FOROS auction offers forestry companies and investors a quick and convenient way to purchase ready-for-sale forests in the territories of Lithuania and Latvia. With our unique auction platform, forest buyers do not have to live in the country where they want to buy the forest. Even if they live in the same country, they’re not required to attend meetings, order documents, or coordinate time with a notary — everything can be done remotely.
If you think this sounds easy, you’re right. Buying forests through the foros.auction platform is straightforward — you just need to know a few key points that will help you understand how the entire forest acquisition process works. These include what you need to start with to purchase the forest, what needs to be done, what can’t be forgotten, and why it is worth buying forest through the FOROS platform. All answers to questions related to forest acquisition at FOROS auction are included below.
Forests are not only bought for cutting
Forests are mostly purchased by companies and their collaborators who are engaged in forestry activities. In simple terms, they maintain, replant and grow forests to cut, and they earn from the sale of timber. However, individuals or companies interested in tourism development also buy forests. These forests are often near water bodies or in picturesque places.
In any case, while it is impossible to say in advance how much your forest is worth, since it depends on many factors, you can still assign your own worth.
According to the latest statistics in Lithuania, the area of forests, mature stands, and total stands are increasing. This has an impact on the interest in investing in immature stands. During this period, both Lithuanian and Latvian companies are actively and intensely competing for forests for sale in order to invest in forests with high future values.
How is the forest purchased?
This year, anyone who decides to buy forest as an investment or for another reason will need to regard a newly introduced act from 2020 1 January.
Those who wish to purchase forestry land must first obtain the consent of the National Land Service. In the past, this was not required. From now on, buyers must pay a state fee for the consent to purchase forestry land. The cost of this fee varies between natural and legal persons. This change extends the purchase of the forest to 15 days, which is about the time it takes to obtain consent.
However, this law should not cause much worry or loss. Our auctioneer, Forest Sales Managers, can help with everything from preparing a report to coordinating the entire process. Contact for consultation: firstname.lastname@example.org
The adoption of this law was influenced by the simultaneous introduction of another law, which since 2020 1 January has restricted natural and legal persons from managing forest holdings larger than 1,500 ha.
In Lithuania, this law has caused great confusion, and the activities of large forestry companies have become paralyzed. These companies can no longer buy and cut forest areas as they could before. Perhaps, in the long run, foreign citizens will control all Lithuanian forests? In total, why buy those 1,500 hectares if you can’t profit from them?
Buying or selling a forest is an individual decision, but no one will deny that forests are extremely stable real estate. It is important to keep in mind where to start and where to go to buy or sell your forest. Today’s precious property like the forest is a great target for those who want to profit from it.
It’s rare a person knows how much their forest is worth, what its value is, etc. Professionals with extensive forestry experience can not only coordinate the entire buying/selling process and provide the necessary documentation, but they can also give advice and help people get the highest price for their forest.
The forest purchase process is not always the same
As most things are done domestically, the forest purchase/sale process differs in other countries.
As an example, let’s look at Latvia. It is one of the most forested countries in Europe. It has 3.2 million forested ha. In other words, 52 percent of common areas are forested. The average private forest area is 13.0 ha, which is almost 4 times larger than the average in Lithuania. LVM (Joint Stock Company – Latvian State Forests) owns 1.63 mln. ha of state forests, of which 1.60 million ha is forest land. About 20 percent of forests are protected or have environmental restrictions.
Thus, with such a large woodland in Latvia, there are far fewer laws to buy them there than in Lithuania. This makes it easier for forest buyers to purchase forests in Latvia than in Lithuania. The main difference and the biggest plus for the buyer is a quick forest sale procedure. It takes an average of 10 business days for the forest buyer to obtain approval from the Land Registry (Latvian Land Registry) for the transfer of ownership of the land.
Advantages of buying forests at auction
- Every month about 1000 ha of forests are ready for sale
- Buyers can purchase forests in Lithuania and Latvia
- Timber, forest and land auctions compete in real-time
- 478 successful transactions
- Total forests sold for € 12,090,499
- A total of 6924 bets have been placed
- Transparent and honest business, no chance of being cheated
The main stages leading to successful forest acquisition at auction:
- Sign up for FOROS
- Automatic bet
- Feature function
- Forests surveyed by the forester
- Preparation of documents and reservation of notary time
- Sign the contract
- Bid at auction
- Win the auction
Besides, buying a forest is time-consuming and it requires knowledge. To make things easier, we are a FOROS auction that can facilitate the forest purchase process and advise on forestry issues. FOROS can be a great start for those who want to start a forest buying/selling business, or for ordinary individuals looking for a quick, convenient, and honest way to purchase forests.
Don’t wait and sign up for the FOROS auction: Buyer Registration →