External obsolescence refers to the state of being outdated or less useful as a result of external factors, such as technological advancements or regulatory changes. This can lead to a decline in the item’s value or demand. Unlike physical deterioration, external obsolescence can impact assets such as consumer goods or property.
External obsolescence occurs when external economic factors, such as decreased demand or changed governmental regulations, make a property less valuable or useful. It is different from physical deterioration, which is the result of wear and tear over time. For example, a factory located in a small town may lose business due to changes in regulations that make it more expensive to operate. Similarly, a shopping mall may lose customers due to the opening of a new mall in a nearby area. An illustration of external obsolescence is a small town factory that has been in operation for many years but is forced to shut down due to increased operating costs caused by changes in regulations.
External obsolescence is a decrease in the value of a property due to factors outside of the property itself, such as changes in the surrounding neighborhood or community.
Examples of external obsolescence include noise pollution, traffic congestion, crime rates, and changes in zoning laws.
External obsolescence is typically beyond the control of property owners and is often caused by external factors such as changes in the local economy or community.
Preventing external obsolescence is difficult, but property owners can take steps to mitigate its effects, such as investing in soundproofing or security measures.
Yes, external obsolescence can significantly impact property values, especially in areas with high levels of external factors such as noise pollution or crime.
External obsolescence can be used as a defence in certain property disputes, such as eminent domain cases, where the government seeks to take private property for public use.
External obsolescence can be used to reduce property taxes in some cases, as it can be considered a factor that decreases the value of a property.
External obsolescence is typically not covered by insurance, as it is considered a natural and expected part of the real estate market.
External obsolescence is often beyond the control of property owners and cannot be remedied through legal action, unless it is caused by a specific party or action.
Property owners can protect themselves from external obsolescence by staying informed about changes in the local community and investing in measures to mitigate its effects, such as soundproofing or security measures.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/external-obsolescence/
- Modern Language Association (MLA):External Obsolescence. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/external-obsolescence/.
- Chicago Manual of Style (CMS):External Obsolescence. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/external-obsolescence/ (accessed: May 09 2024).
- American Psychological Association (APA):External Obsolescence. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/external-obsolescence/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts