Montana · owner financing
Montana owner financing, explained.
A plain-English guide to owner financing (also called seller financing) 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 owner financing 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 owner financing 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 owner financing 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.