After delivery, the client asks the appraiser to add a new party as an intended user. The appraiser should:
Correct Answer
C) Treat it as a new assignment, since intended users are set at the outset
After completion, retroactively labeling a new party as an original intended user misstates the original assignment. Consider a new assignment appropriate to the new user and use; prior data may be useful if applicable. Client-authorized release of an existing report is a different matter from changing its intended users.
Why This Is the Correct Answer
Option C is correct because intended users are identified by the appraiser as part of the assignment, and a party receiving a copy of a report does not become an intended user unless identified that way. Retroactively labeling a new party as an original intended user misstates the original assignment. The appropriate path is a new assignment for the new user and use, where prior data may be useful if applicable.
Why the Other Options Are Wrong
Option A: Simply forward the delivered report directly to the newly named party
Option A is wrong because simply forwarding the delivered report to the new party does not make that party an intended user; receiving a copy does not confer intended-user status.
Option B: Add the party by letter, since the analysis itself has not changed at all
Option B is wrong because adding the party by letter after delivery retroactively changes the intended users of a completed assignment, even if the analysis has not changed.
Option D: Refuse, because USPAP bars contact with the client after delivery
Option D is wrong because USPAP does not bar contact with the client after delivery; the issue is adding an intended user, which is handled through a new assignment.
Users set at start
Intended users are fixed when the assignment is made; a newcomer after delivery needs a new assignment, not a retroactive label.
How to use: Use this when a client asks to add a lender or other party after a report is delivered.
Exam Tip
Separate releasing a copy of a report from making someone an intended user; they are different acts with different consequences.
Common Mistakes to Avoid
- -Readdressing a delivered report to a new lender
- -Thinking a copy recipient automatically becomes an intended user
- -Believing USPAP forbids any client contact after delivery
Concept Deep Dive
Analysis
This question tests whether intended users can be added after an assignment is complete. Intended users are identified as part of the assignment, so retroactively adding one misstates the original assignment. A new user and use call for a new assignment.
Background Knowledge
Intended users are those the appraiser identifies, through communication with the client at the time of the assignment, as using the report. Releasing a copy to another party, with client authorization, does not make that party an intended user. A new party wanting to rely on the appraisal for its own use generally requires a new assignment.
Real-World Application
After delivering a report to a lender, the appraiser is asked to name a second lender as an intended user. The appraiser explains that this would require a new assignment for the second lender, which may draw on the earlier research where applicable.
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