Humber/Ontario Real Estate Course 4 Exam Practice

Which is an example of curable functional obsolescence in a residential property?

1. Outdated plumbing systems.

2. Structural issues due to foundation problems.

3. An unattractive, deep-set location with limited access.

4. A defective roof that can be repaired or replaced.

The correct answer is: A defective roof that can be repaired or replaced.

Functional obsolescence refers to a reduction in a property's value due to outdated features or functionality that can be improved or rectified. In the context of residential properties, curable functional obsolescence specifically pertains to issues that can be corrected without incurring excessive costs and ultimately enhances the property's value. A defective roof that can be repaired or replaced is a clear example of curable functional obsolescence because it is an issue that, while detrimental to the property's condition and aesthetic appeal, can be fixed. By addressing the roof's defects, the property can regain its value and improve its overall marketability. In contrast, outdated plumbing systems, structural issues due to foundation problems, and an unattractive or deep-set location with limited access represent challenges that may incur significant costs to resolve, or in the case of location, may not be something that can be remedied at all. While these issues can affect a property’s desirability and value, they do not fall under the category of curable functional obsolescence as clearly as a repairable roof does.