An appraisal is developed for a lender but the borrower is named as an intended user. What follows?
Correct Answer
A) The report must be written to serve both users
Why this is correct: USPAP requires the appraisal report to be appropriate for all intended users. Naming the borrower as an intended user means the report's content and communication level must serve both the lender and borrower. Why the other choices are wrong: "The borrower gains the right to direct the work" is false; only the client (here, the lender) has that authority. "The report must be a Restricted Appraisal Report" is incorrect; report type depends on intended use, not the number of users. "The lender ceases to be the client of record" is wrong; the client relationship remains unchanged. Exam tip: Intended users influence report content; the client controls the assignment.
Why This Is the Correct Answer
Why this is correct: USPAP requires the appraisal report to be appropriate for all intended users. Naming the borrower as an intended user means the report's content and communication level must serve both the lender and borrower. Why the other choices are wrong: "The borrower gains the right to direct the work" is false; only the client (here, the lender) has that authority. "The report must be a Restricted Appraisal Report" is incorrect; report type depends on intended use, not the number of users. "The lender ceases to be the client of record" is wrong; the client relationship remains unchanged. Exam tip: Intended users influence report content; the client controls the assignment.
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