Uniform Standards of Professional Appraisal Practice (USPAP) Practice Exam

Can there be intended users other than the client for a Restricted Use Appraisal Report?

1. Yes, there can be

2. No, there cannot be

3. Only if specified by the appraiser

4. Only in government-funded projects

The correct answer is: Yes, there can be

In the context of a Restricted Use Appraisal Report, the intention behind the report is that it is specifically designed for a sole intended user, typically the client who ordered the appraisal. However, the possibility exists for there to be other intended users as well. This is contingent upon how the report is structured and written. If the appraiser explicitly states in the report or in the engagement letter that additional intended users are recognized, those individuals or entities can also be considered intended users. This flexibility highlights the appraiser's responsibility to clearly communicate who can rely on the report and under what conditions. The inclusion of additional intended users must be done thoughtfully, ensuring that the appraiser maintains the confidentiality and integrity of the information contained within the report. Therefore, while the primary intended user is the client, it is entirely feasible for other parties to be designated as intended users provided that it is made clear in the report documentation. This understanding is pivotal in ensuring that the appraisal meets the needs of all stakeholders while adhering to the standards set by USPAP and maintaining ethical practices within the appraisal profession.