If the person that you sold your timber to resells it to another buyer, you potentially lost tens of thousands dollars. There are a group of buyers that only resell the timber they buy; they never intend to harvest it themselves–think about it: if your timber is sold for a second time, sometimes on the same day you sold it, you lost a bunch of money. There are ways to tell if the person you are dealing with intends to harvest or resell.
The following list will give you some pointers to address as you negotiate your timber sale.
- Have them include language in the timber deed preventing assignment of the timber deed to another company. Or, have language where you have to give your permission for the timber deed to be assigned (sold) to another company.
- Ask for proof of General Liability and Workers Comp insurance. Many of these “brokers” do not carry the insurance needed to harvest and sell those trees. If they cannot provide proof of insurance, chances are they are going to resell your trees for a huge profit.
- Don’t be in a big rush to sign a deed. Most of these guys will bring a notary public with them so that this transaction can be conducted in the privacy of your home. Closing the timber sale in an attorneys office would be more appropriate.