FOREST PROPERTY ACT 2000 - SECT 5

FOREST PROPERTY ACT 2000 - SECT 5

5—Types of forest property agreements

        (1)         Forest property agreements are of 2 types—

            (a)         forest property (vegetation) agreements; and

            (b)         forest property (carbon rights) agreements.

        (2)         A forest property (vegetation) agreement separates ownership of forest vegetation from ownership of the land on which the vegetation is growing, or is to be grown, by transferring ownership of the forest vegetation from the owner of the land (the "transferor") to another (the "transferee") without severance of the vegetation from the land.

        (3)         A forest property (carbon rights) agreement separates ownership of carbon rights from ownership of the vegetation to which the carbon rights relate by transferring ownership of the carbon rights from the owner of the vegetation (the "transferor") to another (the "transferee").

        (4)         A forest property (vegetation) agreement may reserve to the transferor the right to take edible fruits from the forest vegetation.

        (5)         If ownership of land has been, or is to be, separated from ownership of forest vegetation growing or to be grown on the land, a forest property (carbon rights) agreement may only be made if both the owner of the land and the owner, or prospective owner, of the forest vegetation are parties to the agreement.

        (6)         If the owner of land on which forest vegetation is growing or is to be grown has entered into, or is about to enter into, a forest property (carbon rights) agreement, a forest property (vegetation) agreement separating ownership of the land from ownership of the forest vegetation may only be made if both the owner of the land and the owner, or prospective owner, of the carbon rights are parties to the agreement.

        (7)         A forest property agreement may take the form of a declaration of trust and, in that case, a reference to the transferor is a reference to the owner of the relevant land or forest vegetation as settlor and a reference to the transferee is a reference to the owner in his or her capacity as trustee under the trust.