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February 04, 2019

Deferred Maintenance

Word of the day

Deferred Maintenance

Physical deterioration or loss in value of a building resulting from postponed maintenance to the building. This type of deterioration, sometimes called curable physical depreciation, is normally curable by making the necessary repairs and improvements.

A prospective purchaser of a building in which there is a significant amount of deferred maintenance should be especially careful to factor the estimated repair and replacement costs into an investment analysis of the property.

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