Property Valuation
When an appraiser in NC notes that a home has an 'addition' that was built without permits, this is most relevant to which form of depreciation?
AExternal obsolescence
BFunctional obsolescence — specifically a superadequacy or legal non-conformity✓ Correct
CPhysical deterioration
DEconomic obsolescence
Explanation
An unpermitted addition creates functional obsolescence (legal non-conformity) because the improvement may not comply with current building codes and may need to be remediated.
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