How is the propertys “mutually agreed value” determined at the inception of the Square1 Trust™, since there is no sale price per se?
The “MAV” is set purely for the purpose of determining the settlor beneficiary’s initial contribution at start (e.g., his or her “equity,” along with any non-recurring closing costs paid). The MAV is generally the greater of – 1) the fair-market-value inferred by a professional Comparative Market Analysis, or 2) the value of the property reflected by a mutually acceptable value determination; or 3) the aggregate amount of the existing loan/s against the property (i.e., whichever is greater ).
