EnvironmentalIntermediateAlaska Exam

In Alaska, a property's value may be reduced if it is located in a 'tsunami runup zone.' This type of value reduction is most accurately classified as:

APhysical deterioration
BExternal obsolescence due to the property's geographic risk exposureCorrect
CFunctional obsolescence, which most practitioners would generally accept
DCurable depreciation

Why External obsolescence due to the property's geographic risk exposure Is Correct

Answer B: External obsolescence due to the property's geographic risk exposure

Tsunami runup zone risk is a negative external condition — it is caused by the property's geographic location relative to coastal hazards, not by the property's physical condition or design. This creates external obsolescence — a loss in value caused by factors outside the property's boundaries.

Exam Tip: Environmental

Environmental questions test knowledge of hazards like asbestos, lead-based paint, radon, and mold. Know the disclosure requirements and when a professional inspection is required. CERCLA liability is strict, joint, and several.

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