Property Management
What is a 'property condition assessment' (PCA) for commercial property management in Hawaii?
AA. A government inspection required before a commercial property can be leased
BB. A professional evaluation of a commercial property's physical condition, including building systems, structural elements, and deferred maintenance; used in acquisition due diligence and for capital planning✓ Correct
CC. An annual report required by Hawaii law for all commercial buildings
DD. An appraisal of the commercial property's value based on its condition
Explanation
A Property Condition Assessment (PCA) or Property Condition Report (PCR) evaluates the physical condition of commercial property. It identifies existing deficiencies, estimates repair costs, and projects future capital expenditures.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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