Physical deterioration and technical condition of real estate: comprehensive analysis, regulatory framework and inspection methodology

Abstract

Problem. In forensic expertise practice, a frequent problem arises from the incorrect application of the concepts of «physical deterioration» and «technical condition.» The former concept reflects the loss of an asset’s value over time, while the latter determines its structural strength, reliability, and operational safety. Using these terms as synonyms constitutes a severe methodological error. This leads to incorrect conclusions during construction-technical (specialty 10.6) and valuation-construction (specialty 10.10) expert evaluations. This issue is particularly critical today, as the massive destruction of buildings during military hostilities requires experts to determine the extent of property damage with maximum precision. Objective. The objective of this article is to scientifically substantiate the necessity of clearly differentiating between the physical deterioration and the technical condition of buildings and structures. The work aims to create a unified expert algorithm that will enable the accurate assessment of property damage resulting from various types of destruction (operational, technogenic, and military). An important task is to integrate the engineering requirements of the new DSTU 9273:2024 standard with the value-based calculations of property depreciation. Methods. The research is based on the analysis of current regulatory documents, specifically DSTU 9273:2024 and SOUZhKG 75.11-35077234.0015:2009. The author employs the method of analyzing real-life expert case studies (inspections of historical buildings, industrial workshops, and flooded structures). The primary focus is placedon the methods of non-destructive instrumental inspection: sclerometry, ultrasonic flaw detection, thermography, and geodetic monitoring. It is demonstrated that precisely these measurements allow for an objective confirmation of a facility’s emergency or unsuitable condition, completely eliminating the subjectivity of an expert’s visual inspection. Scientific novelty. This article is the first to examine in detail how to apply the four categories of limit states (according to DSTU 9273:2024) in conjunction with calculating the loss of property value. The concept of «sudden physical deterioration,» which occurs due to armed aggression (shock waves, fires), is substantiated. It is proven that such impacts cause a sharp loss of value that cannot be calculated using standard material aging formulas. Using practical examples, the article explores a paradox: a building can have minor overall physical deterioration (thus remaining economically valuable), yet suddenly become an emergency structure due to the damage of a single critical element (e.g., the destruction of a load-bearing wall or metal fatigue failure). Furthermore, the approach to calculating curable and incurable deterioration is refined, where the main criterion is the economic feasibility of repairs compared to the asset’s original value. Conclusions. It is demonstrated that physical deterioration (an economic indicator) and technical condition (an engineering indicator) require distinct approaches, as stipulated by expert specialties 10.10 and 10.6. Their proper differentiation has significant legal implications. For instance, establishing an emergency condition prohibits the building’s operation and imposes liability on its owner. It is established that today, an expert’s conclusion cannot rely solely on visual inspection. Only a combination of economic and engineering approaches, supported by instrumental measurements according to DSTU 9273:2024, allows for the creation of a reliable evidentiary base for the courts. This guarantees the correct calculation of compensation amounts for property damage and assists the state in effectively planning infrastructure reconstruction.