ASTM E2018-24
(Guide)Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process
Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process
SIGNIFICANCE AND USE
4.1 Use—This guide is intended to reflect a reasonable baseline process for the completion of PCAs for use on a voluntary basis. No implication is intended that use of this guide be required to have conducted a PCA in a commercially prudent and reasonable manner. The baseline process described in this guide is subject to a moderate level of uncertainty. Because the objectives, risk tolerance, schedule, and budget of users can be dramatically different there are varying levels of PCA and due diligence that can be exercised that are both more and less comprehensive than this guide that may be appropriate to meet the objectives of the user. In accordance with ASTM protocols, this guide does not recommend a specific course of action or scope of work. Users should consider their requirements, the purpose that the PCA is to serve, and their risk tolerance to refine the scope of assessment and consultant qualifications in order to establish appropriate objectives for the assessment.
4.2 Clarification of Use of Assessments:
4.2.1 Specific Point in Time—A user should only rely on the PCR for the point in time that the observations and research were conducted.
4.2.2 Site-Specific—The PCA prepared in accordance with this guide is site-specific in that it relates to the physical condition of primary improvements on a specific parcel of commercial real estate. Consequently, this guide does not address many additional issues in commercial real estate transactions such as economic obsolescence, the purchase of business entities, or physical deficiencies relating to off-site conditions.
4.2.3 Specific Objectives—PCAs are completed to address specific objectives identified to the consultant by the user. The consultant should be consulted prior to use of the PCA to address any other objective.
4.2.4 Intended Users—PCAs are typically completed for use by contracting parties. In some cases, the use of or reliance on reports may be extended to additional parties by mutua...
SCOPE
1.1 Purpose—The purpose of this guide is to provide a framework for conducting a property condition assessment (PCA) of the primary improvements at commercial real estate properties by performing a walk-through survey and conducting research as outlined within this guide.
1.1.1 Physical Deficiencies—The goal of the baseline process for property condition assessments is to identify and communicate material physical deficiencies to a user.
1.1.2 Walk-Through Survey—This guide outlines procedures for conducting a walk-through survey to identify physical deficiencies, and recommends various building systems and building components that should be observed by the field observer.
1.1.3 Document Reviews and Interviews—The scope of this guide includes document reviews, research, and interviews to augment the walk-through survey to assist with understanding the subject property and identification of physical deficiencies.
1.1.4 Property Condition Report—The work product resulting from completing a PCA in accordance with this guide is a property condition report (PCR). The PCR incorporates the information obtained during the Walk-Through Survey, the Document Review and Interviews sections of this guide and includes opinions of costs for suggested remedies of observed physical deficiencies.
1.2 Objectives—Objectives in the development of this guide are to: (1) provide a framework for conducting a property condition assessment (PCA) of the primary improvements located on a parcel of commercial real estate; (2) facilitate consistent and pertinent content in PCRs; (3) develop pragmatic and reasonable recommendations and expectations for site observations, document reviews and research associated with conducting PCAs and preparing PCRs; (4) establish reasonable expectations for PCRs; (5) assist in developing an industry standard of care for appropriate baseline observations and research; and (6) recommend protocols for th...
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This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the
Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.
Designation: E2018 − 24
Standard Guide for
Property Condition Assessments: Baseline Property
1
Condition Assessment Process
This standard is issued under the fixed designation E2018; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
1. Scope* and research; and (6) recommend protocols for the consultants
for communicating observations, opinions, and recommenda-
1.1 Purpose—The purpose of this guide is to provide a
tions in a manner meaningful to the user.
framework for conducting a property condition assessment
(PCA) of the primary improvements at commercial real estate 1.3 Out of Scope Considerations and Excluded Activities—
The use of this guide is strictly limited to the scope set forth
properties by performing a walk-through survey and conduct-
herein. Section 12 and Appendix X1 of this guide identify, for
ing research as outlined within this guide.
informational purposes, certain considerations and physical
1.1.1 Physical Deficiencies—The goal of the baseline pro-
conditions that may exist on the subject property, and certain
cess for property condition assessments is to identify and
activities or procedures (not an all-inclusive list) that are
communicate material physical deficiencies to a user.
beyond the scope of this guide but may warrant consideration
1.1.2 Walk-Through Survey—This guide outlines procedures
by parties to a commercial real estate transaction to enhance
for conducting a walk-through survey to identify physical
the PCA. Users should work with a knowledgeable consultant
deficiencies, and recommends various building systems and
to identify additional considerations and concerns to be evalu-
building components that should be observed by the field
ated. The decision to inquire into out-of-scope considerations
observer.
or extend the assessment to include excluded activities is to be
1.1.3 Document Reviews and Interviews—The scope of this
made by the user. No assessment of out-of-scope consider-
guide includes document reviews, research, and interviews to
ations is required for a PCA to be conducted in conformance
augment the walk-through survey to assist with understanding
with this guide.
the subject property and identification of physical deficiencies.
1.1.4 Property Condition Report—The work product result-
1.4 Organization of This guide—This guide consists of
ing from completing a PCA in accordance with this guide is a
several sections, an Annex and two (2) Appendixes. Section 1
property condition report (PCR). The PCR incorporates the
is the Scope. Section 3 on Terminology contains definitions of
information obtained during the Walk-Through Survey, the
terms both unique to this guide and not unique to this guide,
Document Review and Interviews sections of this guide and
and acronyms. Section 4 sets out the Significance and Use of
includes opinions of costs for suggested remedies of observed
this guide, and Section 5 describes the User’s Responsibilities.
physical deficiencies.
Sections 6 through 11 provide guidelines for the main body of
the PCR, including the scope of the walk-through survey,
1.2 Objectives—Objectives in the development of this guide
preparation of the opinions of costs to address physical
are to: (1) provide a framework for conducting a property
deficiencies, and preparation of the PCR. Section 12 provides
condition assessment (PCA) of the primary improvements
additional information regarding out-of-scope considerations,
located on a parcel of commercial real estate; (2) facilitate
activities, and procedures (see section 1.3). Annex A1 provides
consistent and pertinent content in PCRs; (3) develop prag-
guidance relating to specific asset types that are considered as
matic and reasonable recommendations and expectations for
integral to this guide. Appendix X1 describes additional
site observations, document reviews and research associated
concerns a user may consider in modification of the scope of
with conducting PCAs and preparing PCRs; (4) establish
the PCR. Appendix X2 and Appendix X3 outline an approach
reasonable expectations for PCRs; (5) assist in developing an
to limited accessibility screenings.
industry standard of care for appropriate baseline observations
TABLE OF CONTENTS
1 Scope
1
This guide is under the jurisdiction of ASTM Committee E50 on Environmental 1.1 Purpose
1.2 Objectives
Assessment, Risk Management and Corrective Action and is the direct responsibil-
1.3 Out of Scope Considerations and Ex
...
This document is not an ASTM standard and is intended only to provide the user of an ASTM standard an indication of what changes have been made to the previous version. Because
it may not be technically possible to adequately depict all changes accurately, ASTM recommends that users consult prior editions as appropriate. In all cases only the current version
of the standard as published by ASTM is to be considered the official document.
Designation: E2018 − 23 E2018 − 24
Standard Guide for
Property Condition Assessments: Baseline Property
1
Condition Assessment Process
This standard is issued under the fixed designation E2018; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
1. Scope*
1.1 Purpose—The purpose of this guide is to provide a framework for conducting a property condition assessment (PCA) of the
primary improvements at commercial real estate properties by performing a walk-through survey and conducting research as
outlined within this guide.
1.1.1 Physical Deficiencies—The goal of the baseline process for property condition assessments is to identify and communicate
material physical deficiencies to a user.
1.1.2 Walk-Through Survey—This guide outlines procedures for conducting a walk-through survey to identify physical
deficiencies, and recommends various building systems and building components that should be observed by the field observer.
1.1.3 Document Reviews and Interviews—The scope of this guide includes document reviews, research, and interviews to augment
the walk-through survey to assist with understanding the subject property and identification of physical deficiencies.
1.1.4 Property Condition Report—The work product resulting from completing a PCA in accordance with this guide is a property
condition report (PCR). The PCR incorporates the information obtained during the Walk-Through Survey, the Document Review
and Interviews sections of this guide and includes opinions of costs for suggested remedies of observed physical deficiencies.
1.2 Objectives—Objectives in the development of this guide are to: (1) provide a framework for conducting a property condition
assessment (PCA) of the primary improvements located on a parcel of commercial real estate; (2) facilitate consistent and pertinent
content in PCRs; (3) develop pragmatic and reasonable recommendations and expectations for site observations, document reviews
and research associated with conducting PCAs and preparing PCRs; (4) establish reasonable expectations for PCRs; (5) assist in
developing an industry standard of care for appropriate baseline observations and research; and (6) recommend protocols for the
consultants for communicating observations, opinions, and recommendations in a manner meaningful to the user.
1.3 Out of Scope Considerations and Excluded Activities—The use of this guide is strictly limited to the scope set forth herein.
Section 1112 and Appendix X1 of this guide identify, for informational purposes, certain considerations and physical conditions
that may exist on the subject property, and certain activities or procedures (not an all-inclusive list) that are beyond the scope of
this guide but may warrant consideration by parties to a commercial real estate transaction to enhance the PCA. Users should work
with a knowledgeable consultant to identify additional considerations and concerns to be evaluated. The decision to inquire into
out-of-scope considerations or extend the assessment to include excluded activities is to be made by the user. No assessment of
out-of-scope considerations is required for a PCA to be conducted in conformance with this guide.
1
This guide is under the jurisdiction of ASTM Committee E50 on Environmental Assessment, Risk Management and Corrective Action and is the direct responsibility
of Subcommittee E50.02 on Real Estate Assessment and Management.
Current edition approved June 1, 2023Jan. 1, 2024. Published January 2024. Originally approved in 1999. Last previous edition approved in 20152023 as E2018– 15. DOI:
10.1520/E2018-23.– 23. DOI: 10.1520/E2018-24.
*A Summary of Changes section appears at the end of this standard
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United States
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E2018 − 24
1.4 Organization of This guide—This guide consists of several sections, an Annex and two (2) Appendixes. Section 1 is the Scope.
Section 23 on Terminology contains definitions of terms both unique to this guide and not unique to this guide, and acronyms.
Section 34 sets out the Significance and Use of this guide, and Section 45 describes the User’s Responsibilities. Sections 56
through 1011 provide guidelines for the main body of the PCR,
...
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