An Overview of Timberland Purchase Agreements

With over 25,000 square miles, nearly half of Florida’s land area is made up of timberland. These tree stands supply the wood and fiber materials we consume everyday and contribute over $16 billion to Florida’s economy each year. In addition to the economic benefit that Florida timberland for sale has to offer, these tree stands also support outdoor recreational activities and foster essential environmental services such as wildlife habitat, biodiversity, and clean water sources.

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Many land investors have come to recognize the numerous benefits of purchasing timberland for sale in Florida, but before you decide to make the leap, make sure that your timberland purchase agreement includes the following requirements.

Timberland Purchase Agreement Requirements

A formal, legally-binding, written agreement between a seller and purchaser of a property must be drafted and signed by all parties before the buyer can take possession of a property. This contract will serve as a foundation for any disputes that may arise. While it is not a requirement for the contract to be lengthy, it must clearly define all responsibilities and expectations of the applicable parties. An effective contract for the purchase of Florida timberland for sale will include the following provisions.

Identification of parties. The identification of every party that is involved in the purchase of the property should be included in the contract. This may include the names, addresses, phone numbers, and e-mails.

Method of payment. The purchase price, initial cash down payment, length of the payment term if financing is being used, and any other terms of sale must be included within the contract.

General property description. At a minimum, the address of the property must be included within the contract. However, it is best if a more detailed description is provided.

Closing costs. The contract should identify who and what closing costs each party is responsible for.

Deed. It is common for a real estate contract to specify the type of deed to be used to convey the real estate, such as a warranty deed or a quitclaim deed.

Date of closing and possession. A typical purchase agreement will specify the date by which the closing must occur. Upon this date, the buyer must provide the agreed amount of consideration, at which point, ownership of the property is conveyed from the seller to the buyer through a signing of the deed.

Acceptance of terms. A timberland purchase agreement must be entered into voluntarily, and must be signed by all applicable parties, to be legally enforceable.

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