What happens if a borrower receives an appraisal report from a lender?

When a borrower receives an appraisal report from a lender, the borrower is not automatically considered an intended user of that appraisal. In the context of USPAP (Uniform Standards of Professional Appraisal Practice), intended users are those individuals who the appraiser intends to rely upon the appraisal report. While the lender commissions the appraisal and may be the primary party benefiting from it in a lending decision, the borrower, as a third party, typically does not have the same level of intent or rights regarding the use of the appraisal.

This concept reinforces the understanding that the appraisal is primarily for the lender's use in determining the value of the property in relation to the loan. The borrower may receive a copy for informational purposes, but this does not confer any status as an intended user in terms of the appraiser’s responsibilities or legal obligations.

In this scenario, the other options do not hold true. The lender is not legally bound to the appraisal outcome in a way that would make the appraisal itself a guarantee of value, nor is there a requirement for the appraisal to be re-evaluated just because a borrower has received it. Thus, the designation of the borrower as not being an intended user reflects the specific nature of the appraiser's engagement and intended use of the report