Functional Obsolescence

Definition of Functional Obsolescence

The need for replacement because a structure or equipment has become inefficient or out-moded because of improvements developed since its original construction or production. The loss of value due to inherent deficiencies within the property. Fisher-New Center Co. v. Michigan State Tax Commission, 380 Mich. 340, 157 N.W.2d 271, 279.

With respect to valuation of property for taxation, is loss of value brought about by the failure or inability to deliver full service, and includes any loss of value by reason of shortcomings or undesirable features contained within the property itself and is a loss of utility and failure to function due to inadequacies of design and deficiencies in the property. Piazza v. Town Assessor of Town of Porter, 16 A.D.2d 863, 228 N.Y.S.2d 397, 398.

That's the definition of Functional Obsolescence in Black's Law Dictionary 6th Edition. Courtesy of Cekhukum.com.