Standard Guide for Property Condition Assessments ...

1 Designation: E2018 15 Standard Guide forProperty Condition Assessments : Baseline PropertyCondition Assessment Process1 This Standard is issued under the fixed designation E2018; the number immediately following the designation indicates the year oforiginal adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. Asuperscript epsilon ( ) indicates an editorial change since the last revision or The purpose of this Guide is to define goodcommercial practice in the United States of America forconducting a baselineproperty Condition assessment(PCA)

2 Ofthe improvements located on a parcel of commercial real estateby performing a walk-through survey and conducting researchas outlined within this Deficiencies In defining good commercialand customary practice for conducting a baseline PCA, thegoal is to identify and communicate physical deficiencies to auser. The termphysical deficienciesincludes the presence ofconspicuous defects and material deferred maintenance of asubject Property s material systems, components, or equipmentas observed during completion of the PCA. This definitionspecifically excludes deficiencies that may be remedied withroutine maintenance, miscellaneous minor repairs, normaloperating maintenance, etc.

3 , and excludes de minimis condi-tions that generally do not present material physical deficien-cies of the subject Survey This Guide outlines proceduresfor conducting a walk-through survey to identify the subjectproperty s physical deficiencies, and recommends varioussystems, components, and equipment that should be observedby the field observer and reported in theproperty conditionreport(PCR). Reviews and Interviews The scope of thisguide includes document reviews, research, and interviews toaugment the walk-through survey so as to assist the consul-tant s understanding of the subject Property and identificationof physical Condition Report The work product result-ing from completing a PCA in accordance with this Guide is aProperty Condition Report (PCR).

4 The PCR incorporates theinformation obtained during the Walk-Through Survey, theDocument Review and Interviews sections of this Guide , andincludes Opinions of Costs for suggested remedies of thephysical deficiencies Objectives in the development of this guideare to:(1)define good commercial and customary practice forthe PCA of primary commercial real estate improvements;(2)facilitate consistent and pertinent content in PCRs;(3)developpragmatic and reasonable recommendations and expectationsfor site observations, document reviews and research associ-ated with conducting PCAs and preparing PCRs;(4)establishreasonable expectations for PCRs;(5)assist in developing anindustry baseline Standard of care for appropriate observationsand research.

5 And(6)recommend protocols for consultants forcommunicating observations, opinions, and recommendationsin a manner meaningful to the Beyond Scope The use of this Guide isstrictly limited to the scope set forth in this section. Section11andAppendix X1of this Guide identify, for informationalpurposes, certain physical conditions that may exist on thesubject Property , and certain activities or procedures (not an allinclusive list) that are beyond the scope of this Guide but maywarrant consideration by parties to a commercial real estatetransaction to enhance the of This Guide This Guide consists ofseveral sections, an Annex and two (2) Appendixes.

6 Section1is the Scope. Section2on Terminology contains definitions ofterms both unique to this Guide and not unique to this Guide ,and acronyms. Section3sets out the Significance and Use ofthis Guide , and Section4describes the User s guidelines for the main body ofthe PCR, including the scope of the Walk-Through Survey,preparation of the Opinions of Costs to Remedy PhysicalDeficiencies, and preparation of the PCR. Section11providesadditional information regarding out of scope considerations( ).Annex A1provides requirements relating to specificasset types, and where applicable, such requirements are to beconsidered as if integral to this X1providesthe user with additional PCA scope considerations, whereby auser may increase this Guide s scope of due diligence to beexercised by the consultant beyond this Guide s baseline X2andAppendix X3outline the approach toAccessibility Guide is under the jurisdiction of ASTM CommitteeE50on EnvironmentalAssessment.

7 Risk Management and Corrective Action and is the direct responsibil-ity of Real Estate Assessment and edition approved Aug. 15, 2015. Published November 2015. Originallyapproved in 1999. Last previous edition approved in 2008 as E2018 08. ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United StatesThis international Standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for theDevelopment of International standards , Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Copyright by ASTM Int'l (all rights reserved); Thu Apr 27 15:45:35 EDT 2017 Downloaded/printed byTodd Gourley (Reveal360 Inspection Services LLC) pursuant to License Agreement.

8 No further reproductions Buildings Should the subject Property consistof multiple buildings, it is the intent of this Guide that only asingle PCR be produced by the consultant to report on all of theprimary commercial real estate Concerns This Guide does not purport to ad-dress all of the safety concerns, if any, associated with thewalk-through survey. It is the responsibility of the consultantusing this Guide to establish appropriate safety and healthpractices when conducting a OF Beyond of This of Terms Specific to This and Acronyms3 Significance and of May PCR of Engagement4 User s Disclosure5 Property Condition of s Duties6 The of the of the Field of the of the Field of the PCR Field Observer and PCR Reviewer May Be a Single a Professional Architectural or Engineering Service7 Document Review and and Agency Provided Provided

9 Documentation and Considerations9 Opinions of Costs to Remedy Physical of Costs Attributes10 Property Condition and Reviews and of of Scope , Guarantee, and Code Compliance Considerations12 KeywordsAnnex A1 GUIDANCE AND ENHANCED DUE DILIGENCE Office BuildingsAppendixX1 GUIDANCE AND ENHANCED DUE DILIGENCE of Measurements and Plain DesignationAppendixX2 AMERICANS WITH DISABILITIES ACT (ADA) ACCESSIBILITYSURVEYA ppendixX3 FAIR HOUSING ACT (FHA) ACCESSIBILITY SURVEY2. This section provides definitions, descriptions of terms,and a list of acronyms, where applicable, for the words used inthis Guide .

10 The terms are an integral part of the Guide and arecritical to an understanding of this Guide and its , n designation reserved by law for a personprofessionally qualified, examined, and registered by the ap-propriate governmental board having jurisdiction, to performarchitectural , n professional services conducted by anarchitect in connection with the design and construction ofbuildings, or built codes, n rules and regulations adopted bythe governmental authority having jurisdiction over the com-mercial real estate, which govern the design, construction,alteration, and repair of such commercial real department records, n records maintainedby or in possession of the local government authority withjurisdiction over the construction, alteration, use, or demolitionof improvements on the subject Property .