Montana Real Estate Salesperson Exam — All Questions

The principle of contribution states that the value of a component or improvement is measured by:

• a.The raw number of square feet of floor area or land area that the improvement happens to occupy
• b.The owner's personal emotional attachment to and sentimental feelings about that improvement
• c.Its original construction or installation cost in every case, dollar for dollar, with no exception
• d.How much it adds to the overall value of the property, not its cost✓

Under contribution, an improvement is worth the amount it adds to the whole property's market value, which may be more or less than its cost. This principle explains why some renovations do not fully return their expense, a key point in over-improvement analysis.

Under Internal Revenue Code Section 121, a qualifying homeowner may generally EXCLUDE from taxable capital gain:

• a.Up to $250,000 of gain if single, or $500,000 if married filing jointly✓
• b.Up to a full one million dollars of gain on any property at all, at any time and any frequency
• c.All gain on any and every investment or rental property the taxpayer happens to own and sell
• d.Absolutely nothing, because gain on the sale of a home is always fully and entirely taxable

Section 121 lets homeowners who owned and used the home as their principal residence for at least two of the prior five years exclude up to $250,000 of gain (single) or $500,000 (married filing jointly). It applies to a primary residence, not to investment property.

Depreciation recapture on the sale of investment real estate means that:

• a.All of the depreciation deductions previously claimed are simply refunded to the investor in cash
• b.The investor is legally required to physically restore and rebuild the depreciated building itself
• c.Gain from prior depreciation may be taxed, often at a special rate✓
• d.No income tax is ever owed at all on the sale of a property that has previously been depreciated

When depreciated property is sold at a gain, the portion of gain due to depreciation deductions is 'recaptured' and taxed under special rules, reflecting the earlier tax benefit. It is a tax concept, not a requirement to rebuild, and it increases, not eliminates, tax on sale.

Which appraisal approach is generally MOST reliable for a special-purpose property, such as a church or public school, that rarely sells and earns no market income?

• a.The sales comparison approach, which depends on recent sales of similar comparable properties
• b.The income approach, which converts a property's market rental income into an indicated value
• c.The gross rent multiplier method, which relies on typical market rents that these lack entirely
• d.The cost approach✓

Special-purpose properties have few or no comparable sales and generate no market rent, so the cost approach (replacement cost new, less depreciation, plus land) is typically most reliable. Sales comparison lacks comparables and the income/GRM methods need market income these properties do not produce.

The four characteristics an item must have to possess value in the market, often remembered as DUST, are:

• a.Debt, Utility, Supply, and Taxes, a mix of unrelated financing and cost terms rather than value
• b.Demand, Utility, Scarcity, and Transferability✓
• c.Depreciation, Use, Sale, and Title, which describe stages of ownership rather than value itself
• d.Demand, Ownership, Scarcity, and Time, which swaps in two terms that are not part of the concept

For something to have market value it must have Demand (buyers who want it), Utility (usefulness), Scarcity (limited supply), and Transferability (the ability to convey it). The DUST acronym captures these four essentials of value.

Which body licenses and regulates real estate salespersons and brokers in Montana?

• a.The Montana Department of Revenue
• b.The Montana Association of Realtors
• c.The county clerk and recorder
• d.The Montana Board of Realty Regulation✓

Real estate licensing in Montana is administered by the Board of Realty Regulation, which operates within the Department of Labor and Industry under the state's real estate license law (Title 37, Chapter 51). The Board issues, renews, and disciplines licenses and adopts rules. A trade association such as the Montana Association of Realtors is a private group with no licensing authority.

In Montana, a salesperson may perform licensed real estate activity only when:

• a.Licensed under and supervised by a licensed broker✓
• b.Registered with the county treasurer
• c.Operating independently once licensed
• d.Approved individually by the Board for each sale

A Montana salesperson's license is valid only while the salesperson is licensed under and supervised by a licensed broker. Licensed activity is conducted for the supervising broker, who is responsible for supervision and trust funds. A salesperson may not accept compensation directly from a consumer; commissions flow through the supervising broker.

The Montana Board of Realty Regulation may discipline a licensee for which of the following?

• a.Referring a client to a licensed inspector
• b.Commingling client trust funds with the broker's personal funds✓
• c.Belonging to a professional association
• d.Advertising a listing with the owner's consent

Commingling or converting client trust money is a serious violation of Montana license law and a common basis for discipline, along with fraud, misrepresentation, and dishonest dealing. The Board may reprimand, fine, suspend, or revoke a license after due process. Authorized advertising, ordinary referrals, and association membership are not violations.

Under Montana law, which relationship is a licensee presumed to have with a party unless the licensee and that party enter a written agency agreement?

• a.Statutory broker (a non-agent who assists without representing the party)✓
• b.Dual agent
• c.Seller agent
• d.Buyer agent

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 who owes limited duties such as honesty, disclosure of known adverse material facts, and reasonable care, but not the loyalty of an agent.

How does a Montana statutory broker differ from a seller agent or buyer agent?

• a.A statutory broker may never be paid a commission
• b.A statutory broker assists a party without representing that party as an agent and owes no duty of loyalty✓
• c.A statutory broker can only handle commercial leases
• d.A statutory broker owes full fiduciary loyalty to both parties

A seller agent or buyer agent represents a client with full agency duties, including loyalty and confidentiality. A statutory broker assists a party in the transaction without becoming that party's agent and owes no duty of loyalty, though the statutory broker must still be honest, exercise reasonable care, and disclose known adverse material facts about the property.

When must a Montana licensee provide a buyer or seller with the required disclosure describing the available brokerage relationships?

• a.At the first substantial contact, before the party discloses confidential information✓
• b.Only after a buy-sell agreement is signed
• c.Only at closing
• d.Only when the party asks for it in writing

Montana requires the licensee to provide the relationships-in-real-estate disclosure to a party at the first substantial contact, before the party shares confidential information. Early disclosure lets a buyer or seller understand whether the licensee is acting as a statutory broker or as an agent for a party before negotiating information is revealed.

When a Montana salesperson receives an earnest-money deposit, the funds must be:

• a.Delivered promptly to the supervising broker to be held in the broker's trust account✓
• b.Held in cash by the salesperson until closing
• c.Deposited into the salesperson's personal account
• d.Sent directly to the Board of Realty Regulation

Earnest money and other client funds 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. Mishandling trust money is one of the most serious violations of Montana license law.

Which best describes how a person becomes a licensed salesperson in Montana?

• a.No coursework is required if supervised
• b.Passing one exam grants a broker license for life
• c.Complete the required pre-license education, pass the licensing exam, and be licensed under a supervising broker, with continuing education required to renew✓
• d.Join a Realtor board to receive an automatic license

A Montana candidate must complete the required salesperson pre-license education, pass the licensing examination, and become licensed under a supervising broker to be active. Salespersons must also complete continuing education, including any required newly-licensed coursework, to renew. Advancing to a broker license requires additional education and experience.

A Montana statutory broker learns the roof leaks badly. What must the statutory broker do?

• a.Keep the defect confidential, since the broker represents no party
• b.Inspect the roof and verify the seller's statements before saying so
• c.Disclose it only after the seller gives written permission to do so
• d.Disclose the adverse material fact to the buyer or the buyer agent✓

A Montana statutory broker is not the agent of either party, but is still obligated to disclose to a buyer or buyer agent any adverse material facts about the property that the statutory broker knows. The same subsection adds that the statutory broker need not inspect the property or verify the seller's statements. Cite: Mont. Code Ann. 37-51-313(6)(a)(i).

A Montana seller agent wants to list a second property that competes with a current client's listing. The agent may do so:

• a.freely, because a seller agent owes no loyalty duty under Montana law
• b.after written disclosure to the seller and the seller's written consent✓
• c.never, since the agent must act solely in the first seller's interest
• d.only if the competing listing lies in a different Montana county and city

Montana's seller agent must act solely in the seller's best interests, but the statute carves out competing listings: the agent may represent multiple sellers or list competing property after written disclosure to the seller and with the seller's written consent. Cite: Mont. Code Ann. 37-51-313(2)(a).

Compared with a Montana seller agent, a Montana dual agent must:

• a.stop disclosing adverse material facts once both consents are signed
• b.disclose adverse material facts to the buyer but not to the seller
• c.withhold adverse material facts a client has marked confidential
• d.disclose known adverse material facts despite confidentiality✓

A dual agent owes the seller what a seller agent owes and the buyer what a buyer agent owes, with one override: the dual agent has a duty to disclose to either party any adverse material facts the dual agent knows, regardless of confidentiality considerations. Cite: Mont. Code Ann. 37-51-313(7).

Without written consent, a Montana dual agent may NOT tell the seller that:

• a.the buyer intends to order a professional inspection of the roof
• b.the buyer has asked to see three other listings in the same town
• c.the buyer is willing to pay more than the offered purchase price✓
• d.the buyer has been preapproved by a Montana lending institution

Montana lists four items a dual agent may not reveal without the written consent of the person to whom they are confidential: that the buyer would pay more, that the seller would take less, either party's motivation, and anything a party marks confidential in writing. Cite: Mont. Code Ann. 37-51-313(8).

Before performing the acts of a Montana buyer agent or seller agent, a licensee must:

• a.obtain a written buyer broker agreement or written listing agreement✓
• b.complete a board-approved agency course within the prior 12 months
• c.file a copy of the agreement with the Board of Realty Regulation
• d.record notice of the relationship with the county clerk and recorder

Montana requires the written agreement first. A licensee who acts as a buyer agent or seller agent without one is still bound by all of the chapter's duties, so skipping the paperwork removes the authority, not the liability. Cite: Mont. Code Ann. 37-51-313(10).

A Montana statutory broker's relationship with the parties continues until:

• a.either party mails the broker a written notice of termination
• b.the broker's current Montana license period comes to an end
• c.the transaction giving rise to it is completed or terminated✓
• d.the expiration date written into the parties' listing agreement

Montana sets a different end point for a statutory broker than for an agent. An agency relationship ends at performance, the agreed expiration date, or an authorized termination; a statutory broker's relationship runs until the transaction that gave rise to it is completed, terminated, or abandoned. Cite: Mont. Code Ann. 37-51-313(11)(b).

After a Montana agency relationship ends, the licensee still owes the former principal a duty to:

• a.act solely in the principal's interest in that party's next purchase too
• b.keep marketing the principal's property until a buyer is found
• c.obey the principal's lawful instructions for one more full year
• d.account for the principal's money and property and keep confidences✓

On termination a Montana broker or salesperson has no further duties to the principal except to account for all money and property and to keep confidential the information the principal directed be kept confidential, subject to listed exceptions such as disclosure required by law. Cite: Mont. Code Ann. 37-51-313(12).

What does a Montana buyer agent owe the seller?

• a.a duty to obey the seller's lawful instructions in negotiations
• b.a duty to safeguard the seller's confidences after the closing
• c.disclosure of known facts about the buyer's ability to perform✓
• d.no duty at all, since the buyer agent acts solely for the buyer

Montana's buyer agent owes the seller disclosure of any adverse material facts the agent knows about the buyer's ability to perform on a purchase offer, a statement when the agent has no personal knowledge of the truth of such facts, and good faith dealing. Cite: Mont. Code Ann. 37-51-313(5).

When must a Montana statutory broker give the buyer the initial relationship disclosure?

• a.within 10 days after the buyer signs a written purchase offer
• b.at the time the seller accepts the buyer's written purchase offer
• c.at the closing table, just before the buyer's funds are disbursed
• d.when the broker first endeavors to locate property for the buyer✓

Montana pegs each disclosure to a different trigger. For a statutory broker the initial disclosure goes to the buyer when the statutory broker first endeavors to locate property for that buyer; the subsequent disclosure goes to the seller side when negotiations commence. Cite: Mont. Code Ann. 37-51-314(4)(a).

A Montana buyer agent must give the seller or seller agent the subsequent relationship disclosure:

• a.before the listing is entered in a multiple listing service
• b.only when the seller has no agent of the seller's own
• c.at the time negotiations with the seller side commence✓
• d.within 5 business days after the seller accepts the offer

Montana's subsequent disclosure is tied to negotiations, not to contract. A buyer agent makes it to the seller or seller agent at the time negotiations commence; a seller agent makes the mirror-image disclosure to the buyer or buyer agent at the same point. Cite: Mont. Code Ann. 37-51-314(3)(c).

A Montana seller agent who is about to become a dual agent must get the parties' consent:

• a.prior to or at the time the dual agency relationship arises✓
• b.within 3 business days after the dual agency has arisen
• c.at closing, in a rider to the parties' settlement statement
• d.only when the buyer requests the consent form in writing

Montana requires the licensee who contemplates or enters dual agency to disclose the potential or actual relationship to both buyer and seller and to receive their consent prior to or at the time the dual agency arises. Cite: Mont. Code Ann. 37-51-314(5).

Montana's initial relationship disclosure must contain, among other items:

• a.the licensee's board file number and the firm's bond amount
• b.a definition of 'adverse material fact' and the party's signature✓
• c.the commission rate the broker will charge the seller at closing time
• d.a copy of the brokerage firm's written office policy manual

The initial disclosure must describe the duties in 37-51-313, carry the statutory all-capitals dual agency paragraph, define adverse material fact, identify the relationship disclosed, and be signed by the buyer or seller and by the licensee and dated. Cite: Mont. Code Ann. 37-51-314(6).

When a Montana licensee is acting only as a property manager, the relationship disclosure rule is that:

• a.disclosing the contractual relationship is a sufficient disclosure✓
• b.no disclosure of any kind is owed to the owners or tenants
• c.the same initial and subsequent sale forms must still be used
• d.a fresh disclosure form is needed before every tenant showing

A Montana licensee managing property must disclose the contractual relationship to all customers and clients. When the licensee is acting only as a property manager, no separate relationship disclosure is required and that contractual-relationship disclosure is treated as sufficient. Cite: Mont. Code Ann. 37-51-314(8), (9).

How do Montana's statutory brokerage duties relate to common-law agency?

• a.they bind brokers but leave salespersons under the common law
• b.they supplement common law, which controls if the two conflict
• c.they are intended to replace the common law in these relationships✓
• d.they apply only when the parties have signed no written agreement

Montana's chapter says outright that its duties govern broker and salesperson relationships with buyers and sellers and are intended to replace both the agency duties found elsewhere in state law and the common law as applied to these relationships. Cite: Mont. Code Ann. 37-51-313(1).

A Montana seller is liable for a misrepresentation made by the seller's agent when:

• a.the misrepresentation concerned the property's condition
• b.the agent acted within the scope of the listing agreement
• c.the buyer relied on the statement to the buyer's detriment
• d.the seller had actual knowledge of the misrepresentation✓

Montana's vicarious liability statute cuts off automatic liability: a party is not liable for an agent's or subagent's misrepresentation unless the party had actual knowledge of it, or the agent was repeating a misrepresentation the party had made. Cite: Mont. Code Ann. 37-51-315(1).

A Montana broker is liable for a subagent's misrepresentation if:

• a.the subagent is the broker's own employee✓
• b.the subagent's error was discovered before the closing
• c.the subagent is licensed with a different brokerage firm
• d.the broker ratifies the sale by accepting a commission

A Montana broker escapes liability for a subagent's misrepresentation unless the broker had actual knowledge of it, the subagent is the broker's employee rather than an independent contractor, or the statement repeats one the broker made. Cite: Mont. Code Ann. 37-51-315(2).

Montana law requires a broker or salesperson holding an active license to:

• a.post a $25,000 surety bond with the department each year
• b.pay $2,500 into the state real estate recovery account
• c.maintain continuous professional liability (E&O) coverage✓
• d.carry a general liability policy naming the board insured

Montana requires continuous professional liability coverage for the whole period of active licensure, obtainable through the board-approved group policy, independently, or through the affiliated firm. The real estate recovery account was repealed effective February 1, 2021. Cite: Mont. Code Ann. 37-51-325(1), (2).

Montana's minimum limits for an independently issued licensee errors and omissions policy are:

• a.$100,000 per claim and $300,000 annual aggregate✓
• b.$50,000 per claim and $100,000 annual aggregate
• c.$250,000 per claim and $500,000 annual aggregate
• d.$100,000 per claim and $1 million annual aggregate

An individually purchased Montana policy must carry at least a $100,000 per-claim limit, a $300,000 annual aggregate, and a deductible no greater than $2,500 per claim. A policy issued to the firm instead carries a $1 million aggregate. Cite: Mont. Code Ann. 37-51-325(6), (7).

A Montana broker who operates under a national franchise name must:

• a.print the franchisor's corporate headquarters address in each advertisement
• b.obtain the board's written approval of the franchise agreement
• c.work the broker's own name or trade name into the franchise name✓
• d.advertise only under the franchisor's nationally registered name

Montana treats franchise advertising that omits the local identity as misleading advertising and therefore unprofessional conduct: the broker must incorporate the broker's own name, or the trade name the office is known by, into the franchise name or logotype. Cite: Mont. Code Ann. 37-51-321(1)(a).

Using the term 'realtor' when not entitled to do so is, under Montana license law:

• a.grounds for a contractual fine payable to the franchise owner
• b.unprofessional conduct the board may sanction the license for✓
• c.permitted whenever the licensee belongs to any trade association
• d.a civil infraction that the county attorney prosecutes locally

Montana names it directly: using the term realtor without authority, or using another trade name or insignia of membership in an organization the licensee does not belong to, is unprofessional conduct subject to license sanction. Cite: Mont. Code Ann. 37-51-321(1)(d).

A Montana salesperson takes a buyer's earnest money check. The salesperson must:

• a.deposit it in the salesperson's own account within 24 hours
• b.place it with the supervising broker as soon as practicable✓
• c.hold it until the seller has accepted the offer in writing
• d.endorse it to the closing agent and notify the state board

Montana makes it unprofessional conduct for a salesperson to fail to place deposit money or other entrusted money in the custody of the supervising broker as soon after receipt as is practicably possible, with an exception for the salesperson's own personal transaction. Cite: Mont. Code Ann. 37-51-321(1)(r).

Montana makes it unlawful to advertise property belonging to others unless:

• a.the owner has orally authorized that particular advertisement
• b.a signed listing agreement is valid on the ad's date✓
• c.the property is also being advertised by a listing service
• d.the ad names the Montana county where the property lies

Montana requires a signed listing agreement from the owner that is valid on the date the advertisement runs. The statute separately allows a broker to include properties listed by other brokers who will cooperate on the sale. Cite: Mont. Code Ann. 37-51-321(2).

Paying a commission on a Montana sale to someone who holds no Montana license is:

• a.a felony that the Montana Department of Justice prosecutes
• b.permitted when the supervising broker approves it in writing
• c.permitted whenever the recipient resides outside of Montana
• d.unprofessional conduct unless the statute exempts the payment✓

Montana lists paying a commission in connection with a real estate sale or transaction to a person not licensed as a Montana broker or salesperson, unless exempted, among the practices that constitute unprofessional conduct. Cite: Mont. Code Ann. 37-51-321(1)(p).

What follows when a Montana licensee lets required professional liability coverage lapse?

• a.the license converts automatically to inactive status that day
• b.the lapse is itself unprofessional conduct under the license law✓
• c.the board assesses a daily citation fine until the coverage is restored
• d.nothing happens, because the coverage is voluntary in Montana

Montana added failure to maintain continuous professional liability insurance meeting 37-51-325 to the statutory list of unprofessional conduct, and a licensee who cannot produce proof of coverage on request also faces administrative suspension. Cite: Mont. Code Ann. 37-51-321(1)(w); 37-51-325(8).

An unlicensed person who negotiated a Montana sale sues for the commission. The court will:

• a.award the fee to the plaintiff on a quantum meruit theory
• b.cut the fee in half and impose a statutory penalty
• c.send the fee claim to the Board of Realty Regulation
• d.refuse it, since the plaintiff cannot prove licensure✓

Montana bars the courthouse door: no person acting as a broker or salesperson may bring or maintain an action to collect compensation without first alleging and proving that the person was duly licensed when the claim arose. Cite: Mont. Code Ann. 37-51-401.

A Montana licensee's duty about sexual or violent offender registration information is limited to:

• a.handing the buyer a printed registry report at the closing
• b.searching the state offender registry before every showing
• c.warning buyers of any registrant living within a mile of it
• d.saying the information may be kept, and what the licensee knows✓

Montana caps this duty by statute. The licensee must disclose that registration information may be maintained and by whom, and must disclose any actual knowledge the licensee has of registration information pertaining to the property. Cite: Mont. Code Ann. 37-51-105.

A Montana broker who moves the brokerage office must notify the department:

• a.before the move or within 10 days after, with the new address✓
• b.within 30 days after the move, by certified mail to the board in Helena
• c.only when the move crosses into a different Montana county
• d.at the broker's next scheduled license renewal deadline

A Montana broker keeps a designated physical address with the license displayed there. On removal from that address the broker notifies the department before the move or within 10 days after it, designating the new physical address and paying the required fee. Cite: Mont. Code Ann. 37-51-308(1), (3).

Montana law on a salesperson's supervision provides that a salesperson:

• a.chooses a supervising broker only when handling trust funds
• b.may be under contract to only one supervising broker at a time✓
• c.may work for two supervising brokers in two different cities
• d.may serve any broker who pays the salesperson a referral fee

A Montana salesperson may not be associated with, be under contract to, or perform services for more than one supervising broker, except on the temporary basis the statute and board rule allow. Only one salesperson license is in effect at a time. Cite: Mont. Code Ann. 37-51-309(1), (5).

A Montana salesperson leaves a firm with no new supervising broker lined up. That license:

• a.transfers automatically to the firm's next most senior broker
• b.is revoked and must be earned again by passing the state exam
• c.stays active for a 30-day grace period after the departure
• d.goes on inactive status automatically, with no fee charged✓

When a Montana salesperson leaves a supervising broker without a successor who has accepted supervision, the salesperson notifies the department promptly in writing and the license is automatically placed on inactive status. No fee may be charged, and the salesperson may not practice while inactive. Cite: Mont. Code Ann. 37-51-309(3).

Before a Montana salesperson sells property the salesperson owns, the salesperson must:

• a.list the property with the supervising broker's own firm
• b.notify the Board of Realty Regulation of it in writing
• c.get the supervising broker's written approval of the price
• d.disclose in writing that this is a for-sale-by-owner deal✓

Montana lets a salesperson handle for-sale-by-owner personal transactions outside the firm, but the salesperson must first disclose in writing to the other party that the deal is a personal transaction not involving the supervising broker or firm. Cite: Mont. Code Ann. 37-51-309(6)(c).

Under the Montana board's trust account rule, money belonging to others must be deposited:

• a.within five business days after the offer is accepted
• b.before the end of the next banking day after receipt
• c.within three business days, unless the parties agree✓
• d.within 72 hours of the broker's receipt of the funds

The trust account rule the Board of Realty Regulation adopted effective February 21, 2026 gives brokers three business days to deposit monies belonging to others, unless the parties agree otherwise. It replaced the repealed rule on trust account requirements. Cite: Mont. Admin. R. 24.210.427(4)(d).

How much of a Montana broker's own money may sit in the trust account?

• a.up to $1,000, counting interest accrued to the broker✓
• b.none at all, because any personal funds are commingling
• c.any amount, so long as the records identify it clearly
• d.up to $5,000, to cover the trust account's bank charges

Montana's rule permits a broker to deposit and hold up to $1,000 of personal funds, including interest accrued to the broker, and to use those funds for trust account bank charges, related maintenance expenses, and money due and payable to the broker. Cite: Mont. Admin. R. 24.210.427(6).

Money in a Montana trust account that has become due and payable to the broker must be withdrawn:

• a.only after the client signs a written release of it
• b.within ten business days once it is due and payable✓
• c.within 30 days after the transaction has finally closed
• d.at the time of the next monthly account reconciliation

Montana's trust account rule sets an outside limit on how long the broker's own earned money may stay in the account: money due the broker must be withdrawn within ten business days once it is due and payable. Cite: Mont. Admin. R. 24.210.427(6)(b).

The Montana trust account rule requires the account to be:

• a.insured in a Montana institution and reconciled monthly✓
• b.held in a federally chartered bank outside the state
• c.audited each year by an independent public accountant
• d.reconciled quarterly and reported to the board yearly

Montana requires trust accounts to be liquid, readily accessible, insured in Montana financial institutions, identified as trust accounts, and reconciled each month that has activity. Cite: Mont. Admin. R. 24.210.427(2).

Which handling of Montana trust funds does the board's rule forbid?

• a.an interest-bearing account with the interest paid to the depositing client
• b.maintaining more than one separately identified trust account
• c.placing the funds in a sweep account or a certificate of deposit✓
• d.delegating the account's maintenance to another licensed broker

Montana bars trust funds from sweep accounts and from investment in certificates of deposit, repurchase agreements, or any other method that puts the funds at risk. Interest-bearing accounts, multiple accounts, and delegation to another licensed broker are all allowed. Cite: Mont. Admin. R. 24.210.427(3), (4), (5).

When may a Montana broker take part of the earnest money as commission?

• a.as soon as the seller accepts the buyer's offer in writing
• b.whenever the listing says the deposit is nonrefundable
• c.after the transaction closes or is terminated✓
• d.at any point, if the money moves to the operating account

Montana's rule says a broker is not entitled to any earnest money or other money paid in connection with a transaction as part or all of the commission until the transaction has been closed or terminated, and any split of forfeited earnest money with the seller must rest on a written agreement. Cite: Mont. Admin. R. 24.210.427(11).

A Montana salesperson negotiates a listing agreement. Under the board's supervision rule it is not valid until:

• a.the board issues a listing registration number for it
• b.the seller delivers a completed property condition sheet
• c.the supervising broker has reviewed, signed, and dated it✓
• d.it is entered into an approved multiple listing service

The salesperson supervision rule adopted effective February 21, 2026 provides that a listing agreement negotiated by a salesperson is not valid until it is reviewed, signed, and dated by the supervising broker. Cite: Mont. Admin. R. 24.210.607(3).