To sell or buy a home in Montana, the seller and the buyer must draw up a real estate purchase agreement. The form under review is a document that secures both parties to the transaction since it contains all the agreement’s conditions. The agreement is a legally binding document for the sale and purchase of any property in Montana.
After studying our article, you will find out what must be contained in a printable purchase agreement form designed to sell residential or commercial real estate, laws that govern this document, and the types of disclosures that must be made.
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As per Montana State Law §70-20-101, any sale of residential real estate must be confirmed with a written agreement. The real estate sales contract must contain all details regarding the transaction. If something is not in the contract, then it is not applicable in life. For your contract to be complete and in compliance with the laws, make sure it contains:
Montana is a “buyer beware” state in which the seller has little or no responsibility for full disclosure of the home’s physical condition (by Montana Code §37-51-313). However, it would be best if you did not think that buyers here are not protected in any legal way. There are many exceptions to this rule, which we will tell you about below.
This official document is an agreement between a commercial property’s buyer and seller. Just as in the previous case, the record must contain both parties to the transaction, the reason for the transaction, its object with a description, and all financial and timing conditions.
After negotiating the conditions and reaching an agreement, the parties must state all the provisions in writing and sign the document. Often such a document is also given to witnesses for signature, but this is not required.
The state has a “buyer beware” principle. Thus, the buyer of commercial real estate often includes a special clause regarding the inspection of the premises. Moreover, you can indicate that if particular defects are found at a specified point, they must be eliminated at the seller’s expense. And you should write down all the terms.
As we mentioned, in Montana, the buyer takes responsibility for the property after purchasing it. Nevertheless, there are several disclosures and cases when the seller needs to warn the buyer about some qualities or indicators of real property.
1. Lead-Based Paint Disclosure
This rule applies in Montana and in all other states. According to 42 US Code §4852d, this form must be issued to anyone intending to buy a property built before 1978. The reason is that up to that time, paint that was used caused harm to human health. This disclosure contains information about whether or not such paint has been used. To get this information, one needs to contact the local property assessor’s office.
2. Mold Disclosure Statement
According to §70-16-703 of State Law, all property sales agreements in the state must contain a statement about mold, including:
3. Methamphetamine Production
If the seller is aware that there was a methamphetamine laboratory on the territory of the property, they must inform the buyer in writing. The requirements for this disclosure are set out in §75-10-1305 of Montana Law. It is very important because methamphetamine releases a hazardous substance during production, and toxicity can enter the room itself.
4. Radon Disclosure
By §75-3-606 of Montana Code, if the seller is aware of the availability or testing of real estate for radon gas and radon progeny, they should disclose all information to the potential buyer.
5. The Unit Ownership Act
The unit ownership act must be issued to buyers purchasing properties that are part of a larger project (Condominium). Also, the seller must provide all governing documents listing the rules and regulations prescribed by the administration. Please see §70-23-613 (2) of Montana Law for details.
6. Water Rights Disclosure
According to §85-2-424 of the Montana Code, the seller must inform the residential property buyer if any water rights are transferred. This item is not required if the property uses a public service for its water supply.
7. Seller’s Property Disclosure Statement
State law does not require this from the seller, but it is nonetheless highly recommended for several reasons:
8. Brokerage Relationship Disclosures
According to §37-51-314 of the Montana Code, if the services of a real estate agent are used, the broker must disclose the existence and nature of the relevant agency or other relationship to the involved parties. It is also necessary to include a written statement in the contract.
In addition to this, it is important to note that the seller cannot hide information if: