Property problems: Forestry right can separate land from trees

Monday 27 September 2004

Q. I have a rural property that has a block of high-quality trees on it. I would like to sell the property but retain the forestry block. I have been told I could do this by subdividing the block off or creating a lease. Either approach seems expensive. Is there a simpler way?

A. We suggest you investigate the use of a forestry right (often referred to as a cutting right

By The Landlord

) under the Forestry Rights Registration Act 1983.

The act creates an easy, flexible and legally binding mechanism to allow for the creation of separate interests between the land owner and trees grown on the land. The act allows for the creation and registration against title to land of an agreement for the separate ownership and access to, and management of, trees on the land.

In essence, the act created a new type of statutory land interest - a forestry right.

A forestry right may be granted to establish, maintain and harvest, or maintain and harvest, one or more tree crops.

The forestry right concept is very flexible and allows the parties to record their contractual agreements covering any number of different situations.

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