Posted by Mary on January 15, 2002 at 17:22:27:
Why don’t you sell the timber yourselves? I think I wouldnt be so quick to let a tenant buyer benefit from your timber. Last time I sold timber I made over 20K. I would research how valuable the trees are. You might want to excercise your option to buy if there is alot of profit in the trees. You can always do a LO after. Mary
Timber rights - Posted by Keith LaTorre
Posted by Keith LaTorre on January 15, 2002 at 15:54:36:
We’re lease/optioning a property with a house (on a flat 2 acres) and 12 acres of blue ridge mountain timber. A potential tenant/buyer (local builder) asked us about timber rights. We would love for him to lease/opt the property, and we would love for him to earn $ from the trees (especially to earn towards a down payment). We thought we could write the contract so that any tree profit he earns is put in escrow and only upon sale can he access that $. How can we make sure that we don’t screw this up? Do we need a separate agreement about timber rights? Do we need (ugh!) a lawyer?
Re: Timber rights THINK ABOUT IT - Posted by Mark (WV)
Posted by Mark (WV) on January 15, 2002 at 19:02:15:
I think a lawyer would be a very good idea at this time. Keep in mind that you are leasing and are not the owner of record in this case.
I don’t know where you are located by reading your post but (We’re lease/optioning a property with a house (on a flat 2 acres) and 12 acres of blue ridge mountain timber)implies that you are in NC or Va.
Here in WV the timber rights are owned by the owner and even selling to another the rights are maintained by the deed owner or if on deed of trust ,permission must be granted to cut the timber and proceeds would go to lein holder.
I got into a deal a few years back like this and the money from the sale had to be given to the bank to repay the loan that my seller had on the land.
I don’t know or profess to know the laws where you are in this matter , but imho you can’t sell what you don’t own, a lease/op while protecting you in case you can’t sell it yourself , maintains the deed in the sellers name