Montana Laws
Requirement to Record: Montana law does not require a purchase option to be recorded. However, without recording, constructive notice is not created.[1]
Expiration: There is no statutory expiration for constructive notice.
Maximum Term: State law does not set a maximum term for a residential lease and option to purchase.
No Duration: An option with no duration, or specified expiration date, will expire automatically when the lease expires.
Signing Requirements: Must be in writing and signed by the seller.[2]
Required Disclosures (5)
1. Landlord/Manager/Agent Identification – Tenants must be made aware of the names and addresses of person(s) authorized to enter the property with the amount of notice required by law, such as landlords and agents.[3]
2. Lead-Based Paint Disclosure & EPA Pamphlet – If the property was constructed before 1978, these disclosures concerning the possible use of lead-based paint must be provided to tenants.
3. Methamphetamine Drug Lab Disclosure – Landlords must notify tenants if the property has been the site of methamphetamine production and must also explain what steps were taken to remediate the damage.[4] This disclosure can be made through the Seller’s Property Disclosure Statement.
4. Mold Disclosure – All lease agreements must contain specific mold disclosure language.[5]
5. Move-in Inspection Checklist – Tenants should receive a move-in checklist to document the condition of the property at the start of a lease period.[6]
Seller’s Disclosures (2)
1. Agency Disclosure Form (required) – Requires the listing agent to “adverse material facts” on the property. This can be done by using the Seller’s Property Disclosure Statement.[7]
2. Statement of Mold Disclosure (required) – The following must be included in a purchase agreement:[8]
“MOLD DISCLOSURE: There are many types of mold. Inhabitable properties are not, and cannot be, constructed to exclude mold. Moisture is one of the most significant factors contributing to mold growth. Information about controlling mold growth may be available from your county extension agent or health department. Certain strains of mold may cause damage to property and may adversely affect the health of susceptible persons, including allergic reactions that may include skin, eye, nose, and throat irritation. Certain strains of mold may cause infections, particularly in individuals with suppressed immune systems. Some experts contend that certain strains of mold may cause serious and even life-threatening diseases. However, experts do not agree about the nature and extent of the health problems caused by mold or about the level of mold exposure that may cause health problems. The Centers for Disease Control and Prevention is studying the link between mold and serious health conditions. The seller, landlord, seller’s agent, buyer’s agent, or property manager cannot and does not represent or warrant the absence of mold. It is the buyer’s or tenant’s obligation to determine whether a mold problem is present. To do so, the buyer or tenant should hire a qualified inspector and make any contract to purchase, rent, or lease contingent upon the results of that inspection. A seller, landlord, seller’s agent, buyer’s agent, or property manager who provides this mold disclosure statement, provides for the disclosure of any prior testing and any subsequent mitigation or treatment for mold, and discloses any knowledge of mold is not liable in any action based on the presence of or propensity for mold in a building that is subject to any contract to purchase, rent, or lease.”