1. TYPES OF TIMBER RELATED CONTRACTS
12/7/2018
W.L. Hoover

2. Subject of the Contract
Standing timber (stumpage)
Products cut from the timber
Logs
Lumber
Firewood
Other
12/7/2018
W.L. Hoover

3. Type of Disposal Outright sale Leasehold interest Existing timber Land
Timber to be grown
12/7/2018
W.L. Hoover

4. LOGGING SERVICES CONTRACT
Landowner hires logger to cut timber for them
Timber has not been sold
Logger has no title to timber or logs
No “contract right to cut”
Landowner retains ownership of logs and is in control of their sales
12/7/2018
W.L. Hoover

5. CONTRACT RIGHT TO CUT
Landowner grants logger the right to cut and sell timber
Logger has a “contract right to cut and sell logs on their own account”
Landowner is paid based on log sales revenue
Payments constitute royalties
12/7/2018
W.L. Hoover

6. SALE CONTRACTS
Sale - Contract whereby property is transferred from one person to another for a consideration of value, implying the passing of the general and absolute title, as distinguished from a special interest falling short of complete ownership.
12/7/2018
W.L. Hoover

7. TIMBER SALE CONTRACTS Executory sale
Contract under which something specified in contract is to be done by either party before delivery and passing of title.
12/7/2018
W.L. Hoover

8. TIMBER SALE CONTRACTS Not a real estate transaction Called
timber deed, or
lump sum contract
It’s a Uniform Commercial Code (UCC) transaction
Usual timber sale contract is an executory contract for the sale of goods.
12/7/2018
W.L. Hoover

9. Shares Contract, or to sell “on the shares”
Form of contract unknown unless specified,
Frequently not in writing -- a parol contract,
Revenue from sale of cut products split between landowner and logger based on specified percentage,
Critical question is who owns cut products when they are sold?
Granting a contract right to cut to logger is key
How amount of payment is determined, and time of payment not determining
12/7/2018
W.L. Hoover

10. LAND CONTRACT Legal name – title retention contract Other names
Contracts for deed
Installment land contract
Seller retains title until payments are completed
Buyer has no independent right to sell timber
12/7/2018
W.L. Hoover

11. Life Estate
“Life tenant” is owner under terms of a will until their death, then title goes to remainderman named in will,
Life tenant has complete right to sell timber, but “remainderman” may be able to sue for a “wasting”
12/7/2018
W.L. Hoover