The Montana residential purchase and sale agreement is a document completed by a prospective homeowner in order to negotiate the terms of the purchase and sale of real estate. The buyer will record their offer in the agreement, along with any contingencies, the offer expiration date, and whether they will require financing to make the purchase.
It is not uncommon for sellers to reject the buyer’s initial proposal, and various revisions of the agreement may be needed until the parties find the arrangement is mutually beneficial. Once the buyer and seller complete the transaction negotiations and both sign the agreement form, the proprietary rights of the residence are legally transferred to the new owner.
During the process of selling a unit that is part of a larger property (such as a condominium), the seller must ensure that the following disclosure requirements are satisfied:
Individuals transferring real property are obligated to present the buyer with a disclosure for hazardous substances such as lead paint and an informational guide on how to identify and handle such materials (not required for any property built after 1978).
If the residence previously harbored a methamphetamine laboratory and has not been decontaminated to the standards outlined in § 71-10-1303 by a certified contractor, the prospective buyer of said contaminated property must be informed of the property’s previous activity involving illegal drug manufacturing and contamination.
The seller of a home is required to notify the buyer of any mold present on the premises. The following statement must be included on at least one (1) document provided to the buyer:
The developers of newly built homes that have not yet been occupied are required to provide potential buyers with a written document listing the inspections and tests that have been performed on the property. They must also provide a one (1) year minimum express warranty of the home’s components.
An inspection of the home is not required before transferring ownership of the property to the buyer; however, it is the seller’s agent’s duty to disclose any adverse facts concerning the property that may deter the buyer from completing the purchase.
The buyer of a residence must receive and sign a document containing the following statement disclosing the health risks associated with radioactive gas:
The seller should also provide the results of any radon gas or progeny tests that have been performed on the residence.
If a home that is being transferred to a new owner is supplied by a private water system, the new owner must include in the agreement or other written document a water rights disclosure that states whether there are any water rights associated with the property and whether or not they will transfer with the property. Additionally, the DNRC Water Right Ownership Update (Form 608) must be completed if all water rights are being transferred to the new owner.
Montana is a state that observes a “Buyer Beware” rule, which holds purchasers of real property responsible for inspecting a property thoroughly to identify any material defects or adverse facts that may dissuade them from finalizing the transfer. If the seller is being represented by an agent, the agent is not required to perform any inspections or verify statements made by the seller. Nonetheless, the seller cannot prevent the buyer from discovering any material defects and is required to provide state-mandated disclosures, including a list of material facts that may potentially deter potential buyer’s.