a query you can still walk away from and one you find out about after settlement.
The same discipline applies to floor areas and quantities generally. If a plan or a schedule is involved anywhere in the deal, our guide to material takeoffs from plans covers how to measure them properly, and Takeoff Verification is a paid check for exactly that. For where a desk-based check like this one fits against a valuer, an engineer or a lawyer, see who we help.
What this doesn't tell you
We work from the documents you send and what the public record shows, not from anything the vendor or council holds privately.
This is not a valuation, a structural opinion or legal advice on title.
A desk check cannot confirm a building's physical condition. That needs a site inspection.
FAQ
What is an information memorandum in NZ commercial real estate?
It is the selling agent's marketing document, usually including a description, floor areas, car parking, tenancy details if any, and photographs. It is prepared to sell the property, not to disclose everything a buyer needs to know.
Can I rely on the IM if the figures turn out to be wrong?
In our experience, IMs are typically expressly qualified and tell buyers to verify every figure. Real estate agents are also required not to mislead a customer and not to withhold information that should in fairness be provided, but that duty sits alongside, not instead of, your own checking.
Why do floor areas differ between the IM, the valuation and the council records?
Different figures often measure different things. Net lettable area (generally what a tenant leases) and gross floor area (generally the whole footprint) are not the same number, and a valuation may use yet another basis. Ask which measurement standard each document is using.
How do I check how many car parks are really on the title?
Order the record of title and read the registered interests. If parking is not on the same title as the building, it will show as an easement, a separate title, or a lease arrangement, not as a plain statement that it belongs to the property.
What should I ask the agent in writing?
At minimum: which titles are included, the current code compliance and BWOF status, the seismic rating if known, any restrictive resource consent conditions, and the exact car-park entitlement.
What does a desk-based listing check cost compared with a building report?
A desk-based check reads records that are mostly already available or cheap to obtain (title, LIM, property file, planning maps). A building report requires a site visit by a qualified inspector and is priced separately. Doing the desk check first tells you whether a report, and which kind, is worth commissioning.
Get the listing checked before you offer
Send us the IM, the listing, or a due diligence pack, and we will compare what it says against what the title, the LIM and the council's zoning maps actually show, in writing. Independent analyst, not a valuer, engineer, surveyor, building inspector or lawyer.
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