How To Write A Property Condition Report

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1 Page 1 of 46 Inspection Report Stockbridge GA Property Address: Stockbridge GA South East Building Consultants Ray Thoroman Atlanta GA

2 Page 2 of Serving Atlanta GA and the Entire South East

3 Page 3 of 46 Table of Contents Cover Page Table of Contents Intro Page 1 General Physical Condition 2 Utilities 3 Structural Frame and Building Envelope 4 Mechanical and Electrical System 5 Interior Elements (Tenants) 6 Additional Considerations General Summary Invoice

4 Page 4 of 46 Date: 2/19/2013 Time: 09:00 AM Report ID: Property: Stockbridge GA Executive Summary: Customer: Stockbridge GA Commercial Strip Mall Real Estate Professional: This is a Property Condition Report "PCR" using the ASTM E2018 as a standard guideline to describe the condition of building or buildings for the property inspected. This process involves observation of the property by a person or entity. It can include interviews of sources, and reviews of available documentation for the purpose of developing an opinion and preparing a PCR of a commercial real estate's current physical condition. At the option of the user, a PCA may include a higher level of inquiry and due diligence than the baseline scope described within this guide or, at the users option, it may include a lower level of inquiry or due diligence than the baseline scope described in this guide. If there are such deviations from this guideã½s scope it should be disclosed here on this page. A PCR is a written report, prepared in accordance with the recommendations contained in this guide, that outlines the consultantã½s observations, opinions as to the subject property"s condition, and opinions of probable costs to remedy any material physical deficiencies observed. In defining good commercial and customary practice for conducting a baseline PCA, the goal is to identify and communicate physical deficiencies to a user. The term physical deficiencies means the presence of conspicuous defects or material deferred maintenance of a subject property material systems, components, or equipment as observed during the field observers walk-through survey. This definition specifically excludes deficiencies that may be remedied with routine maintenance, miscellaneous minor repairs, normal operating maintenance, etc., and excludes de minimis conditions that generally do not present material physical deficiencies of the subject property. A walk-through survey, conducted during the field observers site visit of the subject property, that consists of nonintrusive visual observations, survey of readily accessible, easily visible components and systems of the subject property. Concealed physical deficiencies are excluded. It is the intent of this guide that such a survey should not be considered technically exhaustive. It excludes the operation of equipment by the field observer and is to be conducted without the aid of special protective clothing, exploratory probing, removal of materials, testing, or the use of equipment, such as scaffolding, metering/testing equipment, or devices of any kind, etc. It is literally the field observers visual observations while walking through the subject property. The purpose of the PCA is to observe and report, to the extent feasible pursuant to the processes prescribed herein, on the physical condition of the subject property. Deviations from the Guide: Please refer to our signed agreement detailing the scope of this inspection and PCR. Recommendations: It is recommended that the user of this report review both summaries and the entire report. The complete report may include additional information of concern. This property and subsequent building (s) has been inspected by Ray Thoroman, South East Building Consultants. Comment Key and Definitions: The following definitions of comment descriptions represent this inspection report. All comments by the inspector should be considered before purchasing this home. Any recommendations by the inspector to repair, replace, or require immediate attention suggests a second opinion or further inspection by a qualified

5 Page 5 of 46 contractor. All costs associated with further inspection fees and repair or replacement of item, component or unit should be considered before you purchase the property. Inspected: This term means I visually observed the item, component or unit and if no other comments were made then it appeared to be functioning as intended allowing normal wear and tear. The notation does not mean that the item is perfect but does meet a reasonable standard on the day of inspection. : The item, component or unit is not functioning as intended or needs further inspection by a qualified contractor. Items, components or units that can be repaired to satisfactory condition may not need replacement. Requires Immediate Attention: The item, component or unit needs immediate attention by a qualified professional or contractor for the safety or health of the occupants of the building. Could cause further major deterioration, or complete failure of a system or component. Worsen appreciably, cause damage, or be a serious hazard. Not Inspected: I did inspect this item, component or unit and made no representations of whether or not it was functioning as intended and will state a reason for not testing or operating Building Use: Retail Construction Type: Masonary Number of floors/stories: 1- Story Approximate building size: square feet Age Of building: Approximately 5 years old Apparent occupancy status: 90% Client Is Present: No, Robert with Property Management was present Weather: Mostly sunny Temperature: Over 80 during inspection

6 Page 6 of General Physical Condition Items A. Basic Information Inspected Hello John, Thank you for allowing me to inspect your future building. During the time you own the building you may call me anytime for information about anything in this report, or anything else you need to know or understand. This Inspection Report will be uploaded to my web server for 2 years after I it to you, the report can be forwarded to anyone by simply forwarding the sent to view the report.if you have any questions please do not hesitate in calling or with any further help regarding the inspection. Thank You, Ray Thoroman South East Building Consultants ray@atlantacommercialbuildinginspector.com B. Purpose and Scope Inspected You have contracted with us to through verbal communication and (s) to perform an inspection in accordance with ASTM industry standards for the commercial inspection profession. This is different from our technically exhaustive inspection which takes several days to complete, involves the use of specialized instruments, the dismantling of equipment, video scanning, destructive testing and laboratory analysis of possible contaminates. Our purpose is to identify defects or adverse conditions that need repair or replacement, are safety concerns or may lead to costs that would significantly affect your evaluation of the property at the time of this inspection. The purpose of the Inspection is to document in a narrative format the condition of the building at the time of the inspection. The inspection is a visual snapshot in time regarding the condition of the systems and components of the building at the time of the inspection and is not a warranty nor an insurance policy, but that should not deter you purchasing such a policy. The building has deferred maintenance, as with all building systems, components, items, etc; need to be maintained properly though the years. We do not document items which are cosmetic in nature or would be apparent to the average person or document items that pertain to an building of this age weather stripping on doors, rust staining, loose door knobs or items of that nature. Pictures are placed in the report as a courtesy to help you understand the reason for the narrative. There is an summary at the end of this report which you could use as a check-list if needed. Please read the entire report C. Topography Inspected The grounds are generally level to small slope around the building with positive drainage away from the structure. D. Paving, Curbing and Parking (1) Parking lot had one area rear left of building in front of dump that had some settlement occurring and cracking at concrete & asphalt. Recommend repairing to prevent further significant damage.

7 Page 7 of 46 D. Item 1(Picture) General parking lot views D. Item 2(Picture) General parking lot views D. Item 3(Picture) General parking lot views D. Item 4(Picture) Settlement and cracking

8 Page 8 of 46 D. Item 5(Picture) D. Item 6(Picture) D. Item 7(Picture) (2) One parking space barrier in front of 113-G was loose/damaged. Recommend repair. D. Item 8(Picture) E. Flatwork (sidewalks, plazas, patios) Inspected All sidewalks and patios appeared in good condition. No significant issues noted.

9 Page 9 of 46 E. Item 1(Picture) E. Item 2(Picture) E. Item 3(Picture) F. Landscaping, Appurtenances and Retaining walls Block paver retaining wall left side rear of building had evidence of erosion and soot travel occurring at uncovered ground. Recommend installing proper ground cover and drainage to prevent further issues. Also there was evidence of settlement at ground in front of retaining wall behind trash bin and small leaning at the retaining wall. I again, recommend installing proper ground cover and proper drainage to prevent further issues. Recommend evaluate the retaining wall to ensure reinforcement or repairs are not necessary at this time by retaining wall and landscape contractors.

10 Page 10 of 46 F. Item 1(Picture) F. Item 2(Picture) F. Item 3(Picture) F. Item 4(Picture) G. DECKS, BALCONIES, STOOPS, STEPS, AREAWAYS, PORCHES AND APPLICABLE RAILINGS Front right patio metal railing was rusting. Recommend sealant coat to prevent further damage. G. Item 1(Picture) Add sealant coat G. Item 2(Picture) Add sealant coat

11 Page 11 of 46 H. Signage and exterior lighting (1) Road signage was in good condition for age. Exterior lighting was in good condition. H. Item 1(Picture) (2) There was one stop or yield sign pole damaged at rear right of parking lot. One light pole right front corner was leaning/damaged. Front main signage had loose electrical J-box. Recommend repair issues to prevent further damage or injury.

12 Page 12 of 46 H. Item 2(Picture) H. Item 3(Picture) H. Item 4(Picture) Loose electric J-box I. Suite Numbers Inspected 10 units total for this building. One unit labeled 105-C was vacant. Doors were locked (Robert did not have access) to units 105-C, 111-F (Liberty Tax) and rear Riser Room. I was not able to access or visually inspect these units/areas.

13 Page 13 of 46 I. Item 1(Picture) Could not access I. Item 2(Picture) I. Item 3(Picture) I. Item 4(Picture) I. Item 5(Picture) I. Item 6(Picture) Could not access

14 Page 14 of 46 I. Item 7(Picture) I. Item 8(Picture) I. Item 9(Picture) Could not access I. Item 10(Picture) I. Item 11(Picture) I. Item 12(Picture) Styles & Materials General Topography: Flat and Sloped Access and Egress: Paved Driveway Paving Curbing Parking: Asphalt Parking Lot

15 Page 15 of Utilities Items A. Water Inspected The water source is the public utility company. B. Electricity Inspected The source for electricity is the public utility company. C. Natural gas Inspected The fuel source is natural gas and is supplied by the public utility company. C. Item 1(Picture) C. Item 2(Picture) D. Sanitary Sewer Inspected Sanitary waste discharges into the municipal sewer at the street. Styles & Materials Water Source: Public Utility Sanitary Sewer: Public sewer system Electric source: Power company Public Utility Gas supply: Natural Gas Out of Scope Issues: Utilities: Operating conditions of any systems or accessing manholes or utility pits.

16 Page 16 of Structural Frame and Building Envelope Items A. Foundation Inspected Building foundation appeared visually in good condition at time of inspection. B. Building Frame Masonry block at rear left of building had cracking/failing expansion joint sealant. Recommend repair areas to prevent further damage. B. Item 1(Picture) B. Item 2(Picture) C. B. Item 3(Picture)

17 Page 17 of 46 Sidewall System (exterior wall cladding and components) Stucco cladding in area of unit 113-G had crack/damage. Recommend repair area to prevent further damage. C. Item 1(Picture) D. Fenestration System (i.e. windows, openings, doors etc.) Inspected E. Parapets (protective wall barriers at balcony, roof etc.) Not Inspected Roof parapet wall flashing cap sealant and screws were loose or failing/cracked. Recommend repair areas for preventative maintenance and present leaking.

18 Page 18 of 46 E. Item 1(Picture) E. Item 2(Picture) E. Item 3(Picture) E. Item 4(Picture)

19 Page 19 of 46 E. Item 5(Picture) E. Item 6(Picture) E. Item 7(Picture) E. Item 8(Picture) F. Roofing Inspected (1) Roof covering consisted of what appears to be TPO type. Covering overall appeared in good normal condition for its age at this time.

20 Page 20 of 46 F. Item 1(Picture) F. Item 2(Picture) F. Item 3(Picture) F. Item 4(Picture) (2) Evidence of standing water near rear roof edge. Standing water is caused from condensation run-off for HVAC units. Recommend running condensation piping into the gutters to prevent this issue. Recommend evaluate roof by roof contractor to see if repairs are needed to prevent standing water.

21 Page 21 of 46 F. Item 5(Picture) F. Item 6(Picture) F. Item 7(Picture) G. Gutters and downspouts Inspected Styles & Materials Foundation: Masonry Roof Structure: Steel trusses Ventilation: None found Siding Style: Cement stucco Masonry Block Viewed roof covering from: Ground Ladder Walked roof Building Type: Masonry Block Method used to observe attic: No attic access Exterior Entry Doors: Insulated glass Siding Material: Masonry Roof-Type: Flat Attic Insulation: None Window Types: Thermal/Insulated Roof Covering: TPO

22 Page 22 of Mechanical and Electrical System Items A. Plumbing water supply and Distribution and Fixtures (1) Unit 115H had toilet that ran continuously. Recommend repair to prevent further damage or energy waste. A. Item 1(Picture) (2) Unit 113G had water pipe used for water heater that was not properly installed. This could cause leaking or damage. Recommend install proper piping by qualified plumber. A. Item 2(Picture) B. Plumbing Drain, Waste and Vent Systems (1) Unit 109C (Firehouse subs) had kitchen utility sink drain pipe leak. Recommend repair by qualified plumber.

23 Page 23 of 46 B. Item 2(Picture) B. Item 1(Picture) (2) Unit 103B had loose sink mount at rear bathroom. Recommend repair to prevent damage or injury. B. Item 3(Picture) B. Item 4(Picture) C. Domestic hot water production Inspected All water heating devices and tanks were functional at time of inspection for the units.

24 Page 24 of 46 C. Item 1(Picture) C. Item 2(Picture) C. Item 3(Picture) D. Heating and AC Equipment (1) There were total 11 roof HVAC package units installed. All were approximately 5 years old. No major visible issues were noted at time of inspection and all units were functional. If units have not had service by licensed HVAC contractor in past 12 months, I recommend service/cleaning.

25 Page 25 of 46 D. Item 1(Picture) D. Item 2(Picture) D. Item 3(Picture) D. Item 4(Picture) D. Item 5(Picture) D. Item 6(Picture)

26 Page 26 of 46 D. Item 7(Picture) D. Item 8(Picture) D. Item 9(Picture) D. Item 10(Picture) D. Item 11(Picture) (2) A few of the HVAC coil fins were damaged. One at far left corner had what appears to be hail damage. This sometimes can effect the performance of the unit, therefore recommend evaluate by licensed HVAC contractor.

27 Page 27 of 46 D. Item 12(Picture) Evidence of hail damage D. Item 13(Picture) Common damage (3) Condensation piping for all 11 units at roof discharged directly next to units on roof. Recommend installing piping and extending so that it drains direct into the gutter system. D. Item 14(Picture) D. Item 15(Picture) E. Heating & Air conditioning - Ventilation Equipment There was evidence of condensation leaking/drips at HVAC duct pipes at most units (with HVAC units installed). Evidence of condensation stains at drop ceiling tiles. I recommend having the individual units have HVAC contractors service/repair duct piping to prevent further leakage or stains.

28 Page 28 of 46 E. Item 1(Picture) E. Item 2(Picture) E. Item 3(Picture) E. Item 4(Picture)

29 Page 29 of 46 E. Item 5(Picture) E. Item 6(Picture) E. Item 7(Picture) F. Electric Service and Meter Inspected, (1) Main electrical service system consisted of three 400 amp service and eight 200 amp services. All were 3 phase 4 wire 208/120v systems. Each unit had its own main electrical service panel. There was one HP (house panel) located near unit 101A that operated the ground electrical such as irrigation, sign lighting or exterior lighting.

30 Page 30 of 46 F. Item 1(Picture) F. Item 2(Picture) F. Item 3(Picture) F. Item 4(Picture)

31 Page 31 of 46 F. Item 5(Picture) F. Item 6(Picture) F. Item 7(Picture) F. Item 8(Picture)

32 Page 32 of 46 F. Item 9(Picture) F. Item 10(Picture) F. Item 11(Picture) F. Item 12(Picture) (2) Unit 119J electric service main panel had bottom breaker knock-out missing. Recommend install cap.

33 Page 33 of 46 F. Item 13(Picture) G. Electric Distribution Unit 115H had rear damaged or disconnected ceiling light fixture. Recommend repair as needed. G. Item 1(Picture) H. Exhaust, Vents (1) Bathroom exhaust vent fan for unit 107D appears to be causing moisture damage. Evidence of water stains and small mold growth at ceiling tiles. Recommend repair exhaust vent/fan. Recommend remove mold tile.

34 Page 34 of 46 H. Item 1(Picture) H. Item 2(Picture) (2) Restaurant exhaust vent had grease discharge on roof covering. Recommend clean exhaust and roof to prevent damage. H. Item 3(Picture)

35 Page 35 of 46 Styles & Materials Plumbing Water Supply (into building): Not visible Water Heater Power Source: Electric Gas (quick recovery) Number of Heat Systems (excluding wood): Eleven total Ductwork: Insulated and Non-insulated Central Air Manufacturer: LENNOX TRANE Units individually metered (Electrical): Yes Plumbing Water Distribution (inside building): Copper CPVC Water Heater Capacity: Three units Energy Source for Heat: Natural gas Cooling Equipment Type: Air conditioner unit Number of AC Only Units: Eleven units Panel Type: Circuit breakers Plumbing Waste: PVC Heat Type: Forced Air Heat System Brand: LENNOX TRANE Cooling Equipment Energy Source: Electricity Electrical Service Conductors: Below ground Aluminum 3 Phase 208 Volts Out of Scope Issues: Plumbing: Determining adequate pressure and flow rate, fixture-unit values and counts, verifying pipe sizes, or verifying the point of discharge for underground systems. Observation of flue connections, interiors of chimneys, flues or boiler stacks, or tenant owned or maintained equipment. Removing of electrical panel and device covers, except if removed by building staff, EMF issues, electrical testing, or operating of any electrical devices, or opining on process related equipment or tenant owned equipment. Examining of cables, sheaves, controllers, motors, inspection tags, or entering elevator/escalator pits or shafts.

36 Page 36 of Interior Elements (Tenants) Items A. Ceiling, Walls, Floors (1) Units 113 & 103 had evidence of settlement cracks, multiple tiles. Due to type of cracks and spanning several feet, I recommend evaluate by qualified foundation contractor. Recommend repair/seal cracks to prevent further damage or injury. A. Item 1(Picture) Unit 113 A. Item 2(Picture) Unit 113 A. Item 4(Picture) Unit 103 A. Item 3(Picture) Unit 103

37 Page 37 of 46 A. Item 5(Picture) Unit 103 A. Item 6(Picture) Unit 103 A. Item 7(Picture) Unit 103 (2) There was evidence of moisture stains at ceiling tiles in front service rooms at units 109, 113, 103 and 101. These were likely caused from failing exterior cladding/ or roof sealant issues. Recommend evaluate by qualified contractor and repair as needed.

38 Page 38 of 46 A. Item 8(Picture) Unit 109 A. Item 9(Picture) Unit 103 (3) Unit 101 had evidence of moisture stains and water damage at interior wall. Tenant stated this was caused from his personal equipment which is no longer used and a small roof leak back in No current moisture noted. Recommend repair stains as needed or desired. A. Item 10(Picture) A. Item 11(Picture) A. Item 12(Picture)

39 Page 39 of 46 (4) Unit 101 had evidence of water stains at ceiling tiles under the main water supply pipe. No current leaking noted, however recommend evaluate by qualified plumber and repair as needed. A. Item 13(Picture) A. Item 14(Picture) Styles & Materials Ceiling Materials: Suspended ceiling panels Ceiling Tile Wall Material: Sheetrock Paneling Wood Floor Covering(s): Carpet Laminated T&G Tile

40 Page 40 of Additional Considerations Additional Considerations: There may be additional or conditions at a property that users may wish to assess in connection with commercial real estate that are outside the scope of this guide (Out of Scope considerations). Outside Standard Practices. Whether or not a user elects to inquire into non-scope considerations in connection with this guide or any other PCA is not required for compliance by this guide. Other standards or protocols for assessment of conditions associated with nonscope conditions may have been developed by governmental entities, professional organizations, or other private entities. Additional Issues: Following are several non-scope considerations that users may want to assess in connection with E 2018 commercial real estate. No implication is intended as to the relative importance of inquiry into such non-scope considerations, and this list of non-scope considerations is not intended to be all-inclusive: Seismic Considerations, Design Consideration for Natural Disasters (Hurricanes, Tornadoes, High Winds, Floods, Snow, etc.), Insect/Rodent Infestation, Environmental Considerations, ADA Requirements, FFHA Requirements, Indoor Air Quality, and Property Security Systems. Items A. Document Review and Interviews Inspected No documents were provided from review. Only interview was with Robert the property manager. Robert knew little about the building as his company just started to manage the building. B. Out of Scope Considerations Inspected Activity Exclusions The activities listed below generally are excluded from or otherwise represent limitations to the scope of a PCA prepared in accordance with this guide. These should not be construed as all-inclusive or imply that any exclusion not specifically identified is a PCA requirement under this guide. Removing or relocating materials, furniture, storage containers, personal effects, debris material or finishes; conducting exploratory probing or testing; dismantling or operation. This should include material life-safety/building code violations. ing of equipment or appliances; or disturbing personal items or property, that obstructs access or visibility. Preparing engineering calculations (civil, structural, mechanical, electrical, etc.) to determine any system s, component s, or equipment s adequacy or compliance with any specific or commonly accepted design requirements or building codes, or preparing designs or specifications to remedy any physical deficiency. Taking measurements or quantities to establish or confirm any information or representations provided by the owner or user, such as size and dimensions of the subject property or subject building; any legal encumbrances, such as easements; dwelling unit count and mix; building property line setbacks or elevations; number and size of parking spaces; etc. Reporting on the presence or absence of pests such as wood damaging organisms, rodents, or insects unless evidence of such presence is readily apparent during the course of the field observer s walk-through survey or such information is provided to the consultant by the owner, user, property manager, etc. The consultant is not required to provide a suggested remedy for treatment or remediation, determine the extent of infestation, nor provide opinions of probable costs for treatment or remediation of any deterioration that may have resulted. Reporting on the condition of subterranean conditions, such as underground utilities, separate sewage disposal systems, wells; systems that are either considered process related or peculiar to a specific tenancy or use; wastewater treatment plants; or items or systems that are not permanently installed. Entering or accessing any area of the premises deemed to pose a threat of dangerous or adverse conditions with respect to the field observer or to perform any procedure, that may damage or impair the physical integrity of the property, any system, or component. Providing an opinion on the condition of any system or component, that is shutdown, or whose operation by the field observer may increase significantly the registered electrical demand-load; however, the consultant is to provide an opinion of its physical condition to the extent reasonably possible considering its age, obvious condition, manufacturer, etc. Evaluating acoustical or insulating characteristics of systems or components. Providing an opinion on matters regarding security of the subject property and protection of its occupants or users from unauthorized access. Operating or

41 Page 41 of 46 witnessing the operation of lighting or other systems typically controlled by time clocks or that are normally operated by the building s operation staff or service companies. Providing an environmental assessment or opinion on the presence of any environmental issues such as asbestos, hazardous wastes, toxic materials, the location and presence of designated wetlands, IAQ, etc. Warranty, Guarantee, and Code Compliance Exclusions: By conducting a PCA and preparing a PCR, the consultant merely is providing an opinion and does not warrant or guarantee the present or future condition of the subject property, nor may the PCA be construed as either a warranty or guarantee of any of the following: Any system s or component s physical condition or use, nor is a PCA to be construed as substituting for any system s or equipment s warranty transfer inspection; Compliance with any federal, state, or local statute, ordinance, rule or regulation including, but not limited to, building codes, safety codes, environmental regulations, health codes or zoning ordinances or compliance with trade/design standards or the standards developed by the insurance industry; however, should there be any conspicuous material present violations observed or reported based upon actual knowledge of the field observer or the PCR reviewer, they should be identified in the PCR; Compliance of any material, equipment, or system with any certification or actuation rate program, vendor s or manufacturer s warranty provisions, or provisions established by any standards that are related to insurance industry acceptance/approval, such as FM, State Board of Fire Underwriters, etc. Additional/General Considerations: Further Inquiry: There may be physical condition issues or certain physical improvements at the subject property that the parties may wish to assess in connection with a commercial real estate transaction that are outside the scope of this guide. Such issues are referred to as non-scope considerations and if included in the PCR, should be identified. Out of Scope Considerations: Whether or not a user elects to inquire into non-scope considerations in connection with this guide is a decision to be made by the user. No assessment of such non-scope considerations is required for a PCA to be conducted in compliance with this guide. Other Standards: There may be standards or protocols for the discovery or assessment of physical deficiencies associated with non-scope considerations developed by government entities, professional organizations, or private entities, or a combination thereof. Additional Issues: No implication is intended as to the relative importance of inquiry into such nonscope considerations,and this list of non-scope considerations is not intended to be all-inclusive: Seismic Considerations, Design Consideration for Natural Disasters (Hurricanes, Tornadoes, High Winds, Floods, Snow, etc.), Insect/Rodent Infestation, Environmental Considerations, ADA Requirements, FFHA Requirements, Indoor Air Quality, and Property Security Systems. C. Exhibits (See attached, if any) Not Inspected There are no attachments to be viewed. D. Opinions of probable costs to remedy physical deficiencies Not Inspected Not provided. Please refer to the inspection proposal. Uncertainty Not Eliminated No PCA can wholly eliminate the uncertainty regarding the presence of physical deficiencies and the performance of a subject property s building systems. Preparation of a PCR in accordance with this guide is intended to reduce, but not eliminate, the uncertainty regarding the potential for component or system failure and to reduce the potential that such component or system may not be initially observed. This guide also recognizes the inherent subjective nature of a consultant s opinions as to such issues as workmanship, quality of original installation, and estimating the RUL of any given component or system. The guide recognizes a consultant s suggested remedy may be determined under time constraints, formed without the aid of engineering calculations, testing, exploratory probing, the removal of materials, or design. Furthermore, there may be other alternate or more appropriate schemes or methods to remedy the physical deficiency. The consultant s opinions generally are formed without detailed knowledge from those familiar with the component s or system s performance. Not Technically Exhaustive Appropriate due diligence according to this guide is not to be construed as technically exhaustive. There is a point at which the cost of information obtained or the time required to conduct the PCA and prepare the PCR may outweigh the usefulness of the information and, in fact, may be a material detriment to the orderly and timely completion of a commercial real estate transaction. It is the intent of this guide to attempt to identify a balance between limiting the costs and time demands inherent in performing a PCA and reducing the uncertainty about unknown physical deficiencies resulting from completing additional inquiry.

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