Timber Deed Law and Legal Definition

A timber deed is one method of selling timber. Where a timber deed is used, the title to the timber passes to the buyer when a properly executed deed is delivered and recorded. Under a timber deed:

  1. Seller conveys all liability and risk in timber to buyer upon deed execution and payment.
  2. Seller receives a one-time, fixed amount payment in exchange for the deed. The gain or loss in the timber cut-out and decision on use belongs solely to the buyer.
  3. Some deeds are specified to be a certain length of time in duration. Timber uncut after that period reverts back to seller, unless seller voluntarily grants or sales an extension to buyer.
  4. Capital gains tax may not apply for certain sellers who use “Timber Deeds” based on their frequency of past timber sales.