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AFOA makes the following paragraphs available to the public in the hopes that forest owners will work with their consulting foresters and attorneys to develop effective protection from government regulations for both timber buyers and sellers. Do not use the following paragraphs without seeking legal advice.

Contract Terminology Received From Paper Company

4. The Seller expressly covenants and agrees to and with the Buyer that Seller is lawfully seized in fee simple of the timber and/or trees hereinabove described and conveyed; that the same is free from any and all liens, mortgages and encumbrances; that Seller has a good and perfect right to sell and convey the same as aforesaid; and that Seller does and will, and his executors, administrators, heirs and assigns shall, forever WARRANT and DEFEND the title to said timber and/or trees, and the possession thereof, unto Buyer, its successors and assigns, against the lawful claim or claims of any and all persons whomsoever.

Seller, for himself, his executors, administrators, heirs and assigns further warrant that to the best of Seller's knowledge, no permits under the Endangered Species Act, Clean Water Act or any other act, or governmental regulations is required in order for Buyer to harvest all or any part of the timber and/or trees herein conveyed. To the extent any threatened or endangered species are found on the land described herein, or if Buyer is otherwise prevented from harvesting any timber and/or trees herein conveyed as a result of any such act, law or governmental regulation then Buyer shall have the option to: (a) Cancel this contract without liability, and Seller shall reimburse Buyer for the full purchase price less any timber already cut. (b) Cancel this contract only as to the affected acreage and timber and/or trees thereon, in which case Seller shall reimburse the Buyer for the prorated portion of the purchase price related to the volume of timber that Buyer is unable to harvest as a result of any such governmental act, law or regulation as set out above. Said volume of timber shall be determined by a joint cruise performed by Buyer and Seller.

Contract Terminology Received From Wood Dealer

An equitable adjustment to the purchase price shall be made and refunded by seller to buyer in the event that endangered or threatened species (as defined by the Endangered Species Act and the rules and regulations promulgated pursuant thereto) are discovered upon the land which adversely affect and prohibit the harvesting of part or all of the timber purchased herein, and to the extent such species may not be disclosed by seller to buyer prior to execution of this timber deed. The portion or amount of land and timber affected by the presence of the endangered or threatened species shall be determined by applying the guidelines then in effect and adopted by buyer and as applied by buyer to the timber management and harvesting practices upon its own land and as required by federal, state, or local law or regulation. In the event buyer and seller cannot agree upon an equitable adjustment, such adjustment shall be determined by binding arbitration conducted according to the rules of the American Arbitration Association.


Contact Information:
Alabama Forest Owners' Association, Inc.
P. O. Box 361434
Birmingham, Alabama 35236
Phone: (205) 987-8811
Fax: (205) 987-9824
Email: Click Here