Does a borrower become an intended user upon receiving a copy of the appraisal report from their lender?

A borrower does not automatically become an intended user solely by receiving a copy of the appraisal report from their lender. The concept of "intended users" in the context of an appraisal is defined within the Uniform Standards of Professional Appraisal Practice (USPAP). Intended users are those individuals or entities identified by the appraiser as having a specific need for the information contained in the appraisal report.

In many cases, the lender is the intended user of the appraisal, as they request it to make informed lending decisions. While the borrower receives a copy, this does not inherently grant them the status of an intended user unless the appraiser explicitly lists them as such within the appraisal report. Therefore, just receiving a copy does not automatically confer this status.

If there were to be specific language in the appraisal report indicating the borrower was considered an intended user, that would clarify their status. Thus, the correct understanding is that the borrower’s status as an intended user is conditional and based on the appraiser's determination as outlined in the report itself.

This distinction is crucial for understanding how appraisals function and who is expected to rely on them. The intended user framework is meant to provide clarity on who can appropriately use the appraisal for specific purposes, which is particularly important in