If a client uses a transcription of an oral report given by an appraiser, does it create an intended user relationship for a third party?

The correct answer emphasizes that an intended user relationship for a third party is not automatically established solely through the transcription of an oral report. It highlights that intended users need to be specifically identified by the appraiser at the time of the assignment.

In the context of appraisals, intended users are those individuals or entities that the appraiser knows will rely on the report. For a third party to qualify as an intended user, the appraiser must clearly convey this designation within the assignment parameters. This ensures that the appraiser can manage liability and expectations appropriately.

If the appraiser does not identify specific third parties as intended users during the assignment, those third parties do not have the same legal rights or protections regarding the reliance on the appraisal as intended users do. This distinction is essential to maintain clear lines of responsibility and to limit potential liability for the appraiser.

The other choices either imply automatic inclusion of all recipients as intended users or suggest a condition not aligned with USPAP criteria for intended users, creating confusion about the necessity of clarity and the appraiser's responsibilities.