The Montana purchase agreement is needed to transfer real property from one individual to another. In Montana, any sale of residential property must be documented in writing pursuant to § 70-20-101. It is important to list the various features of the transaction within the form, such as the total payment for the home, terms & conditions of the sale, time & date of closing, and the amount the buyer is willing to deposit in good faith. After coming to an understanding of how the exchange will be settled, the buyer & seller can produce a binding agreement by endorsing the necessary fields within the form.
Condominium (§ 70-23-613(2)) – When selling a unit that is part of a larger project, owners/sellers must give the prospective buyer a copy of the Unit Ownership Act and any governing documents that list the rules and regulations prescribed by the association/administration. (If the individual/corporation/legal entity selling the property constitutes a majority of the unit owners, they must disclose this information as well.)
Lead-Based Paint Disclosure (42 U.S. Code § 4852d) – Specific to homes that were erected prior to 1978, this federal requirement commands vendors of residential property to furnish buyers with documents referring to any findings of lead paint on the premises as well as general information about the chemical substance itself.
Methamphetamine Contamination (§ 75-10-1305) – A dwelling that is deemed unfit to inhabit due to contamination caused by a methamphetamine laboratory requires disclosure from the seller that clearly states that the property has not received the proper remedial actions.
Mold (§ 70-16-703) – When selling a home, transferors shall provide the following information regarding mold:
- A written statement explaining what it is and how it occurs.
- Details on its presence within the property.
- Results of any testing that may have been previously performed.
Newly Constructed Residences (§ 28-2-2202) – Only applicable to properties that are new and have never been occupied, this disclosure calls for sellers/developers to hand over documentation to the purchaser that is relevant to any inspections/tests that have been conducted by the general contractor. An express warranty with the minimum expiration date of 1 year must also be delivered to the future owner upon entering into an agreement.
Owner’s Property Disclosure Statement (§ 37-51-313(3)(a), § 37-51-313(5)(a)) – Even though sellers are not obligated by law to complete a disclosure statement for the buyer’s benefit, it is still considered common practice within the state of Montana. The reason being is that the purchasing party will usually request this information in order to proceed with the transaction. Also, despite the seller having no obligation to provide disclosure, any agent involved in the sale is legally required to disclose any known adverse material facts.
Radon (§ 75-3-606) – The disclosure statement linked in the title should be included within the content of the purchase agreement and acknowledged by the buyer. If the building for sale has been tested for the radioactive gas, the seller is also obligated to present the buyer with the results of the examination.
Water Rights (§ 85-2-424) – The state mandates that the seller of a residential dwelling must inform the purchasing party whether or not the property retains any water rights and if the rights will be conveyed to the new owner upon the exchange of property. (This is not necessary if the property uses a public service for its water supply. If the water rights will be 100% transferred to the new owner, they must execute the DNRC Water Right Ownership Update (Form 608).).
Montana Association of Realtors – Adobe PDF