Real Estate Practice in Montana
Montana practice is shaped by trust-account rules, disclosure duties, and advertising standards. This chapter covers handling client money and the disclosures expected in a Montana transaction.
Trust Accounts and Earnest Money
Client funds such as earnest money must be handled through the supervising broker's trust (escrow) account. A salesperson who receives funds must deliver them promptly to the broker, who must keep trust money separate from personal and business funds. Commingling or converting trust money is among the most serious violations of Montana license law.
Disclosure of Adverse Material Facts
Whether acting as a statutory broker or an agent, a Montana licensee must disclose known adverse material facts about a property and must not help conceal defects. Sellers of residential property are generally expected to disclose the property's known condition. Honest, complete disclosure protects consumers and helps shield the licensee from later misrepresentation claims.
Advertising and Supervision
Advertising must be truthful and must properly identify the broker so the public is not misled about who is offering the property. The supervising broker is responsible for the advertising and conduct of the salespersons licensed under the broker. Following the license law, rules, and disclosure requirements is an ongoing condition of practice in Montana.