Have you ever looked at the trees on your land and wondered what they’re worth?
Many landowners in North Carolina treat their woods like a pretty backdrop. They see the leaves and the shade, but they don’t see the dollar signs.
You might be sitting on a gold mine without even knowing it. That’s because selling vacant land isn’t about the dirt; it’s also about everything attached to that dirt.
If you have tall pines or old hardwoods, those trees are an asset. They can add thousands of dollars to your final sale price.
But there’s a catch that many people miss. You have to know who actually owns those trees.
Timber rights laws can get a bit sticky. And not understanding timber rights in North Carolina can mean you lose money or end up in a legal mess.
In this guide, we’ll talk about how timber rights work and examine a famous court case that changed the rules for many families. We’ll also show you how to protect yourself with the right contract.
You’ll feel like an expert by the time we’re done.
What Landowners Need to Know About Timber Rights
Timber rights are special legal rules that let someone cut and sell the trees on a property.
You might think that owning the land means you own the trees. While that’s usually true, there can be special circumstances in North Carolina. Like:
- Someone could sell the land but keep the rights to the trees.
- Or they could sell the timber rights to a logging company while keeping the land.
This is why it’s so important to check your deed before selling. You don’t want any surprises when you’re at the closing table.
To help you understand this better, we need to explain a few special terms. Knowing them will help you talk to buyers and loggers like a pro.
Here are three key terms you should know:
- Stumpage Value: This is the price of the trees while they’re still standing in the ground. It’s what a buyer pays you before any work starts. It’s different from the price of the wood after it gets to the mill.
- Timber Trespass: This happens when someone cuts down trees that aren’t theirs. It can happen by mistake if property lines aren’t well-marked. In North Carolina, this can lead to fines or lawsuits.
- Life Estate: This is a way of owning land for only as long as you’re alive. After you pass away, the land goes to someone else and creates a lot of questions about who gets to cut the trees.
- Timber Cruise: This is when a forester walks through your woods to count and measure the trees. They figure out how much timber you have and what it’s worth. A good cruise helps you know what your trees should sell for before you talk to any buyers.
The Jackson v. Don Johnson Forestry Lesson
There’s a very important court case you should know, called Jackson v. Don Johnson Forestry.
This case happened in North Carolina and involved a family in Bertie County who had a disagreement over their trees.
The case’s background
The story started with a man’s will. He left his land to his children for their whole lives under an agreement called a life tenancy.
After they passed away, the land was supposed to go to his grandchildren.
But the man’s will included a special clause regarding the timber. It said the children could cut and sell trees that were over 12 inches wide.
One of the children eventually hired a timber company that cut and sold a lot of wood from the trees.
When the last child passed away, the grandchildren took over. They were upset because they thought the trees belonged to them.
They sued the timber company and the estate, and claimed the trees were cut illegally.
The court’s verdict
The court had to decide if the children had the right to sell that wood.
In North Carolina, a person with a life estate usually can’t sell timber. Doing so is often called “waste” because it takes value away from the next owners.
But in this case, the will made a big difference. The court said the 12 inch trees were “severed” from the life estate.
This meant the children owned those specific trees and were allowed to sell them and keep the money.
However, there was a problem with the smaller trees. Some trees under 12 inches were also cut down. The court said the children didn’t have rights to those, so the timber company had to refund the money for the small trees.
Key takeaways
What’s the lesson we should learn from this case? Your paperwork must be perfect.
If you’re selling land you inherited, you have to read the will closely. You need to know exactly what rights you have and pay attention to any special clauses.
A mistake can lead to a long and expensive court battle.
How Timber Rights Affect Your Land Value
The value of your land changes based on the timber.
- If you have “merchantable” timber, your land is worth more. Merchantable meansthat the trees are large enough to be sold for wood products.
- Younger trees might be used for paper or cardboard. These are called pulpwood. They don’t pay as much as older trees.
- Older trees are used for lumber to build houses. Those are called sawtimber, and they’re worth more money.
When you sell your land, a buyer will look at these trees.
A developer might want clear land, so they might not care about the trees. But a timber investor will pay a premium for a healthy forest.
You should always get a timber cruise before you sell. This is when a professional forester walks your land, counts the trees, and estimates their volume. This gives you a clear idea of what the “stumpage” is worth.
If you don’t know the value, you might sell too cheaply.
Some buyers look for landowners who don’t know what they have. They might offer you a “fair price” for the land but keep the timber rights for themselves.
You want to make sure you’re getting paid for everything.
Choosing the Right Timber Contract
If you decide to sell your timber before you sell the land, you need a contract. Don’t ever do a deal with just a handshake. You need a written agreement that protects your property.
There are two main ways to sell your timber in North Carolina.
Each one has its own pros and cons. You should choose the one that best fits your goals.
| Sale Type | How It Works |
| Lump Sum Sale | You get one big check upfront before any trees are cut. |
| Pay-As-Cut Sale | You get paid per truckload as the wood leaves your property. |
A lump sum sale is great because you get your money right away and don’t have to worry about how many trees the logger actually takes.
The risk is on the buyer. If the market price drops, you still keep your money.
A pay-as-cut sale is different since you only get paid for what is harvested.
This can sometimes lead to more money if the logger finds more wood than expected. But you have to trust that the logger is being honest about the loads.
Property lines
Your contract should also talk about property lines. It’s a good idea to have your boundaries marked with paint. This helps prevent timber trespass.
After all, you don’t want the logger accidentally cutting the neighbor’s trees!
Right-to-halt clause
Including a “right to halt” clause lets you pause the logging if the ground gets too wet. This is crucial because heavy trucks can ruin your soil if it’s muddy. Protecting the land is just as important as getting paid for the wood.
A Realistic Timeline for Selling Timber
Selling timber isn’t something that happens overnight. It takes time to do it the right way. If you rush the process, you might leave money on the table.
As an example, let’s follow the story of the Miller family. They had 40 acres of pine trees in North Carolina and wanted to sell the timber before selling the land.
Here’s a breakdown of their experience:
- Day 1 to 14: The Appraisal. The Millers hired a forester to cruise the timber. The forester found that the trees were worth about $1,200 per acre, with a total value of $48,000.
- Day 15 to 30: The Bidding. The forester sent out a “bid invitation” to local loggers. This created competition: three different companies sent in offers.
- Day 31 to 45: The Contract. The Millers chose the highest bidder, who offered $52,000. They signed a lump sum contract, and the buyer paid the full amount upfront.
- Day 46 to 90: The Harvest. The logging crew moved in and spent a month cutting and hauling the wood. The Millers checked the site once a week to make sure the roads were okay.
- Day 91+: Post-Harvest. With the logging finished, the Millers had clear land that was ready for a new buyer. They even saved some of the money for property taxes.
This process took about three months from start to finish. The Millers made a great profit because they hired a professional forester and got multiple bids.
Costs You Might Face
Selling timber does come with some costs you need to consider.
You have to spend a little bit of money to ensure you get the best deal. Most of these costs are worth it in the long run.
- The first cost is usually the forester’s fee. They might charge a flat rate for the cruise or a percentage of the sale.
- A typical fee is around 10% of the total timber value. This covers the cruise, the bidding process, and checking on the loggers.
- You might also need a survey if your lines aren’t clear. A surveyor might charge $500 to $1,500, depending on the size of the land. This is a vital step to avoid timber trespass lawsuits.
- Finally, there are taxes. When you sell timber, it’s considered income. In North Carolina, you might have to pay capital gains tax.
- You should talk to a tax professional to see how much you’ll owe.
Final Thoughts for North Carolina Landowners
Understanding timber rights is a big part of being a smart landowner. You deserve to get the most value out of it when you decide to move on.
What you need to keep in mind
The Jackson case taught us that ownership isn’t always simple. It’s worth the time to check your deed and your family’s records.
Always use a written contract and work with professionals. A good forester is your best friend in this process since they’ll protect your interests and help you avoid common traps.
Checklist for Selling Land with Timber
Here’s a short checklist you can use for selling timber on your land.
- [ ] Review your deed for any mention of timber rights
- [ ] Check any wills or inheritance documents for “life estate” rules
- [ ] Hire a professional forester to do a timber cruise
- [ ] Mark your property boundaries clearly with paint or signs
- [ ] Get at least three bids from different timber buyers
- [ ] Sign a written contract before any trees are cut
- [ ] Set aside money for taxes after the sale is complete
- [ ] Decide if you want to sell the timber first or the land and timber together