Texas Property Tax Consultant Practice Exam

What type of obsolescence is defined as curable but not necessarily functional?

1. Physical curable obsolescence

2. Economic or external obsolescence

3. Functional incurable obsolescence

4. Functional curable obsolescence

The correct answer is: Physical curable obsolescence

The correct choice is identified as functional curable obsolescence. This type of obsolescence refers to a situation where certain aspects of a property can be improved or fixed, which would enhance its value and usage; however, these issues do not necessarily stem from a lack of function or practicality. Functional obsolescence typically indicates that a property's design or features are outdated or do not meet modern standards. When this condition is termed "curable," it implies that the issues can be addressed through reasonable renovations or improvements, making it feasible to restore the property’s value. In contrast, physical curable obsolescence pertains specifically to tangible wear and tear on the property that can also be repaired but focuses on physical deterioration rather than functional design flaws. Economic or external obsolescence, on the other hand, relates to depreciation in property value due to external factors in the environment, such as economic downturns, neighborhood decline, or changes in zoning laws, rather than issues with the property itself. Functional incurable obsolescence refers to flaws or deficiencies in property design that cannot be easily remedied or are overly costly to correct, making them less appetizing for investment. Understanding these distinctions helps clarify the nature of each type of obsolescence regarding property valuation and