hen selling timber, be certain your interests are protected. Professional assistance is well worth the cost. Like most landowners, you probably sell timber infrequently and should not rely on personal judgment. You should confer with both a forester and an attorney experienced in timber sales.

Timber is generally sold either on a lump-sum basis or under a pay-as-cut agreement. Tax considerations, timber quality and quantity, and other factors should influence your decision on how the timber is sold. In a lump sum sale, the landowner receives a set price (lump sum) for the stand of timber. Under a pay-as-cut agreement, the landowner is paid as the timber is cut and for only that timber that is harvested.

If you make infrequent sales and have good quality timber, it is often in your best interest to sell by advertising the sale to potential buyers, receiving sealed bids and selling on a lump-sum basis.

You should then execute a timber sale contract. While no two contracts are exactly alike, all should include the following basic provisions:

• Guarantee of title and description of the land and boundaries
• Specific description of timber being conveyed, method of designating trees to be cut, estimated volumes, species, products and harvest method(s)
• Terms of payment
• Duration and starting date of the agreement
• Clauses to cover damage to non-designated trees, fences, ditches, streams, roads, bridges, fields and buildings
• Clauses to cover fire damage where harvesting crew is negligent and to protect the seller from liability that may arise in the course of harvesting
• Clauses for compliance with applicable state regulations and defined best management practices
• Clauses for arbitration in case of disagreement.

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