Montana Real Estate Contract: Different Types and Key Terms to Include

Quick Facts — Real Estate Contract Lawyers

What is a Montana Real Estate Contract?

In Montana, a real estate contract is a legally binding agreement between a buyer and a seller for the purchase of real estate. These contracts are most commonly used to facilitate the sale of residential property like a house, but can also be used for investment properties and commercial properties.

A real estate contract’s purpose is to outline the terms and conditions of the sale to protect the interests of both parties. All real estate contracts in Montana must be in writing and signed by both parties to be legally enforceable.

Common Montana Real Estate Contracts

The most common Montana real estate contract is a purchase agreement for residential property. Other common contracts include:

  • Commercial real estate contract. Used when buying or selling commercial property zoned for operating a business like an office building.
  • Contracts for deed. Used when a buyer agrees to make installment payments to the seller until the property is paid in full.
  • Lease agreements. Used by a property owner to rent out their space to a tenant for use.

4 Essential Elements of a Montana Real Estate Contract

All real estate contracts in Montana are governed by Montana contract laws. According to the code, all Montana real estate contracts must include these 4 essential elements:

  1. Identifiable parties who are legally capable of contracting
  2. Consent of the parties to enter a contract
  3. A lawful object
  4. Sufficient consideration

Is Montana a Buyer Beware State in Real Estate?

Montana is a "caveat emptor" state, which means that the principle of "buyer beware" applies in real estate transactions. Under this principle, the buyer is responsible for researching and investigating the property before making a purchase and the seller is not required to disclose certain information about the property.

Frequently Asked Questions

How do I hire a lawyer to draft a real estate contract in Montana?

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Attorney Tim Baldwin is the founder of Property Management Law Solutions, PLLC, a Florida law firm that specializes in representing landlords, property owners, apartments, and property management companies in a variety of property related legal matters, like evictions, security deposit disputes, fair housing matters, civil defense, damages actions, risk mitigation, partition, code violation, lease enforcement, and other real property litigation. Starting as a prosecutor from 2004 to 2006, Tim Baldwin gained invaluable experience as a courtroom litigator and to date has tried nearly 60 jury trials. When he opened his law practice in 2006, Tim focused his law practice on helping landlords in the Florida Panhandle. Since then, Tim Baldwin has expanded his law practice across Florida and become known as one of the premier Florida attorneys in landlord and property law. Tim regularly speaks at events for real estate groups, such as apartment and property management associations and real estate investment groups. Tim also hosts his own podcast, Property Management Law Solutions Podcast, where he discusses a wide range of landlord and property management related topics, and is frequently asked to be a guest on other podcasts nationwide.

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Asked on Dec 26, 2021

Can you purchase or refinance under a land contract?

I’ve been living here for 2 years. Currently have been working with my credit union and they are having a terrible time trying to understand the legalities of my land contract first off, and secondly they just don’t seem to know what they are doing. It’s been over 8 months, 4 different loan officers and I’m once again waiting for someone else to help finish this thing out. It’s only $60,000 with a $120,000 appraisal. So, as of now I am stuck paying 2.5x monthly under this land contract than I was promised would be an easy mortgage process. So any guidance in the right direction would be very helpful. It’s a New York home. 20 yr fixed, no balloon, with a (brace yourself) 12% apr. HELP ME PLEASE! One month I’m being told to authorize a credit check for a first time homebuyer grant method of mortgaging this property. The next it’s authorizing it for a refinance. I do have earnest money deposits for over $3,000 and another $3000 paid towards principal under this land contract also.

Jane C.

Answered Jan 11, 2022

I suggest you speak with a New York real estate attorney. That attorney needs to review the documents related to the transaction.

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I suppose it doesn't matter if you have the lease giving you permission and the lease is long enough to justify the building expense when you won't own it. But I'd buy the land so you could eventually sell the property with the building on it.

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A quit claim deed is effective upon execution so long as the deed is dated as of the date of signature. Execution means that the deed is signed, in front of a witness and a notary. The witness and notary must also sign the deed. Finally, the deed must be recorded. This means that the deed must be submitted to the Superior Court recording office of the County in which the property sits. Please let me know if you have any questions. Thanks, Meghan K Thomas

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WHAT ARE YOUR FEES TO PERFORM QUIT CLAIM DEED COMPLETE BUTTS COUNTY GEORGIA 30233

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Hi. The cost for my practice to prepare a Quit Claim Deed is $99. The Cost for me to handle the closing is $250 plus recording fees. These costs apply for any county within the state of Georgia. Let me know if you have any more questions. Meghan K Thomas

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