Legal Question in Real Estate Law in California

Re: Life Estates

First, the value of the property and the somewhat unusual nature of the proposed deal strongly suggests that you should be represented by an attorney.

The right to remain on a parcel for life is called a life estate. However, since your rights will be limited to a portion of a parcel which cannot be split off, I would conclude that you cannot create a conventional life estate in the two acres + house.

This does not mean the parties' intent cannot be accomplished, however. One possibility is to retain a life estate in the entire 10 acres, giving the grape grower the remainder interest plus either a lease or an easement for growing grapes on 8 acres. There are many other possibilities; weighing them and choosing depends upon the credit worthiness of the parties, their tax positions, and many other factors.

This is an interesting proposed deal, and similar to one I'm considering for my personal use. If you are located in the North Bay wine country, I would be delighted to work with you.