Does a third party become an intended user if they receive a transcription of an oral appraisal report?

In the context of appraisal practices, the concept of an intended user is pivotal in determining who can rely on an appraisal report. A third party that receives a transcription of an oral appraisal report does indeed become an intended user if the nature of that transaction indicates such a relationship, regardless of their involvement in the original agreement.

The reasoning is that intended users are individuals or entities that the appraiser identifies to whom the report is specifically directed and intended to use. When a third party receives the report, the original client’s intent may extend to that third party, which can be inferred from the circumstances surrounding the sharing of the appraisal report. Thus, as long as the third party receives the report in a manner that indicates they are meant to utilize it—such as through a transcription—they can be considered an intended user.

This understanding corroborates the importance of how appraisal reports are communicated and distributed—effectively expanding the category of intended users to those who may not have been direct participants in the initial agreement but still clearly fall within the scope of intended use by the appraiser’s actions.