Additional Topics
Area IV is worth 4 of the 40 scored items and lists six subtopics: errors and omissions insurance; land description; common interest ownership and condominiums; the landlord/tenant relationship; foreclosure and redemption; and the statute of frauds. Land description and the statute of frauds are also covered on the national portion, so the Montana-specific weight sits with the other four.
Errors and omissions insurance
Montana requires continuous professional liability coverage for the whole period of an active license, covering activities under Title 37, chapter 51, part 3, including errors and omissions (37-51-325(1), MCA). Coverage may come from the board's approved group policy, an independently obtained policy, or a policy issued to the affiliated firm (37-51-325(2)). The group policy and an individual policy each need a minimum per-claim limit of $100,000, a minimum annual aggregate of $300,000 and a deductible of no more than $2,500 a claim (37-51-325(4)(b), (6)). A firm policy needs a per-claim limit of $100,000, an annual aggregate of $1 million and a maximum deductible of $10,000 a claim, which may run up to $100,000 only with board approval based on a qualified accountant's letter that the firm can pay the difference (37-51-325(7); ARM 24.210.438). All policies must offer prior acts coverage to an insured with continuous past coverage, provide an automatic 60-day extended reporting period on cancellation or non-renewal for reasons other than non-payment, and offer an optional extended reporting period of not less than 365 days (37-51-325(3)). Proof is required at issue and renewal, and failing to maintain coverage is unprofessional conduct (37-51-325(8); 37-51-321(1)(w)).
Condominiums, landlord and tenant
Montana condominiums are governed by the Unit Ownership Act, Title 70, chapter 23 MCA, not by a uniform common interest ownership act. A unit may be conveyed, leased or encumbered independently (70-23-401), each owner has an undivided interest in the common elements in the percentage set by the declaration (70-23-403(1)), that percentage may be altered only if all owners with an interest agree and record an amendment (70-23-403(2)), and the undivided interest cannot be separated from the unit — it passes with the unit even where the conveyance does not mention it (70-23-404). The common elements remain undivided and any covenant permitting partition is void (70-23-405). Residential tenancies run under the Residential Landlord and Tenant Act of 1977 at Title 70, chapter 24: a landlord must give at least 24 hours' notice of intent to enter except in an emergency (70-24-312(3)(a)); rent unpaid when due carries a 3-day notice (70-24-422(2)); a month-to-month tenancy takes at least 30 days' written notice to terminate and a week-to-week tenancy 7 days (70-24-441). Security deposits are in a separate chapter, Title 70, chapter 25: the written list of damage and cleaning charges and any refund is due within 30 days of termination or surrender, or the deposit within 10 days where nothing is owed (70-25-202), and a landlord who fails to provide the list forfeits all rights to withhold for damage or cleaning (70-25-203). Violating chapters 24, 25 or 26 is unprofessional conduct for a licensee (ARM 24.210.641(1)(t), (u), (y)).
Foreclosure and redemption
Montana's Small Tract Financing Act, Title 71, chapter 1, part 3 MCA, allows a transfer in trust of an interest in real property of an area not exceeding 40 acres to secure an obligation, conferring a power of sale on the trustee (71-1-304(1), (2)). A statement in the trust indenture that the property does not exceed 40 acres is binding on all parties and conclusive as to compliance (71-1-304(4)). The beneficiary may foreclose by advertisement and sale under the part or, at its option, judicially as for a mortgage (71-1-304(3)). The trade-off defines the Act: a trustee's deed conveys to the purchaser 'without right of redemption' (71-1-318(3)), and in exchange no deficiency judgment may be taken against the grantor or the grantor's surety, guarantor or successor after a foreclosure by advertisement and sale (71-1-317). Recording the trustee's deed makes its recitals prima facie evidence of the matters set out, and conclusive evidence in favor of subsequent bona fide purchasers and encumbrancers for value without notice (71-1-318(2)).
Keep going: the full Montana Real Estate Broker guide covers every section of the exam. Montana Real Estate Broker Exam Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
State-specific details
State exam facts
- State regulator
- Montana Board of Realty Regulation (DLI)
- Exam vendor
- Pearson VUE
- Prelicensing education
- 60 hours of broker pre-license education, in addition to the salesperson hours
- Passing score
- Scaled score of 75 on each portion
- Scored questions
- 120
- Time limit
- 240 minutes
Who regulates real estate brokers in Montana?
The Montana Board of Realty Regulation, within the Department of Labor and Industry (DLI), licenses brokers and salespersons under Title 37, chapter 51 MCA. Pearson VUE delivers the licensing exams. Property managers are licensed separately by the department under Title 37, chapter 56 MCA, though a licensed broker may act as a property manager without that separate credential.
What experience do I need before the Montana broker exam?
A broker applicant must be at least 18, have a high school diploma or equivalent, and have been actively engaged as a licensed real estate salesperson for 2 years or have equivalent experience or special education as determined by the Board (37-51-302(2), MCA). The applicant must also furnish evidence of 60 classroom or equivalent hours beyond the salesperson requirement, completed within the 18 months before application, and show 30 points earned in the 36 months before application from transactions, qualifying degrees and designations, or brokerage supervision (ARM 24.210.611(9)).
How is the Montana broker exam structured?
Two separately scored portions delivered by Pearson VUE: a national broker portion of 80 scored items plus 5 pretest items in 150 minutes, and a Montana state portion of 40 scored items plus 10 pretest items in 90 minutes — 120 scored items and 240 minutes in total. A passing score of 75 is required on each portion, and you retake only the portion you fail.
Sources: https://boards.bsd.dli.mt.gov/realty-regulation/, https://www.pearsonvue.com/content/dam/VUE/vue/en/documents/publications/092700.pdf, https://www.pearsonvue.com/content/dam/VUE/vue/en/documents/publications/092701.pdf
In the Montana Real Estate Broker guide: A 60-question national practice exam, with a key that explains all four options and not just the right one. Practice here stays free.