Contract for Deed (Land Contract) - Montana

CONTRACT FOR DEED — MONTANA

SELLER-FINANCED INSTALLMENT SALE

ELIGIBILITY AND COMPLIANCE GATE

Before using this agreement, counsel must classify the transaction and complete every applicable disclosure and underwriting requirement.

Do not treat this form as a consumer-credit compliance package, foreclosure form, or substitute for required disclosures.

1. PARTIES AND DATE

This Contract for Deed (the "Contract") is made on [DATE] between:

Seller: [FULL LEGAL NAME], [MARITAL STATUS OR ENTITY TYPE], whose mailing address is [ADDRESS] ("Seller").

Buyer: [FULL LEGAL NAME], [MARITAL STATUS OR ENTITY TYPE], whose mailing address is [ADDRESS] ("Buyer").

2. PROPERTY

Seller agrees to sell and Buyer agrees to purchase the real property situated in [COUNTY] County, Montana, described in Exhibit A, together with the items expressly included below (the "Property").

Street address: [________________________________]

Geocode / parcel number: [________________________________]

Included improvements, fixtures, appurtenant rights, water or mineral interests, and personal property: [________________________________]

Excluded or reserved interests: [________________________________]

3. PURCHASE PRICE AND PAYMENT

The final amortization schedule is attached as Exhibit B. The Note, if a separate Note is used, must match this Contract exactly.

Payments are applied as follows, subject to controlling law and the final loan disclosures: [________________________________].

4. TITLE, POSSESSION, AND FINAL DEED

4.1 Record Title. Seller will retain record title as security until Buyer fully performs the payment and other conditions identified for deed delivery.

4.2 Possession. Buyer receives possession on [DATE], subject to the tenancies, occupancies, and possession terms listed in Exhibit C.

4.3 Final Conveyance. After full performance, Seller shall execute and deliver a:

☐ General Warranty Deed

☐ Special Warranty Deed

☐ Quitclaim Deed

☐ Other counsel-approved instrument: [________________________________]

The deed will convey the agreed estate subject only to the accepted title matters in Exhibit C and interests created or approved by Buyer.

4.4 Escrow. The parties [☐ will / ☐ will not] place the executed deed, Contract, payment records, or other closing items with [ESCROW / COLLECTION AGENT] under separate written instructions.

4.5 Water rights. Seller and Buyer identify the water rights, if any, that are appurtenant to the Property and on record with the Montana Department of Natural Resources and Conservation (DNRC): [RIGHT NUMBERS OR "NONE": ________________________________]. The rights to transfer with the Property are [________________________________]; any rights to be reserved, severed, divided, or exempted are [________________________________].

WATER RIGHT OWNERSHIP UPDATE DISCLOSURE (applies if appurtenant water rights are on record with DNRC): By Montana law, failure of the parties at closing or transfer of real property to pay the required fee to the Montana Department of Natural Resources and Conservation for updating water right ownership may result in the transferee of the property being subject to a penalty. Additionally, in the case of water rights being exempted, severed, or divided, the failure of the parties to comply with section 85-2-424, MCA, could result in a penalty against the transferee and rejection of the deed for recording.

At closing or transfer, Seller and Buyer shall complete the water-right disclosure on the realty transfer certificate when § 85-2-424(1) applies. They shall determine whether DNRC will update ownership from Department of Revenue information or whether a water-right ownership update form and fee must be submitted under § 85-2-424(2)–(5). If the certificate submitted with a deed or other instrument indicates a right is transferred, severed, divided, or exempted, the parties shall provide the signed DNRC certification required by § 85-2-424(6) with the recording package.

5. TITLE AND SENIOR LIENS

Seller shall provide [TITLE COMMITMENT / POLICY / ABSTRACT / OTHER] by [DATE]. Buyer shall object to a title matter by [DATE], and Seller shall respond under the procedure stated in Exhibit C.

Existing mortgage, trust indenture, lien, or contract: [________________________________]

If a senior real-property loan exists, the parties must obtain a payoff, assumption approval, subordination, or written lender consent acceptable to counsel before relying on this Contract. Under 12 U.S.C. § 1701j-3, federal law generally permits enforcement of contractual due-on-sale clauses, subject to the statute's terms and specified exemptions. Do not assume an installment sale is exempt.

6. POSSESSION-PERIOD OBLIGATIONS

Beginning [DATE], Buyer shall, as the parties and counsel allocate below:

1. Pay property taxes and assessments: [________________________________].
2. Maintain property and liability insurance, with the following insureds and loss-payee terms: [________________________________].
3. Maintain the Property and avoid waste: [________________________________].
4. Pay utilities, association charges, lease obligations, and other carrying costs: [________________________________].
5. Permit reasonable inspection on the following notice and conditions: [________________________________].
6. Obtain consent before specified alterations, leases, assignments, liens, or transfers: [________________________________].

If a party advances a sum the other was required to pay, the reimbursement, interest, notice, and proof terms are: [________________________________].

7. CASUALTY, CONDEMNATION, AND INSURANCE PROCEEDS

Risk of loss, restoration duties, insurance proceeds, condemnation awards, purchase-price adjustments, and termination rights are allocated as follows: [________________________________].

Do not rely on a generic “Buyer bears all risk on possession” sentence without reconciling the insurance, title, casualty, and deed-delivery structure.

8. DEFAULT, NOTICE, AND CURE

An event of default occurs only as expressly stated here and subject to controlling law:

1. Failure to make a required payment: [________________________________].
2. Material breach of a nonpayment covenant: [________________________________].
3. Material waste, unauthorized transfer, or title impairment: [________________________________].
4. Other counsel-approved default: [________________________________].

Before seeking a remedy, the nondefaulting party must deliver a written notice describing the default, the action required to cure, the amount claimed, supporting records, and the contractual cure deadline.

Monetary cure period: [____] days after legally effective notice.

Nonmonetary cure period and reasonable-extension rule: [________________________________].

Notice methods and addresses: [________________________________].

Do not use bankruptcy status alone as a default without bankruptcy counsel's review.

9. FORFEITURE RELIEF AND REMEDIES

Mont. Code Ann. § 28-1-104 provides that when an obligation's terms impose a forfeiture or loss in the nature of a forfeiture for noncompliance, the party may be relieved upon making full compensation to the other party, except in the case of a grossly negligent, willful, or fraudulent breach of duty.

Accordingly, this Contract does not declare that Seller automatically may retain all payments, cancel Buyer's interest, recover possession, accelerate, obtain a deficiency, or conduct a sale merely because a contractual cure period expired. After a default, Montana counsel must select and implement the remedy supported by the Contract, the parties' performance, the amount paid, the nature of the breach, § 28-1-104, current case law, and all procedural protections.

The parties agree that no remedy provision waives relief or protection that cannot lawfully be waived.

10. RECORDING AND STATUTORY NOTICE RIGHT

The parties direct [SELLER / BUYER / ESCROW AGENT] to record [THIS CONTRACT / A COUNSEL-APPROVED ABSTRACT] in every Montana county where any part of the Property lies by [DATE].

Mont. Code Ann. § 70-20-115 defines a “purchaser under contract for deed” to include a person who contracts with the record owner for later deed delivery after conditions such as payment and records the contract or an abstract under Title 70, chapter 21. A qualifying recorded assignee or successor is also included. When a statute requires legal notice to the real-property owner, the same notice must be given to that purchaser.

Section 70-20-115 does not create a general default notice, cure period, forfeiture procedure, or foreclosure remedy. Its protection depends on recording.

An unrecorded instrument is valid between the parties and persons with notice under Mont. Code Ann. § 70-21-102, but proper recording supplies constructive notice and affects priority under §§ 70-21-302 and 70-21-304.

Execution must be acknowledged or proved for recording as § 70-21-203 provides, and the instrument must be recorded in the county where the Property lies under § 70-21-208. Under § 15-7-305(4), the clerk and recorder prepares a realty transfer certificate for each contract for deed filed for recording.

11. RADON AND LEAD DISCLOSURES

For inhabitable real property, Seller or Seller's agent shall give Buyer the Montana radon statement in Exhibit E before or when an offer is made, and Buyer shall acknowledge receipt by signing a copy. If Seller knows the building was tested for radon gas or radon progeny, Seller shall provide available test results and evidence of subsequent mitigation or treatment before or upon entry into this Contract. Mont. Code Ann. § 75-3-606(1)-(2).

Lead-based paint

If the sale involves target housing, complete the federal lead disclosure before Buyer becomes obligated. Under 42 U.S.C. § 4852d, the required process includes the lead-hazard pamphlet, disclosure of known lead-based paint or hazards and available evaluation reports, the purchaser's inspection opportunity, and the required Lead Warning Statement and signed purchaser acknowledgments in the sale contract.

☐ Not target housing; counsel states why: [________________________________]

☐ Compliant disclosure attached as Exhibit D and incorporated into this Contract.

12. ASSIGNMENT AND TRANSFER

Buyer assignment, Seller assignment of payment rights, delegation, assumption, release, and notice terms are: [________________________________].

13. GENERAL TERMS

Governing law: Montana law, subject to controlling federal law.

Amendments: A signed writing identifying this Contract and the provision changed.

Notices: [________________________________]

Severability: If a provision is unenforceable, the remaining provisions continue to the extent they can operate consistently with the transaction.

Counterparts and electronic process: [COUNSEL TO CONFIRM THE SIGNATURE, NOTARIZATION, AND COUNTY RECORDING METHOD BEFORE USE].

14. SIGNATURES

Seller

Signature: ____________________________________

Printed name: [________________________________]

Date: [________________________________]

Buyer

Signature: ____________________________________

Printed name: [________________________________]

Date: [________________________________]

15. NOTARIAL ACKNOWLEDGMENTS

Use a separate certificate for each required signer and the certificate appropriate to individual or representative capacity. The individual short form below tracks Mont. Code Ann. § 1-5-610(1).

State of [________________]

County of [________________]

This record was acknowledged before me on [DATE] by [NAME(S) OF INDIVIDUAL(S)].

Signature of notarial officer: ______________________________

Printed name and title: [___________________________________]

[OFFICIAL STAMP]

EXHIBITS

Exhibit A — Legal Description

[FULL LEGAL DESCRIPTION]

Exhibit B — Payment and Amortization Schedule

[ATTACH FINAL SCHEDULE]

Exhibit C — Title, Possession, and Permitted Exceptions

[ATTACH FINAL TERMS]

Exhibit D — Federal Lead Disclosure, If Applicable

Property: [________________________________________________]

LEAD WARNING STATEMENT

Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller's possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase.

Seller disclosure: ☐ Seller knows of lead-based paint or lead-based-paint hazards: [DESCRIBE BASIS, LOCATION, AND CONDITION: ________________________________] ☐ Seller has no knowledge of lead-based paint or lead-based-paint hazards.

Records and reports provided to Buyer: [LIST EACH AVAILABLE LEAD-HAZARD RECORD OR REPORT PROVIDED: ________________________________] ☐ Seller has no such records or reports available.

Buyer acknowledgment: By signing below, Buyer acknowledges receipt of Seller's disclosure and the records or reports listed above, and receipt of the federally approved lead-hazard information pamphlet. Buyer also states that Buyer has read the Lead Warning Statement and understands its contents.

Inspection opportunity: Buyer ☐ received a 10-day opportunity to conduct a lead risk assessment or inspection before becoming obligated under this Contract; ☐ received a different period mutually agreed in writing: [____] days; or ☐ waives that opportunity.

Seller's agent certification, if an agent is involved: I informed Seller of Seller's obligations under 42 U.S.C. § 4852d and am aware of my duty to ensure compliance with the federal lead-disclosure requirements.

Agent name (repeat for each involved agent): [________________________________] Agent signature: [________________________________] Date: [__/__/____]

By signing, Seller, any involved agent, and Buyer certify the accuracy of their statements to the best of their knowledge.

Seller signature (repeat for each seller): [________________________________] Date: [__/__/____]

Buyer signature (repeat for each purchaser): [________________________________] Date: [__/__/____]

Seller and any involved agent must retain a copy of the completed attachment for at least three years from completion of the sale under 40 C.F.R. § 745.113(c)(1).

Exhibit E — Montana Radon Disclosure and Prior Testing

RADON GAS: RADON IS A NATURALLY OCCURRING RADIOACTIVE GAS THAT, WHEN IT HAS ACCUMULATED IN A BUILDING IN SUFFICIENT QUANTITIES, MAY PRESENT HEALTH RISKS TO PERSONS WHO ARE EXPOSED TO IT OVER TIME. LEVELS OF RADON THAT EXCEED FEDERAL GUIDELINES HAVE BEEN FOUND IN BUILDINGS IN MONTANA. ADDITIONAL INFORMATION REGARDING RADON AND RADON TESTING MAY BE OBTAINED FROM YOUR COUNTY OR STATE PUBLIC HEALTH UNIT.

Seller's knowledge of prior radon testing: ☐ No testing known ☐ Testing known; date and location: [________________].

Available test results furnished to Buyer: [ATTACH OR IDENTIFY: ________________________________]. Evidence of subsequent mitigation or treatment furnished: [ATTACH OR IDENTIFY: ________________________________].

Buyer acknowledges receipt of the statutory radon statement and the listed test results and mitigation or treatment evidence, if any.

Buyer signature: _______________________________ Date: [__/__/____]

CLOSING CHECKLIST

• ☐ Consumer-credit and seller-financing classification completed by counsel.
• ☐ Final payment schedule reconciled to all disclosures and any Note.
• ☐ Senior-lien consent, payoff, or assumption documented; due-on-sale risk resolved.
• ☐ Title, legal description, access, possession, water, minerals, taxes, assessments, zoning, and insurance reviewed.
• ☐ Seller and Buyer signatures, marital or homestead interests, entity authority, and acknowledgments confirmed.
• ☐ Lead disclosure completed before Buyer became obligated, if applicable.
• ☐ Montana radon statement delivered and signed before or with offer; known prior radon testing and mitigation records furnished.
• ☐ Contract or abstract recording, county package, transfer certificate, formatting, and fees confirmed.
• ☐ Appurtenant water rights checked against DNRC records; applicable certificate disclosure, ownership-update form and fee, and signed recording certification arranged.
• ☐ Default and remedy clauses reviewed without assuming forfeiture is automatic.
• ☐ Final deed form, escrow instructions, payoff evidence, and deed-delivery conditions documented.

OFFICIAL SOURCES

• Mont. Code Ann. § 70-20-115 — notice to purchaser under contract for deed
• Mont. Code Ann. § 28-1-104 — relief from forfeiture
• Mont. Code Ann. Title 70, chapter 21 — recording transfers
• Mont. Code Ann. § 15-7-305 — realty transfer certificate
• Mont. Code Ann. § 85-2-424 — water-right disclosure and ownership update
• Mont. Code Ann. § 1-5-610 — short-form notarial certificates
• Mont. Code Ann. § 75-3-606 — radon disclosure
• 12 U.S.C. § 1701j-3 — federal due-on-sale framework
• 42 U.S.C. § 4852d — lead disclosure on transfer of residential property