Brokerage Relationships in Montana
Montana defines working relationships and makes the non-agency 'statutory broker' the default. This chapter explains the statutory broker, the agency options, and the required relationship disclosure.
The Statutory Broker as Default
Montana recognizes the statutory broker: a licensee who assists a party in a transaction without acting as that party's agent. Unless a written agency agreement creates a seller-agent or buyer-agent relationship, the licensee is treated as a statutory broker. A statutory broker owes limited duties such as honesty, reasonable care, and disclosure of known adverse material facts, but not the loyalty and advocacy of an agent.
Seller Agent, Buyer Agent, and Dual Agent
By written agreement a licensee may become a seller agent or buyer agent, owing that client full agency duties including loyalty and confidentiality. A licensee who would represent both parties acts as a dual agent, which Montana permits only with the informed written consent of both parties. A dual agent cannot fully advocate for either side and must keep each party's confidential information from the other.
Required Relationship Disclosure
Montana requires the licensee to provide the relationships-in-real-estate disclosure at the first substantial contact with a party, before the party shares confidential information. The disclosure explains the statutory broker role and the agency options so the party can decide whether to be represented as a client. Early disclosure protects the party's negotiating information.