Free Pennsylvania Real Estate Practice Exam Practice Question
The three types of depreciation INCLUDE physical deterioration, functional obsolescence, and:
Correct Answer: D
Rationale: Depreciation encompasses various factors that reduce an asset's value over time. Physical deterioration refers to wear and tear, while functional obsolescence arises from outdated features. External obsolescence, the third type, occurs due to external factors like economic decline or neighborhood changes that negatively impact property value.
Option A, non-conforming value, relates to zoning and compliance issues, not depreciation types. Option B, regression, refers to a decrease in value due to surrounding properties, but is not a type of depreciation. Option C, progressive deterioration, is not a standard term in depreciation discussions.
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