From the Cooperative Extension Service
Department of Forestry
University of Illinois at Urbana-Champaign 61801

TIMBER SALE CONTRACT - SAMPLE

The following document offers excellent guidelines when preparing a timber sale contract.  Separate articles may be added to suit specific circumstances.  It is advised that the Seller and Purchaser employ legal counsel to review the contract prior to its endorsement.

Contract entered into this ______ day of _____, 20___., by and between __________ of _________ Illinois, hereinafter called the Seller, and _____________, of ____________(city), ___________(state), Illinois Timber Buyer License Number _______, hereinafter called the Purchaser, WITNESSETH:

1. The Seller agrees to sell and the Purchaser agrees to buy for the total sum of ________dollars ($_______) under the conditions set forth in this contract all of the live standing timber marked or designated for cutting and all of the dead or down timber marked or designated upon an area of approximately _____ acres, situated in the _________ of Section ________, Twp._______ R._______, ____________ County, Illinois, on land owned and recorded in the name of _______________________.

The Purchaser further agrees to pay to the Seller as an initial payment under this contract the sum of _________________ dollars ($_________), receipt of which is hereby acknowledged, and a final payment in the sum of ________________ dollars ($_______), prior to any cutting or removal of timber under this contract.

2. The Seller further agrees to mark and dispose of the timber conveyed in this contract in strict accordance with the following conditions:
(a) All trees to be included in this sale will be marked with a distinctive mark on the bole and stump of each tree.
(b) No trees under _____ inches in diameter at a point 4 1/2 feet from the ground will be marked for cutting.
(c) No concurrent contract involving the area or period covered in this contract has been or will be entered into by the Seller without the written consent of the Purchaser
(d) The Purchaser and his employees shall have access to the area at all reasonable times and seasons for the purpose of carrying out the terms of this contract.
(e) Unless otherwise specified, all material contained in the marked or designated trees is included in this sale
(f)
(g)

3. The Purchaser further agrees to cut and remove all of the timber conveyed in this contract in strict accordance with the following conditions:
(a) Unless an extension of time is agreed upon in writing between the Seller and Purchaser, all timber shall be paid for, cut, and removed on or before and none after the _____ day of _______, 20___, and any material not so removed shall revert to the Seller.
(b) Unmarked trees and young timber shall be protected against unnecessary injury from felling and logging operations.  If, however, unmarked trees are cut, damages shall be paid the Seller at the rate of $1 per tree per M bd. ft. for all other species, and in the event that any such trees are cut, said trees shall remain upon the premises and shall be the property of the Seller.
(c) Necessary logging roads shall be cleared by the Purchaser only after their locations have been definitely agreed upon with the Seller or his representative, and any trees to be removed in the clearing operations shall first be marked by the Seller.
(d) During the life of this contract and on the area covered, care shall be exercised by the Purchaser and his employees against the starting and spread of fire, and they shall do all in their power to prevent and control fires.
(e) Any liability for damage, destruction, or restoration of private or public improvements or personal damages occasioned by or in the exercise of this contract shall be the sole responsibility of the Purchaser, and the Purchaser shall save harmless the Seller on account of such damages.
(f) The risk if loss or damage to the trees herein purchased, from any and all causes whatever, shall be borne by purchasers from the date hereof.
(g) The Purchaser will not assign this agreement without the written consent of the Seller.
(h)
(g)
(i)

4. The Seller and Purchaser mutually agree as follows:
(a) All modifications of the contract will be reduced to writing, dated, signed, and witnessed and attached to this contract.
(b) Any need for reassignment of interest of either party may be changed within 10 days following written consent by both parties.  All terms of this contract legally bind the named representatives to excuse this document as written.
(c) The total number of trees conveyed is _____ (having a volume of approximately _____bd. ft.) composed as follows:
_______ white oak, _______ red and black oak, __________________, ____________________, ______________________, __________________.
(d) In case of dispute over the terms of this contract, final decision shall rest with a reputable person to be mutually agreed upon the by parties to this contract.  If the parties hereto do not agree upon a third party within 10 days following the initiation of the dispute, or in the case of further disagreement, then within 15 days from the initiation of the dispute, it shall be submitted to a Board of Arbitration of three persons, one to be selected by each party to this contract and the third to be selected by the other two.  The Board shall decide the dispute within 5 days after the matter is referred to it.

In the event that damages are awarded to the Seller by the Board of Arbitration and are not paid on the date that the award is made, then all operations of the Purchaser shall immediately cease, and if the award is not paid or satisfied within 30 days after the date of award, the Seller may take immediate possession of the premises upon which the timber is located, shall retain as liquidated damages all money paid by the Purchaser, and the title to all timber shall revert to and become the property of the seller.

In witness whereof, the parties hereto have set their hands and seals this __________ day of ______________________ 20____.

WITNESSES:

______________________________      ______________________________
for the Purchaser                             Purchaser

______________________________      ______________________________
for the Seller                                   Seller

M.F. Bolin
7/23/76

1/Krausz, N.G.P., and H.W. Hannah, Law and Court Decisions on Agriculture, Champaign: Stipes Publishing Company, 1973, pages 14-18.