The Montana residential real estate purchase agreement (“general residential sales contract”) outlines the terms of a residential property deal between a buyer and a seller. The agreement specifies the amount to be paid to the seller, financing information from the buyer, and the closing date of the transaction.
Do Sellers in Montana Have to Disclose Property Defects?
Montana does not require real estate sellers to disclose any material defects. Certain states do not require the seller to disclose all defects (caveat emptor), meaning the buyer assumes the responsibility to conduct a real property inspection to seek out any potential defects with the property. In those states, if a buyer fails to conduct a proper examination, they may not have a legal alternative to reverse the real estate transaction.
Required Seller Disclosures in Montana
Although with any material defects with the property, sellers in Alabama will also need to provide the following:
- Owner’s Property Disclosure Statement. 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.
- Condominium. When selling a unit that is part of a larger project, 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.
- Lead-Based Paint Disclosure. Any home that was constructed earlier than 1978 must come with a disclosure upon the transfer of the property that includes any data concerning the presence of lead on the premises as well as educational materials that communicate the risks involved with coming into contact with the harmful substance.
- Methamphetamine Contamination. 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. 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. 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.
- Radon. 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. 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.
