Real Estate and Commercial Building Inspections
In August of 1999, the American Society for Testing and Materials (ASTM) published a Standard E2018-99, which defined "good commercial and customary practice for conducting a baseline Property Condition Assessment (PCA)." This standard was specifically written for commercial real estate and largely intended for commercial real estate transactions. The Standard was updated in July of 2008 and renamed E2018-08.
The ASTM E 2018 guideline defines good commercial and customary practices 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's material systems, components, or equipment as observed during the field observer's 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.
Perform a walkthrough survey of the property. Prepare costs for remedies recommended. Document findings and costs in a written report. Few properties are in perfect condition. Like used cars, older properties require maintenance and repair over time. An inspection can clue you in to areas of concern, improve your negotiating position and provide you with an assessment of the current condition of the property for future reference.
Objectives in the development of the ASTM E 2018 Standards are: (1) define good commercial and customary practice for the PCA of primary commercial real estate improvements; (2) facilitate consistent and pertinent content in PCRs; (3) develop practical and reasonable recommendations and expectations for site observations, document reviews and research associated with conducting PCAs and preparing PCRs; (4) establish reasonable expectations for