Montana · contract for deed
Montana contract for deed, explained.
A plain-English guide to contract for deed (also called land contract) in Montana — statute, recording, default remedies, interest caps, and where deals actually happen.
Mont. Code Ann. § 70-20-115 (recording memoranda); Title 71 Ch. 1 (mortgages); common law for CFDs
Notice of Purchaser's Interest may be recorded with county Clerk and Recorder under Mont. Code Ann. § 70-20-302; recording is permitted, not mandated.
Hybrid. Montana courts have applied equitable mortgage doctrine to require foreclosure-like procedures when buyer has substantial equity. Forfeiture available per contract terms with reasonable notice; courts may impose cure period in equity.
Is contract for deed legal in Montana?
Montana recognizes 'contracts for deed' / 'notice of purchaser's interest' as common-law instruments for seller financing.
How do you record a contract for deed agreement in Montana?
Notice of Purchaser's Interest may be recorded with county Clerk and Recorder under Mont. Code Ann. § 70-20-302; recording is permitted, not mandated.
What happens if the buyer defaults?
Hybrid. Montana courts have applied equitable mortgage doctrine to require foreclosure-like procedures when buyer has substantial equity. Forfeiture available per contract terms with reasonable notice; courts may impose cure period in equity.
What is the maximum interest rate?
10% if no written agreement; written contracts up to 6% above New York Fed prime rate or 15%, whichever is greater (Mont. Code Ann. § 31-1-107); various exemptions.
What disclosures are required?
No statewide statutory residential property condition disclosure required (industry forms commonly used); lead-based paint (federal); noxious weed disclosure.
Who's protected — buyer vs. seller
Buyer protections
Equitable mortgage doctrine; recordable notice of interest; courts disfavor harsh forfeitures.
Seller protections
Forfeiture per contract terms generally enforceable absent substantial buyer equity; ejectment; retention of payments.
Where in the state do these deals happen?
Ranchland, farmland, recreational/hunting properties; rural residential; cabin sales.
Notable case law
Yellowstone County v. Wight, 115 Mont. 411 (1944); Kovacich v. Metals Bank & Trust Co., 159 Mont. 366 (1972).
Looking at a Montana deal?
Send the parcel and the terms — we'll walk through whether contract for deed fits, how to record it, and what the cure period looks like if things go sideways.
Talk to WyattEducational content only. Statute citations are public-record research, not legal advice. Montana contracts and remedies are fact-specific — consult a licensed Montana real-estate attorney before signing anything.