Legal Question in Wills and Trusts in California

Grantor accorded Alex 10 years to reside at the property Free and clear.

An agreement was drafted recently that states that six months before the ten year anniversary of the Date of Grantor�s Death, Alex shall give Steve notice of his intention to purchase the Property or to have the Property sold. Should Alex elect to purchase the Property, an appraiser shall be selected by Alex and Steve to determine the fair market value of the Property as of a date closest to the proposed date of sale as reasonably possible. If either party disagrees with the appraiser�s value, that party may select another appraiser to provide an opinion of the fair market value of the Property. If there is still a disagreement, the other party may select another appraiser to provide an opinion of the fair market value of the Property. If there is still a disagreement, the three appraisers shall jointly value the home. In reaching their decision of value, each appraiser, whether acting individually or together, shall value the Property as though Alex had maintained the Property in a reasonable and good faith manner that shall assume fresh paint, landscaping maintained and no defects in the house and Property. The party selecting an appraiser shall pay that appraiser and the Trust shall pay the appraiser initially selected by you and Steve. The 10% discount on the value of the Property provided by the Trust provision set out above shall be applied to the value of the Property to determine Alex�s ultimate purchase price.

My question is: Where it states �In reaching their decision of value, each appraiser, whether acting individually or together, shall value the Property as though Alex had maintained the Property in a reasonable and good faith manner that shall assume fresh paint, landscaping maintained and no defects in the house and Property.�

My main question is: Does this statement mean that Alex assumes full responsibly for any defects and is required to repair any defects in the house and property, even if the defects were prior to Grantor�s death?


Asked on 11/15/12, 12:02 am

1 Answer from Attorneys
Victor Waid Law Office of Victor Waid

Alex is best advised before taking possession, of obtaining a whole house inspection to determine the needed repairs and have that inspection report agreed upon by all the other beneficiaries; and then obtain an agrement from the other beneficiaries as to whether the trust will be responsible for payment of any repairs to bring the property up to date; if not, then figure the value of the repairs and deduct from the final appraisal value for purposes of establishing a base value. Upon entry, then Alex will be responsible for all ongoing maintenance to maintain the value for the 10yr period.

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Answered on 11/15/12, 2:00 pm


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