Depreciation
Curable and incurable depreciation
Whether a loss in value pays for itself to correct
Depreciation is curable when correcting it returns at least what the correction costs, and incurable when it does not. The test is economic rather than technical — almost any defect can be repaired, and the only question is whether the repair earns its own price back. The same defect can therefore be curable in one market and incurable in another.
How the exam asks about it
Physical deterioration and functional obsolescence each split into curable and incurable. External obsolescence never does: its cause sits outside the property line, so nothing the owner spends on the property removes it.
Quick check: Curable and incurable depreciation
One question. Pick an answer to see the explanation.
Which term is being defined: “Whether a loss in value pays for itself to correct”?
Related terms
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