Help

AUCTION / submit bid:

Check the tree listing carefully before you place a bid. Note that each bid is legally binding. Enter your maximum bid under bid, confirm it with bidding and confirm bid. You always only pay 1.00 US $ more than the previous highest bid and get an email confirmation of Tree Trading World, which confirms that you are the highest bidder. If you are outbid, Tree Trading World will immediately inform you by e-mail. You can always increase your bid to get back to being the highest bidder.

Remember to only bid on a tree listing, if you are sure that you want to buy it. You agree to pay a transaction fee to the seller and to Tree Trading World if you are the highest bidder -   and automatically take over the related lease and maintenance contract.

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“How does bidding at Tree Trading World work?”

Before you get an overview of the available trees, you should know that the purchase of trees on the Tree Trading World platform is fundamentally binding and entails a series of activities:

1. Payment of the transaction fee to Tree Trading World
2. Agreement with the seller about form of payment
3. Payment of auction price.
4. Verification that the trees are transferred to your portfolio at the end. 

Therefore, please be certain that you really want to buy the offer if you emerge as the highest bidder of the auction. The withdrawal of a bid is only permitted if you are entitled do so by law (see general terms and conditions).

Now read the descriptions of the offer carefully, if necessary, check the seller's reputation and clarify any questions about the tree listing directly with the seller.

If you then like a tree listing and you are sure you want to make an offer, you proceed as follows: 

1. Select Tree offer from "Details"
2. Select a tree listing "Place Bid"
3. Insert the confirmation tick that you have read and understood the general terms and conditions and that you will take over the existing lease and maintenance contract for the acquired trees should you be successful at the auction.
4. Enter your maximum bid (in US $) *
5. Select "Bid"
6. Check your bid one last time
7. Select "confirm bid" if you want to place a binding bid
8. Select "change bid" if you want to change your maximum bid
9. Select "Close" if you do not place a bid or want to exit 

If you would like to make further bids during the auction, please proceed as follows: 

1. Go to your portfolio under "Running Auctions"
2. Locate the corresponding tree offer.
3. Choose „open offer" and follow the above procedure from 2.

You may repeat this process as often as desired until the end of the auction is reached.

Following each bidding at an auction you will receive an e-mail in your e-mail account on the status of your bid.

At the end of the auction you will receive an e-mail whereby you will be informed if you are the winning bidder and have thus acquired the tree listing.

(*) If you place a bid, we recommend that you enter your personal limit as maximum bid that is the highest price you are willing to pay. Often the actual purchase price is less than your maximum bid.  Our Tree Trading World System compares your bid with bids from other bidders and only increased by the smallest possible amount, which is necessary in order to continue to be the highest bidder.

Auto bidding: Tree Trading World uses an automatic system which makes bidding even easier for you. You can use this feature immediately for your bids without special installations.

Increasing steps: The Tree Trading World System is based on increasing steps. The increment is the amount by which you need to increase your current bid to get back to being the highest bidder.

Secure Bid: The contact data, i.e. names of the bidders participating in the auction, are not shown publicly at Tree Trading World.

Trees are hundreds, some of even a thousand years old and they become more precious

with each passing minute. The biomass calculation is based on the following formula using A for biomass, U for circumference and h for height:

FORMEL: A = (U²/(4*π))*h

Below the point biomass (total), all the biomass data of individual trees included in the offer were summed.

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Exponential Growth of Biomass 

Example AMERICAN MAHOGANY - (Swietenia Macrophylla)

The timeline shows the evolution of mahogany trees over the first years.

The mahogany seedlings have a circumference of 4 cm and an approx. height of 3 cm at the time of planting. Over time and through continual maintenance, the trees achieve a circumference of 1 m and a height of 10 m after approximately eight years. Once the trees reach the age of 12, earliest cutting age, they will maintain an approximate circumference of 1.30 m and a height of 20 m.

 

Expected average growth in the first 8 years AMERICAN MAHOGANY - (Swietenia Macrophylla)                                     

What are the components of the estimated value of a tree? 

The value a tree is composed of 2 values, which have an opposite effect.

1. Lease and Maintenance Value

At the time of planting the lease and maintenance value of a tree is calculated at 100% of the value of the tree. This lease and maintenance value pays for the acquisition of the tree, planting and maintenance, as well as the lease. 

The lease and maintenance value thus decreases continuously. 

1. Biomass Value

The biomass of a tree is calculated from the volume of wood of the tree, which steadily increases with age (max. to 50 years), multiplied by the tree price obtainable in the country of production, minus exploitation costs.

The biomass value of a tree thus increases continuously.

Under the point estimated value (total) all estimated values ​​of individual trees contained in the offer are added up

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The estimated value, which is indicated for each tree, is the calculated average value of a tree of this age.  However, each tree offered may differ significantly from the estimated value, in both directions.

Calculation of estimated value:

Example with reference to the species: American mahogany (Swietenia Macrophylla)

The lease and maintenance value of the tree is calculated at 100% of the value of the tree at the time of planting.

This lease and maintenance value pays for the acquisition of the tree, planting and maintenance, as well as the lease for 12 years (144 months), depending on the contract. Currently 0,903 US $ cents per month, 10.83 US $ per year.

After 144 months, the lease for the remaining trees will be reduced to US $ 5.50 per year. The tree owner pays the lease for the tree annually at the beginning of the lease.

Expertise means the opinion of an expert. Based on the English language (Eng. "Expertise" = competence, expertise), in cognitive psychology the term is also used as knowledge of experts. In a misunderstood transfer from English the term is also often falsely used instead of „knowledge", "experience", "know-how" and similar, although in German it basically means „expert opinion / assessment". 

Source and link: https://de.wikipedia.org/wiki/Expertise 

Such an expert opinion may mean, for example, the authenticity and value of the current tree offer and your own tree portfolio, or even individual trees. 

By preparing a valuation by an expert, diameter, height and quality of your trees are determined and your offer on TTW is thus much more attractive because it is offered with verification and provided with its own images.

The price of an expert opinion depends on the number of trees to be assessed:

000 - 010 Trees = 10.00 US$ per Tree

011 - 050 Trees =   8.00 US$ per Tree

051 - 099 Trees =   7.00 US$ per Tree

100 - 250 Trees =   6.00 US$ per Tree

251 - ..... Trees =   5.00 US$ per Tree

For further information contact us under: info@treetradingworld.com

Overall an area of approx. 240 hectare land is being farmed, which is situated at an altitude between 80 and 300 meters and has a hilly topography. The exact coordinates of the individual locations operated by MTI are:

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• Los Castillos:      Amplitude: 19°43’25.28”N; Length: 70°32’42.80”W
• Los Palmaritos:  Amplitude: 19°28’14.40”N; Length: 70°05’51.00”W
• Arroyo Sabana:  Amplitude: 19°30’48.80”N; Length: 70°05’30.00”W
• La Yasica:         Amplitude: 19°39’38.85”N; Length: 70°28’10.78”W

 

All plantations managed by Majestic-Trees, S.R.L. and Majestic-Trees Inversiones, S.R.L. (See help) are generally operated as mixed cultivations. Planting other crops in the plantations has multiple positive effects. For example, the ground is permanently covered, thereby preventing erosion by tropical rain. Besides, additional revenue structures can be created by allowing judicious cultivation of other crops such as cocoa, avocado, papaya, or tubers, which make it possible to subsidize maintenance and rearing costs payable by the customer transversely, thereby keeping the price attractive. In the context of these mixed cultivations the cocoa plant is of particular importance, since it also acts as a natural pesticide because of its special properties.

Link - Growth forecast

Buy Instantly

Check the tree listing carefully before you confirm “buy instantly”.

Please note that any bid for an instant buy is legally binding.

With the purchase of a tree offer via “buy instantly” the buyer agrees to pay the seller and the transaction fee and automatically takes over the existing lease and maintenance contract.

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For further information take a look under Help - Transaction Fee and Lease and Maintenance Contract, or General Terms and Conditions.

Security & Insurance

The top priority when purchasing trees is to secure the investment. Special attention is paid to the following factors:

1. The replanting guarantee:
Majestic-Trees guarantees for every mahogany tree that has been purchased an unlimited replanting guarantee in case of the dying of the tree within a period of 12 years. The costs for seedlings, the extension of care and the lease are taken care of by Majestic-Trees, which means that the owner of the tree only loses time, in case the tree is not additionally insured.

2. The insurance:
The agricultural insurance of the Dominican Republic "AGRODOSA" www.agrodosa.com.do insures the value of the trees (calculated by biomass), planted on the registered property part. At the beginning, only the restoration value is insured, that is, the replanting in the event of damage. Once the tree reaches the age of 3 years, the complete loss of biomass is replaced in the event of damage. The insurance premium is 4% per year of the biomass value of the insured trees, but the Dominican Republic's government assumes 50% of the insurance premium as project support. The owner of the tree therefore pays only 2% of the insured amount per year. The annual insurance premium thus increases in the same proportion as the increase in the biomass of the insured trees. In case of damage, AGRODOSA is reinsured, 35% is covered by Munich Re and 50% by Swiss RE. The insurance is concluded for one year and can be renewed every year.
Trees are only insured if the insurance policy is attached to the tree information indicating the duration. The policyholder is the operating company Majestic-Trees SRL, which assigns the insurance claims to the respective tree owner in full in the event of damage.

3. The monitoring:
Majestic-Trees' maintenance staff lives and works on the farms, thus ensuring continuous control and monitoring of the trees. Each individual tree is individually viewed and inspected at least once a month. The trees are pruned once a year and are inspected separately by the forestry expert.

Basis of contract / takeover of the existing contract of ownership of  the trees.

Hereby the buyer confirms to have read and understood the corresponding purchase and service contract of the previous owner (find this in our contract database (link)), and upon purchase, he fully enters into the rights and obligations under this purchase and service agreement.

LINK:purchase and service contract (12 years);purchase and service contract (15 years)

 
6.1.2. Property Law "la mejora" (improvement)

The buyer  who acquires a tree in the Dominican Republic does not acquire land, but the unrestricted use and exploitation of the acquired trees, hereafter referred to as "Mejora". This "Mejora" cannot be revoked by the property owner. The legal “Mejora” right remains unaffected in case  of change of ownership or foreclosure of the land and persist until the end of the term.

With the purchase of a tree by the buyer the "Mejora" is fully paid up to the earliest possible recovery period after 12 years.

If after 12 years the tree has not been harvested, the tree owner pays Tree Trading World a further annual „Mejora" totaling US $ 5.50 per tree. Trees can only be traded as long as their respective "Mejora" is paid for at least 90 more days.

Majestic-Trees Inversiones, S.R.L. has acquired the unrestricted use and exploitation rights for all trees traded through Tree Trading  World and has transferred it to the respective tree owner with the first sale for 12 years. Currently, the entire duration of ownership of the trees is restricted to 30 years from planting, thus every tree owner is able to use his "Mejora" for 30 years. This ensures that the trees acquired by the customer can grow at least 30 years.

With the purchase of a tree, the new tree owner agrees to enter into an existing lease and maintenance contract and to take it over from the seller in full. The buyer of trees is responsible for the lease and maintenance costs (US $ 5.50 per tree, per year) from the 13th year onwards and can pay those costs directly through treetradingworld.com. Should he not shoulder this obligation, Majestic-Trees Inversiones, S.R.L. is entitled to exploit as many trees of the tree owner at the currently recoverable price to pay the "Mejora" for all the trees which continue to remain in the portfolio of the tree owner for 12 months. Hereby those trees are utilized, which, under a forestry aspect, appear to be the most suitable to Majestic-Trees Inversiones, S.R.L.

If the "Mejora" is not paid the tree owner forfeits the right to decide on the selection of  trees to be utilized. If there is only a single tree in the portfolio of the tree owner and he does not pay his "Mejora", Majestic-Trees Inversiones, S.R.L. is entitled to use this one tree. The proceeds will be paid to the tree owner without request to the account indicated by him. Majestic-Trees Inversiones, S.R.L. may at any time  decide to  let the tree alive based on the best utilization offer  by  a third party,  and  pay the tree owner the recovery amount offered by the third party.

lease paid up till…

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With the purchase of a tree, the tree owner agrees to enter an existing lease and maintenance contract and to take it over from the previous owner.

The existing lease and maintenance contract is paid up till: .... /.... /....

The lease and maintenance contract will be automatically renewed after this date.

If no timely notice in writing has been submitted by the contracting party (current tree owner), the tree owner undertakes to pay the costs arising from the lease and maintenance contract and he must pay these costs through treetradingworld.com.

Farm Management

Majestic-Trees, S.R.L. oversee four precious wood plantations in the Dominican Republic. It is responsible for the planting, care and supervision of trees over the entire growth time period. The plantations are carried out exclusively in permaculture, in a rain forest-like environment by qualified specialists, under the supervision of the Dominican Ministry of Environment. Special emphasis is given to purely biological fertilization, pest-free growth and the compliance with exemplary social standards.

As the developer of the GPS chip system, Majestic-Trees, S.R.L. is able to monitor every tree perfectly, right from the beginning.

There are three key reasons for the location of the farms in the Dominican Republic:

• Any profit which is gained through reforestation in the Dominican Republic is 100% tax- free.
• The Dominican Republic is the third biggest mahogany importer worldwide, thus ensuring a strong sales market in the producing country.
• The damp, tropical climate, the fertile land and the year-round precipitation offer an optimal base for the cultivation of biologically high-quality mahogany trees.

In addition, Majestic-Trees, S.R.L. gets extensive support from the Ministry of Environment, as well as from the national large-scale project “Quisqueya Verde“, a reforestation program of the Dominican Republic, which was honored at the Kyoto protocol 1987 as a lasting program for the reduction of the greenhouse gases.

https://www.majestic-trees.com

To date, the Dominican Republic is the leader among all the Caribbean countries with a reforestation quota of 8% p. a.

Majestic-Trees, S.R.L.  "Plants Ten trees for every tree they harvest" 

Legal – Controlling 

Majestic-Trees Inversiones, S.R.L. is the company responsible for structuring of the management of all land and farms where trees are planted.

It supervises the GPS data assignment of all the trees. In collaboration with the Ministry of Environment and the

Dominican government, it carries out the certification process of the harvesting.

As the holder of property titles, Majestic-Trees Inversiones, S.R.L., carries the responsibility for the legal aspects of the properties.

In the case that farms are integrated with other land owners, Majestic-Trees Inversiones, S.R.L., is responsible for the legal review and assurance of the land titles.

The tree was planted on the

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Tree Trading World has developed a unique system for tracking every individual tree that we plant

To ensure smooth organization of the trees, a unique chip system was developed, in which each tree receives an individual control number. After planting, each tree is photographed with its control number, mapped and automatically provided with its planting date and GPS data.

If a purchase takes place, the buyer’s information is linked to the tree information in an individual Tree Knowing Number (TKN). The TKN identifies the buyer as the legal owner of the tree. Because of the GPS-data, each owner has the ability to locate his trees via Google Earth and other internet maps at any given time.

If a tree transfer is done, only the customer information in the TKN changes, but the tree information remains the same.

 

The estimated value of your tree portfolio is made up of following points:

• Number of trees
• Age of trees and the average resulting biomass
• Remaining lease-and maintenance value of the trees
• Expertise of the trees

Through the preparation of a valuation by an expert, the volume, height and quality of your trees is determined and your offer on Tree Trading World is more attractive because the trees are verified and provided.

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The transaction fee for a tree traded through Tree Trading World  is US $ 3.50.

The age and the value of a tree do not affect the transaction fee.

This transaction fee covers the cost of operating Tree Trading World and includes the following services:

• Provision of Internet and trading platform
• Administration of all customer, tree and partner data
• Control of all data given and their verification for authenticity
• Monitoring of trading activities
• Transfer of the acquired trees to the portfolio of the new owner.

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When purchasing trees, always remember that Tree Trading World calculates the transaction fee only per tree and it does not depend on the value of a tree. Thus, you can save money with older trees.

Should you want to purchase a tree listing, we would ask you to pay the transaction fee first, before we allow you to contact the seller.

Methods of payment available at Tree Trading World:

Depending on the country in which your account is registered, we support various payment methods. The options include amongst others the following:

• PayPal
• Credit cards
• Transfer

If a payment method is not listed in this area, it means that it is currently not available and cannot be used.

American mahogany

Swietenia macrophylla, commonly known as mahogany, Honduran mahogany, Honduras mahogany, or big-leaf mahogany, is a species of plant in the Meliaceae family. It is one of three species that yields genuine mahogany timber, the others being Swietenia mahagoni and Swietenia humilis. It is native to South America and Mexico, but naturalized in Singapore and Hawaii and cultivated in plantations elsewhere.

The species is also known under other common names, including broad-leaved mahogany, Brazilian mahogany, large-leaved mahogany, genuine mahogany, tropical American mahogany, and sky fruit, among others.

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The American mahogany (Botanical name – Swietenia Macrophylla) is a deciduous tree; it grows up to 40 m, rarely up to 70 m, and can reach a trunk-diameter of 3.50 m. It has a knot-free trunk of up to 25 m and is very useful for the timber industry. Fully grown trees have pronounced buttress roots. The bark is brown-gray to red-brown and deeply furrowed, the inner bark is red-brown to pink. The strong staying power, great dimensional stability, easy processing and the high resistance to fungi and insects also make it worldwide one of the best woods from a technical point of view. 

Source and link: https://en.wikipedia.org/wiki/Swietenia_macrophylla 

The price visible HERE is the actual price of wood, which currently can be obtained in the country of production. This price is adjusted daily and arises from the crude price obtainable at the local timber trade for average mahogany boards.

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American mahogany, the premier class of precious woods, is an intrinsic value and a naturally renewable, coveted resource.

The current price per cubic meter of mahogany in the country of production is shown on the top right of the TTW homepage.

(By comparison: the price for 1 m³ of spruce is currently between 50,00€ - and 80,00€.).

After planting, the biomass of the sapling develops by natural growth, initially linearly and exponentially after the 7th year. Over the years, the tree not only increases its circumference but at the same time its height.

The demand for mahogany, a tropical hardwood, has increased by 25% from 1994 to 2010 and, in the opinion of almost all well-known experts, will continue to increase in parallel with the world population in the future.  (Source: International Forestry Review). 

Therefore, the acquisition of live mahogany trees offers an excellent risk-reward ratio.

Anyone investing in precious wood today is acting forward-looking and benefits primarily from volume growth of the raw material.

Current market price and market fluctuations are hereby only marginal factors. Due to the almost unlimited lifespan (up to 500 years) of living mahogany trees, a tree owner can sell at exactly the time it seems most beneficial.

In addition to the timber volume and the price of wood, the price increases that can be observed over the years and the exchange rate from US-$ to Euro are other factors that need to be taken into account:

• The average price increase in the years 2010-2015 averaged about 4%. Price increases or price reductions are not considered in our forecasts.
• We always calculate with the actual price obtainable in the country of production on the day of recovery.
• Wood prices are calculated in US-$ and converted into the currency relevant for you.