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children (collectively the Bigelows) entered into an exchange and
leaseback agreement (the exchange agreement) with Peter and
Margaret Seaman (the Seamans). The Seamans owned a residence on
Padaro Lane in Carpinteria (the Padaro Lane property).
Under the exchange agreement, the Bigelows agreed to
transfer to the Seamans the Sand Point Road property which was
worth $1,325,000, and the Seamans agreed to pay the Bigelows
$125,000 and to transfer to decedent’s trust the Padaro Lane
property which was worth $1,200,000. The Seamans wanted to build
a new house on the Sand Point Road property. As part of the
agreement, the Bigelows agreed to lease the Padaro Lane property
to the Seamans until the new house was completed.
Decedent’s trust obtained a $350,000 loan from the Great
Western Bank evidenced by a promissory note and secured by a
first position deed of trust on the Padaro Lane property in favor
of the bank. Decedent and Mr. Bigelow personally guaranteed the
performance of decedent’s trust under the purchase money
promissory note. Decedent’s trust used the proceeds from the
Great Western Bank loan to repay two Citibank loans secured by
the Sand Point Road property.
Decedent signed the exchange agreement and the deed
transferring the Sand Point Road property to the Seamans. Mr.
Bigelow signed the other documents, including the loan
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Last modified: May 25, 2011