Montana Real Estate Licensing Law

Montana Code · 19 sections

The following is the full text of Montana’s real estate licensing law statutes as published in the Montana Code. For the official version, see the Montana Legislature.

Mont. Code Ann. § 37-45-102

37-45-102. (Effective January 1, 2026) Definitions. As used in this chapter, the following definitions apply: (1) "Construction contractor" means, except as provided in 37-45-104, a person, firm, or corporation that: (a) in the pursuit of an independent business, offers to undertake, undertakes, or submits a bid to construct, alter, repair, add to, subtract from, improve, move, wreck, or demolish for another a building, highway, road, railroad, excavation, or other structure, project, development, or improvement attached to real estate, including the installation of carpeting or other floor covering, the erection of scaffolding or other structures or works, or the installation or repair of roofing or siding; or (b) in order to do work similar to that described in subsection (1)(a) on the construction contractor's property, employs members of more than one trade on a single job or under a single building permit, except as otherwise provided. (2) "Department" means the department of labor and industry provided for in Title 2, chapter 15, part 17.

Mont. Code Ann. § 37-51-102

37-51-102. Definitions. Unless the context requires otherwise, in this chapter the following definitions apply: (1) (a) "Adverse material fact" means a fact that should be recognized by a broker or salesperson as being significant enough to affect a person's decision to enter into a contract to buy or sell real property and may be a fact that: (i) materially affects the value, affects the structural integrity, or presents a documented health risk to occupants of the property; or (ii) materially affects the buyer's ability or intent to perform the buyer's obligations under a proposed or existing contract. (b) The term does not include the fact that an occupant of the property has or has had a communicable disease or that the property was the site of a suicide or felony. (2) "Asset management" means management, oversight, or direct actions taken to maintain or transfer any real property before a foreclosure sale or in preparation for liquidation of real property owned by the client pursuant to a foreclosure sale. This includes any action taken to preserve, restore, or improve the value and to lessen the risk of damage to the property in preparation for liquidation of real property pursuant to a foreclosure sale. (3) "Board" means the board of realty regulation provided for in 2-15-1757. (4) "Broker" includes an individual who: (a) for another or for valuable consideration or who with the intent or expectation of receiving valuable consideration negotiates or attempts to negotiate the listing, sale, purchase, rental, exchange, or lease of real estate or of the improvements on real estate or collects rents or attempts to collect rents; (b) is employed by or on behalf of the owner or lessor of real estate to conduct the sale, leasing, subleasing, or other disposition of real estate for consideration; (c) engages in the business of charging an advance fee or contracting for collection of a fee in connection with a contract by which the individual undertakes primarily to promote the sale, lease, or other disposition of real estate in this state through its listing in a publication issued primarily for this purpose or for referral of information concerning real estate to brokers; (d) makes the advertising, sale, lease, or other real estate information available by public display to potential buyers; (e) aids or attempts or offers to aid, for a fee, any person in locating or obtaining any real estate for purchase or lease; (f) receives a fee, commission, or other compensation for referring to a licensed broker or salesperson the name of a prospective buyer or seller of real property; (g) performs asset management services for real property in conjunction with the marketing or transfer of the property; or (h) advertises or represents to the public that the individual is engaged in any of the activities referred to in this subsection (4). (5) "Buyer" means a person who is interested in acquiring an ownership interest in real property or who has entered into an agreement to acquire an interest in real property. The term includes tenants or potential tenants with respect to leases or rental agreements of real property. (6) "Buyer agent" means a broker or salesperson who, pursuant to a written buyer broker agreement, is acting as the agent of the buyer in a real estate transaction and includes a buyer subagent and an in-house buyer agent designate. (7) "Buyer broker agreement" means a written agreement in which a prospective buyer employs a broker to locate real estate of the type and with terms and conditions as designated in the written agreement. (8) "Buyer subagent" means a broker or salesperson who, pursuant to an offer of a subagency, acts as the agent of a buyer. (9) "Department" means the department of labor and industry provided for in Title 2, chapter 15, part 17. (10) "Dual agent" means a broker or salesperson who, pursuant to a written listing agreement or buyer broker agreement or as a buyer or seller subagent, acts as the agent of both the buyer and seller with written authorization, as provided in 37-51-314. An in-house buyer or seller agent designate may not be considered a dual agent. (11) "Franchise agreement" means a contract or agreement by which: (a) a franchisee is granted the right to engage in business under a marketing plan prescribed in substantial part by the franchisor; (b) the operation of the franchisee's business is substantially associated with the franchisor's trademark, trade name, logotype, or other commercial symbol or advertising designating the franchisor; and (c) the franchisee is required to pay, directly or indirectly, a fee for the right to operate under the agreement. (12) "In-house buyer agent designate" means a broker or salesperson employed by or associated as an independent contractor with a broker and designated by the broker as the exclusive agent for a buyer for a designated transaction and who may not be considered to be acting for other than the buyer with respect to the designated transaction. (13) "In-house seller agent designate" means a broker or salesperson employed by or associated as an independent contractor with a broker and designated by the broker as the exclusive agent for a seller for a designated transaction and who may not be considered to be acting for other than the seller with respect to the designated transaction. (14) "Listing agreement" means a written agreement between a seller and broker for the sale of real estate, with the terms and conditions set out in the agreement. (15) "Negotiations" includes: (a) efforts to act as an intermediary between parties to a real estate transaction; (b) facilitating and participating in contract discussions; (c) completing forms for offers, counteroffers, addendums, and other writings; and (d) presenting offers and counteroffers. (16) "Person" includes individuals, partnerships, associations, and corporations, foreign and domestic, except that when referring to a person licensed under this chapter, it means an individual. (17) "Real estate" includes leaseholds as well as any other interest or estate in land, whether corporeal, incorporeal, freehold, or nonfreehold and whether the real estate is situated in this state or elsewhere. (18) "Real estate transaction" means the sale, exchange, or lease or grant of an option for the sale, exchange, or lease of an interest in real estate and includes all communication, interposition, advisement, negotiation, and contract development and closing. (19) "Salesperson" includes an individual who for a salary, commission, or compensation of any kind is associated, either directly, indirectly, regularly, or occasionally, with a real estate broker to sell, purchase, or negotiate for the sale, purchase, exchange, or renting of real estate. (20) "Seller" means a person who has entered into a listing agreement to sell real estate and includes landlords who have an interest in or are a party to a lease or rental agreement. (21) "Seller agent" means a broker or salesperson who, pursuant to a written listing agreement, acts as the agent of a seller and includes a seller subagent and an in-house seller agent designate. (22) "Seller subagent" means a broker or salesperson who, pursuant to an offer of a subagency, acts as the agent of a seller. (23) (a) "Statutory broker" means a broker or salesperson who assists one or more parties to a real estate transaction without acting as an agent or representative of any party to the real estate transaction. (b) A broker or salesperson is presumed to be acting as a statutory broker unless the broker or salesperson has entered into a listing agreement with a seller or a buyer broker agreement with a buyer or has disclosed, as required in this chapter, a relationship other than that of a statutory broker. (24) "Supervising broker" means a licensed broker with whom a licensed salesperson is associated, directly, indirectly, regularly, or occasionally, to sell, purchase, or negotiate for the sale, purchase, exchange, or renting of real estate. (25) "Supervising broker endorsement" means an endorsement to a broker's license that is required of any licensed broker who supervises licensed salespersons performing real estate activity.

Mont. Code Ann. § 37-51-103

37-51-103. Exemptions. (1) An act performed for compensation of any kind in the buying, selling, exchanging, leasing, or renting of real estate or in negotiating a real estate transaction for others, except as specified in this section, must identify the person performing any of the acts as a real estate broker or a real estate salesperson. The licensing provisions of this chapter do not: (a) apply to any person who, as owner or lessor, performs any acts listed in subsection (1) with reference to property owned or leased by the person or to an auctioneer employed by the owner or lessor to aid and assist in conducting a public sale held by the owner or lessor; (b) apply to any person acting as attorney-in-fact under a special or general power of attorney from the owner of any real estate authorizing the purchase, sale, exchange, renting, or leasing of any real estate, unless the person acting as attorney-in-fact does so regularly or consistently for a person or persons, for or with the expectation of receiving a fee, commission, or other valuable consideration in conjunction with a business or for the purpose of avoiding license requirements; (c) include in any way the services rendered by any attorney at law in the performance of the attorney's duties; (d) apply to any person appointed by a court for the purpose of evaluating or appraising an estate in a probate matter; (e) include a receiver, a trustee in bankruptcy, an administrator or executor, any person selling real estate under order of any court, a trustee under a trust agreement, deed of trust, or will, or an auctioneer employed by a receiver, trustee in bankruptcy, administrator, executor, or trustee to aid and assist in conducting a public sale held by the officer; (f) apply to public officials in the conduct of their official duties; (g) apply to any person, partnership, association, or corporation, foreign or domestic, performing any act with respect to prospecting, leasing, drilling, or operating land for hydrocarbons and hard minerals or disposing of any hydrocarbons, hard minerals, or mining rights, whether upon a royalty basis or otherwise; (h) apply to a person performing any act with respect to the following types of land transactions: (i) right-of-way transfers for roads, utilities, and other public purposes, not including conservation easements or easements for recreational purposes; (ii) condemnations; or (iii) governmental or tribal permits; or (i) apply to property managers licensed under 37-56-105. (2) The provisions of this chapter do not apply to: (a) a newspaper or other publication of general circulation; (b) a radio or television station engaged in the normal course of business; or (c) digital media platforms that host advertisements for the sale of real estate but otherwise do not engage in activity with respect to the advertisements for which a license as a real estate broker or a real estate salesperson is required. A broker or salesperson who operates or is affiliated with a digital media platform that hosts advertisements for the sale of real property on the digital media platform but who otherwise does not engage in activity with respect to the advertisements for which a license as a real estate broker or real estate salesperson is required may not be considered to be representing or providing real estate broker or real estate salesperson services to any seller or landlord who posts property to the digital media platform.

Mont. Code Ann. § 37-51-105

37-51-105. Sexual or violent offender registration information -- responsibility of broker or salesperson. The responsibility of a broker or salesperson with respect to sexual or violent offender registration information maintained by a governmental entity under Title 46, chapter 23, part 5, is limited to disclosure of: (1) the fact that the information may be maintained and by whom; and (2) the actual knowledge, if any, that the broker or salesperson has of sexual or violent offender registration information that pertains to the property in question.

Mont. Code Ann. § 37-51-204

37-51-204. Educational programs. (1) The board may, subject to 37-1-101, conduct, hold, or assist in conducting or holding real estate clinics, meetings, courses, or institutes and incur necessary expenses in this connection. (2) Except as provided in 37-51-302, 37-51-303, and subsection (3) of this section, the board may not require examinations of licensees. (3) The board may require specified performance levels of a licensee with respect to the subject matter of a continuing education course required by the board when the licensee and the instructor of the course are not physically present in the same facility at the time the licensee receives the instruction. (4) Education information obtained electronically by the board or stored in the board's databases may be used to determine compliance with education requirements established by the board. The use of the information may not be considered an audit for purposes of compliance with 37-1-306.

Mont. Code Ann. § 37-51-301

37-51-301. License required -- limited to persons. (1) It is unlawful for a person to engage in or conduct, directly or indirectly, or to advertise or represent to the public as engaging in or conducting the business or acting in the capacity of a real estate broker or a real estate salesperson within this state without a license as a broker or salesperson or otherwise complying with this chapter. (2) It is unlawful for a person to supervise licensed salespersons or to act in the capacity of a supervising broker unless the person has a valid and active Montana broker's license and a supervising broker endorsement. (3) Corporations, partnerships, and associations may not be licensed under this chapter. A corporation or a partnership may act as a licensee if every corporate officer and every partner performing the functions of a licensee is licensed under this chapter. All officers of a corporation or all members of a partnership acting as a licensee are in violation of this chapter unless there is full compliance with this subsection. (4) (a) For purposes of this section and whether or not the person is physically located in Montana, "within this state" or similar terminology includes: (i) marketing or dealing with any interest in real estate or a business opportunity involving an interest in real estate that is situated in the state of Montana; or (ii) conducting or attempting to conduct or solicit real estate business with residents of the state of Montana. (b) Unless exempted from this chapter, any single act described within the definitions of "broker" or "salesperson" is sufficient to constitute engaging in the business of a real estate broker or salesperson.

Mont. Code Ann. § 37-51-302

37-51-302. Broker's or salesperson's license -- qualifications of applicant -- supervising broker endorsement. (1) Licenses may be granted only to individuals considered by the board to be of good repute and competent to transact the business of a broker or a salesperson in a manner that safeguards the interests of the public. (2) An applicant for a broker's license: (a) must be at least 18 years of age; (b) must have graduated from an accredited high school or completed an equivalent education as determined by the board; (c) must have been actively engaged as a licensed real estate salesperson for a period of 2 years or have had experience or special education equivalent to that which a licensed real estate salesperson ordinarily would receive during this 2-year period as determined by the board, except that if the board finds that an applicant could not obtain employment as a licensed real estate salesperson because of conditions existing in the area where the applicant resides, the board may waive this experience requirement; (d) shall file an application for a license with the department; and (e) shall furnish written evidence that the applicant has completed 60 classroom or equivalent hours, in addition to those required to secure a salesperson's license, in a course of study approved by the board and taught by instructors approved by the board and has satisfactorily passed an examination dealing with the material taught in each course. The course of study must include the subjects of real estate principles, real estate law, real estate finance, and related topics. (3) The board shall require information it considers necessary from an applicant to determine honesty, trustworthiness, and competency. (4) (a) An applicant for a salesperson's license: (i) must be at least 18 years of age; (ii) must have received credit for completion of 2 years of full curriculum study at an accredited high school or completed an equivalent education as determined by the board; (iii) shall file an application for a license with the department; and (iv) shall furnish written evidence that the applicant has completed between 60 and 80 classroom or equivalent hours, as set by the board. The hours must be in a course of study approved by the board and taught by instructors approved by the board. The applicant must satisfactorily pass an examination dealing with the material taught in each course. The course of study must include the subjects of real estate principles, real estate law and ethics, real estate finance, and related topics. (b) The application must be accompanied by the recommendation of a licensed broker with a supervising broker endorsement by whom the applicant will be employed or placed under contract, certifying that the applicant is of good repute and that the broker will actively supervise and train the applicant during the period the requested license remains in effect. (5) If the board determines that an applicant possesses the qualifications required by this chapter, the department shall issue a license to the applicant. (6) (a) An applicant for a supervising broker endorsement must meet the education and experience requirements established by the board by rule except that continuing education requirements for a supervising broker endorsement may not be in addition to the continuing education requirements for a licensed broker with respect to the total number of hours or credits required. (b) The board may not assess a licensing fee for obtaining or renewing a supervising broker endorsement. (c) The board may adopt rules allowing a salesperson to temporarily associate with a broker with a supervising broker endorsement other than the supervising broker listed on the salesperson's license.

Mont. Code Ann. § 37-51-303

37-51-303. Broker or salesperson examination. (1) In addition to proof of honesty, trustworthiness, and good reputation, an applicant whose application is pending shall satisfactorily pass an examination. (2) (a) The examination for a salesperson's license must include subject portions that the board determines by rule to be appropriate. (b) If the applicant passes one subject portion of the examination, the applicant is not required to repeat that portion of the examination if the applicant passes the remaining portion within 12 months. (3) The examination for a broker's license must be of a more exacting nature and scope and more stringent than the examination for a salesperson's license.

Mont. Code Ann. § 37-51-306

37-51-306. Transactions with nonresidents and with nonlicensed brokers, salespersons, or property managers -- consent to legal process. (1) A licensed broker may not employ or compensate, directly or indirectly, a person for performing the acts regulated by this chapter who is not a licensed broker, a licensed salesperson, or a licensed property manager. However, a licensed broker may pay a commission to a licensed broker of another state or jurisdiction if the nonresident broker has not conducted and does not conduct in this state a service for which a fee, compensation, or commission is paid. (2) A nonresident licensee shall file an irrevocable written consent that legal actions arising out of a commenced or completed transaction may be commenced against the nonresident licensee in a county of this state that may be appropriate and designated by Title 25, chapter 2, part 1. The consent must provide that service of summons in this action may be served on the department for and on behalf of the nonresident licensee, and this service is sufficient to give the court jurisdiction over the licensee conducting a transaction in a county. The consent must be acknowledged and, if made by a corporation, must be authenticated by its seal.

Mont. Code Ann. § 37-51-308

37-51-308. Broker's office -- display -- notice to department of change of address. (1) A licensed broker shall maintain a designated physical address where the original license or a copy of the current license of the broker must be prominently displayed. The designated address of the broker must be indicated on the broker's license. (2) (a) If the broker is a supervising broker, the broker shall prominently display at the broker's designated physical address a copy of the current license of each salesperson associated or under contract with the broker. (b) The name of the broker and the designated address of the broker must be indicated on the salesperson's license. (3) In case of removal from the designated address, the broker shall notify the department before removal or within 10 days after removal, designating the new physical address and paying the required fee. After receipt of the information required under this subsection, the department shall issue a license to the broker for the new location for the unexpired period.

Mont. Code Ann. § 37-51-309

37-51-309. Broker -- salesperson -- for-sale-by-owner personal transactions of salesperson -- notice to department of change of association. (1) A salesperson may not be associated with, be under contract to, or perform services for more than one supervising broker, except on a temporary basis as provided in 37-51-302. (2) (a) If a licensed salesperson desires to change association or contractual relationship from one supervising broker to another, the salesperson shall notify the department promptly in writing and pay the required fee. (b) The successor supervising broker shall notify the department in writing of acceptance of the salesperson. (c) After the department receives written acceptance of the salesperson from the successor supervising broker, the department shall issue a new license to the salesperson and a new endorsement to the supervising broker. A salesperson may not directly or indirectly work for or with a supervising broker until the salesperson has been issued a license to work for or with that supervising broker. (3) (a) If a licensed salesperson chooses to change association or contractual relationship from the salesperson's supervising broker, but the salesperson does not have another supervising broker who has accepted supervision of the salesperson, the salesperson shall notify the department promptly in writing, at which time the salesperson's license will automatically be put on inactive status. (b) When the conditions in subsection (3)(a) apply, the department may not charge a fee for the change in status. (c) The salesperson may not practice during a time when the salesperson has no supervising broker or when the salesperson's license is on inactive status. (4) A supervising broker who wishes to terminate supervision of a salesperson shall notify the salesperson in advance or concurrently with notification to the board. Termination of supervision by the supervising broker is not effective under this subsection until the supervising broker has notified both the salesperson and the board. (5) Only one license issued to a salesperson is in effect at one time. (6) (a) The provisions of this chapter do not prohibit a salesperson from engaging in for-sale-by-owner personal transactions, and the provisions of this chapter do not require a supervising broker to exercise any supervision or provide any training for a salesperson with respect to for-sale-by-owner personal transactions of the salesperson. (b) A supervising broker or real estate firm is not responsible or liable for the for-sale-by-owner personal transactions of a salesperson. (c) Prior to entering into a for-sale-by-owner personal transaction, the salesperson shall disclose in writing to the other party that the transaction is a for-sale-by-owner personal transaction with respect to the salesperson and that the transaction does not involve the salesperson's supervising broker or real estate firm. (d) A supervising broker or real estate firm is not responsible or liable for the failure of a salesperson to provide the disclosure required in subsection (6)(c). (7) For the purposes of this section, "for-sale-by-owner personal transaction" includes the following: (a) the sale, purchase, or exchange of real property owned or acquired by the salesperson; and (b) the leasing or renting of real property owned by the salesperson.

Mont. Code Ann. § 37-51-312

37-51-312. No taxation by municipality. (1) A license fee or license tax may not be imposed on a real estate broker or salesperson as a condition to the practice of the broker's or salesperson's profession by a municipality or any other political subdivision of the state, including a local government with self-governing powers. (2) This section does not prohibit a municipality or other political subdivision of the state from imposing a general business license fee or general business license tax on an establishment as a condition of conducting business in the municipality's or other political subdivision's jurisdiction.

Mont. Code Ann. § 37-51-313

37-51-313. Duties, duration, and termination of relationship between broker or salesperson and buyer or seller. (1) The provisions of this chapter and the duties described in this section govern the relationships between brokers or salespersons and buyers or sellers and are intended to replace the duties of agents as provided elsewhere in state law and replace the common law as applied to these relationships. The terms "buyer agent", "dual agent", and "seller agent", as used in this chapter, are defined in 37-51-102 and are not related to the term "agent" as used elsewhere in state law. The duties of a broker or salesperson vary depending upon the relationship with a party to a real estate transaction and are as provided in this section. (2) A seller agent is obligated to the seller to: (a) act solely in the best interests of the seller, except that a seller agent, after written disclosure to the seller and with the seller's written consent, may represent multiple sellers of property or list properties for sale that may compete with the seller's property without breaching any obligation to the seller; (b) obey promptly and efficiently all lawful instructions of the seller; (c) disclose all relevant and material information that concerns the real estate transaction and that is known to the seller agent and not known or discoverable by the seller, unless the information is subject to confidentiality arising from a prior or existing agency relationship on the part of the seller agent with a buyer or another seller; (d) safeguard the seller's confidences; (e) exercise reasonable care, skill, and diligence in pursuing the seller's objectives and in complying with the terms established in the listing agreement; (f) fully account to the seller for any funds or property of the seller that comes into the seller agent's possession; and (g) comply with all applicable federal and state laws, rules, and regulations. (3) A seller agent is obligated to the buyer to: (a) disclose to a buyer or the buyer agent any adverse material facts that concern the property and that are known to the seller agent, except that the seller agent is not required to inspect the property or verify any statements made by the seller; (b) disclose to a buyer or the buyer agent when the seller agent has no personal knowledge of the veracity of information regarding adverse material facts that concern the property; (c) act in good faith with a buyer and a buyer agent; and (d) comply with all applicable federal and state laws, rules, and regulations. (4) A buyer agent is obligated to the buyer to: (a) act solely in the best interests of the buyer, except that a buyer agent, after written disclosure to the buyer and with the buyer's written consent, may represent multiple buyers interested in buying the same property or properties similar to the property in which the buyer is interested or show properties in which the buyer is interested to other prospective buyers without breaching any obligation to the buyer; (b) obey promptly and efficiently all lawful instructions of the buyer; (c) disclose all relevant and material information that concerns the real estate transaction and that is known to the buyer agent and not known or discoverable by the buyer, unless the information is subject to confidentiality arising from a prior or existing agency relationship on the part of the buyer agent with another buyer or a seller; (d) safeguard the buyer's confidences; (e) exercise reasonable care, skill, and diligence in pursuing the buyer's objectives and in complying with the terms established in the buyer broker agreement; (f) fully account to the buyer for any funds or property of the buyer that comes into the buyer agent's possession; and (g) comply with all applicable federal and state laws, rules, and regulations. (5) A buyer agent is obligated to the seller to: (a) disclose any adverse material facts that are known to the buyer agent and that concern the ability of the buyer to perform on any purchase offer; (b) disclose to the seller or the seller agent when the buyer agent has no personal knowledge of the veracity of information regarding adverse material facts that concern the ability of the buyer to perform on any purchase offer; (c) act in good faith with a seller and a seller agent; and (d) comply with all applicable federal and state laws, rules, and regulations. (6) A statutory broker is not the agent of the buyer or seller but nevertheless is obligated to them to: (a) disclose to: (i) a buyer or a buyer agent any adverse material facts that concern the property and that are known to the statutory broker, except that the statutory broker is not required to inspect the property or verify any statements made by the seller; (ii) a seller or a seller agent any adverse material facts that are known to the statutory broker and that concern the ability of the buyer to perform on any purchase offer; (b) exercise reasonable care, skill, and diligence in putting together a real estate transaction; and (c) comply with all applicable federal and state laws, rules, and regulations. (7) A dual agent is obligated to a seller in the same manner as a seller agent and is obligated to a buyer in the same manner as a buyer agent under this section except that a dual agent has a duty to disclose to a buyer or seller any adverse material facts that are known to the dual agent, regardless of any confidentiality considerations. (8) A dual agent may not disclose the following information without the written consent of the person to whom the information is confidential: (a) the fact that the buyer is willing to pay more than the offered purchase price; (b) the fact that the seller is willing to accept less than the purchase price that the seller is asking for the property; (c) factors motivating either party to buy or sell; and (d) any information that a party indicates in writing to the dual agent is to be kept confidential. (9) While managing properties for owners, a licensed real estate broker or licensed real estate salesperson is only required to meet the requirements of 37-56-105 through 37-56-107, other than those requirements for the licensing of property managers, and the rules adopted by the department to govern licensed property managers. (10) A licensed broker or salesperson must obtain an appropriate written buyer broker agreement or written listing agreement prior to performing the acts of a buyer agent or a seller agent. A licensed broker or salesperson who is acting as a buyer agent or a seller agent without a written buyer broker agreement or written listing agreement is nevertheless obligated to comply with the requirements of this chapter. (11) (a) The agency relationship of a buyer agent, seller agent, or dual agent continues until the earliest of the following dates: (i) completion of performance by the agent; (ii) the expiration date agreed to in the listing agreement or buyer broker agreement; or (iii) the occurrence of any authorized termination of the listing agreement or buyer broker agreement. (b) A statutory broker's relationship continues until the completion, termination, or abandonment of the real estate transaction giving rise to the relationship. (12) Upon termination of an agency relationship, a broker or salesperson does not have any further duties to the principal, except as follows: (a) to account for all money and property of the principal; (b) to keep confidential all information received during the course of the agency relationship that was made confidential at the principal's direction, except for: (i) subsequent conduct by the principal that authorizes disclosure; (ii) disclosure of any adverse material facts that concern the principal's property or the ability of the principal to perform on any purchase offer; (iii) disclosure required by law or to prevent the commission of a crime; (iv) the information being disclosed by someone other than the broker or salesperson; and (v) the disclosure of the information being reasonably necessary to defend the conduct of the broker or salesperson, including employees, independent contractors, and subagents. (13) Consistent with the licensee's duties as a buyer agent, a seller agent, a dual agent, or a statutory broker, a licensee shall endeavor to ascertain all pertinent facts concerning each property in any transaction in which the licensee acts so that the licensee may fulfill the obligation to avoid error, exaggeration, misrepresentation, or concealment of pertinent facts.

Mont. Code Ann. § 37-51-314

37-51-314. Relationship disclosure requirements. (1) A broker or salesperson shall disclose the existence and nature of relevant agency or other relationships to the parties to a real estate transaction as provided in this section. (2) A seller agent shall make the required relationship disclosures as follows: (a) The initial disclosure, as provided in subsection (6), must be made to the seller at the time the listing agreement is executed. (b) If a broker or salesperson is acting as a seller subagent, a subsequent disclosure, as provided in subsection (7), must be made to the seller at the time negotiations commence. (c) The subsequent disclosure established in subsection (7) must be made to the buyer or buyer agent at the time negotiations commence. (3) A buyer agent shall make the required relationship disclosures as follows: (a) The initial disclosure, as provided in subsection (6), must be made to the buyer at the time the buyer broker agreement is executed. (b) If a broker or a salesperson is acting as a buyer subagent, a subsequent disclosure, as provided in subsection (7), must be made to the buyer at the time negotiations commence. (c) The subsequent disclosure established in subsection (7) must be made to the seller or seller agent at the time negotiations commence. (4) A statutory broker shall make the required relationship disclosures as follows: (a) The initial disclosure, as provided in subsection (6), must be made to the buyer at the time the statutory broker first endeavors to locate property for the buyer. (b) The subsequent disclosure, as provided in subsection (7), must be made to the seller or seller agent at the time negotiations commence. (5) A buyer agent or seller agent who contemplates becoming or subsequently becomes a dual agent shall disclose the potential or actual relationship to the buyer and seller and receive their consent prior to the time or at the time that the dual agency arises. If the buyer agent or seller agent who contemplates becoming a dual agent has not previously given the buyer or seller the initial disclosure, as provided in subsection (6), the initial disclosure must be used, but if the initial disclosure has been given, any subsequent disclosures must take the form of the disclosure provided in subsection (7). (6) The initial disclosure as required by subsections (2)(a), (3)(a), (4)(a), and (5) must be written and contain substantially the following information: (a) a description of the duties owed by the broker and the salesperson as set forth in 37-51-313; (b) a statement that reads as follows: "IF A SELLER AGENT IS ALSO REPRESENTING A BUYER OR A BUYER AGENT IS ALSO REPRESENTING A SELLER WITH REGARD TO A PROPERTY, THEN A DUAL AGENCY RELATIONSHIP MAY BE ESTABLISHED. IN A DUAL AGENCY RELATIONSHIP, THE DUAL AGENT IS EQUALLY OBLIGATED TO BOTH THE SELLER AND THE BUYER. THESE OBLIGATIONS MAY PROHIBIT THE DUAL AGENT FROM ADVOCATING EXCLUSIVELY ON BEHALF OF THE SELLER OR BUYER AND MAY LIMIT THE DEPTH AND DEGREE OF REPRESENTATION THAT YOU RECEIVE. A BROKER OR A SALESPERSON MAY NOT ACT AS A DUAL AGENT WITHOUT THE SIGNED, WRITTEN CONSENT OF BOTH THE SELLER AND THE BUYER". (c) a definition of "adverse material fact"; (d) identification of the type of relationship disclosed; (e) the signature of the seller or the buyer to whom the disclosure is given; (f) the signature of the broker or the salesperson making the disclosure; and (g) the date of the disclosure. (7) The subsequent disclosure required by subsections (2)(b), (2)(c), (3)(b), (3)(c), (4)(b), and (5) or otherwise necessitated by a change or prospective change in a relationship described in a previous disclosure must be written, must contain the information required in subsections (6)(d), (6)(e), and (6)(g), and may be included in other documents involved in the real estate transaction. If a seller or buyer has not previously consented to the entry of the broker or the salesperson into a dual agency relationship, a subsequent disclosure must include all the information required in subsection (6), including the seller's or buyer's written consent to the dual agency relationship. (8) A broker or salesperson, while managing properties for owners, shall disclose to all customers and clients the contractual relationship of the broker or salesperson. (9) When a broker or salesperson is acting only as a property manager, another relationship disclosure is not required and a disclosure that complies with subsection (8) must be construed as a sufficient disclosure of the contractual relationship. (10) Any disclosure required by this section may contain the following information: (a) a description of the other relationships and corresponding duties available under this part, as long as the disclosure clearly indicates the relationship being disclosed; (b) a consent to the creation of a dual agency relationship; (c) other definitions in or provisions of this chapter; and (d) other information not inconsistent with the information required in the disclosure. (11) A written disclosure that complies with the provisions of this section must be construed as a sufficient disclosure of the relationship between a broker or salesperson and a buyer or seller and must be construed as conclusively establishing the obligations owed by a broker or salesperson to a buyer or seller in a real estate transaction.

Mont. Code Ann. § 37-51-315

37-51-315. Vicarious liability. (1) A party to a real estate transaction is not liable for a misrepresentation made by the party's agent or subagent unless: (a) the party has actual knowledge of the misrepresentation; or (b) the agent or subagent is repeating a misrepresentation made by the party. (2) A broker is not liable for a misrepresentation made by the broker's subagent unless: (a) the broker has actual knowledge of the misrepresentation; (b) the subagent making the misrepresentation is an employee of the broker and not an independent contractor; or (c) a broker or subagent is repeating a misrepresentation made by the broker. (3) An agent is not liable for a misrepresentation made by the principal unless the agent has actual knowledge of the misrepresentation.

Mont. Code Ann. § 37-51-321

37-51-321. Unprofessional conduct -- sanction of license. (1) The following practices, in addition to the provisions of 37-1-316 and as provided in board rule, are considered unprofessional conduct for an applicant or a person licensed under this chapter: (a) intentionally misleading, untruthful, or inaccurate advertising, whether printed or by radio, display, or other nature, if the advertising in any material particular or in any material way misrepresents any property, terms, values, policies, or services of the business conducted. A broker who operates under a franchise agreement engages in misleading, untruthful, or inaccurate advertising if in using the franchise name, the broker does not incorporate the broker's own name or the trade name, if any, by which the office is known in the franchise name or logotype. The board may not adopt advertising standards more stringent than those set forth in this subsection (1)(a). (b) making any false promises of a character likely to influence, persuade, or induce; (c) pursuing a continued and flagrant course of misrepresentation or making false promises through agents or salespersons or any medium of advertising or otherwise; (d) use of the term "realtor" by a person not authorized to do so or using another trade name or insignia of membership in a real estate organization of which the licensee is not a member; (e) failing to account for or to remit money coming into the licensee's possession when the money belongs to others; (f) accepting, giving, or charging an undisclosed commission, rebate, or profit on expenditures made for a principal; (g) acting in a dual capacity of broker and undisclosed principal in a transaction, including failing to disclose in advertisements for real property the person's dual capacity as broker and principal; (h) guaranteeing, authorizing, or permitting a person to guarantee future profits that may result from the resale of real property; (i) offering real property for sale or lease without the knowledge and consent of the owner or the owner's authorized agent or on terms other than those authorized by the owner or the owner's authorized agent; (j) inducing a party to a contract of sale or lease to break the contract for the purpose of substituting a new contract with another principal; (k) accepting employment or compensation for appraising real property contingent on the reporting of a predetermined value or issuing an appraisal report on real property in which the broker or salesperson has an undisclosed interest; (l) as a broker or a salesperson, negotiating a sale, exchange, or lease of real property directly with a seller or buyer if the broker or salesperson knows that the seller or buyer has a written, outstanding listing agreement or buyer broker agreement in connection with the property granting an exclusive agency to another broker; (m) soliciting, selling, or offering for sale real property by conducting lotteries for the purpose of influencing a purchaser or prospective purchaser of real property; (n) as a salesperson, representing or attempting to represent a real estate broker other than the employer without the express knowledge or consent of the employer; (o) failing voluntarily to furnish a copy of a written instrument to a party executing it at the time of its execution; (p) unless exempted, paying a commission in connection with a real estate sale or transaction to a person who is not licensed as a real estate broker or real estate salesperson under this chapter; (q) intentionally violating a rule adopted by the board in the interests of the public and in conformity with this chapter; (r) failing, if a salesperson, to place, as soon after receipt as is practicably possible, in the custody of the salesperson's supervising broker, deposit money or other money entrusted to the salesperson in that capacity by a person, except if the money received by the salesperson is part of the salesperson's personal transaction; (s) demonstrating unworthiness or incompetency to act as a broker or a salesperson; (t) conviction of a felony; (u) failing to meet the requirements of 37-56-105 through 37-56-107 or the rules adopted by the board governing property management while managing properties for owners; (v) failing to disclose to all customers and clients, including owners and tenants, the licensee's contractual relationship while managing properties for owners; (w) failing to maintain continuous professional liability insurance coverage that meets the requirements of 37-51-325: or (x) aiding or abetting a person or organization in taking an adverse action against a licensee or a license applicant because of speech or conduct that is not made in the licensee's or license applicant's professional capacity that, had the adverse action been taken by a state actor, the speech or conduct would have been protected under the free exercise clause or the free speech clause of the Montana constitution or the United states constitution. (2) (a) It is unlawful for a broker or salesperson to openly advertise property belonging to others, whether by means of printed material, radio, television, or display or by other means, unless the broker or salesperson has a signed listing agreement from the owner of the property. The listing agreement must be valid as of the date of advertisement. (b) The provisions of subsection (2)(a) do not prevent a broker or salesperson from: (i) including information on properties listed by other brokers or salespersons who will cooperate with the selling broker or salesperson in materials dispensed to prospective customers; or (ii) hosting advertisements on a website under the control or apparent control of a broker or salesperson for which the advertisements are posted on the website by the owner or landlord of the property for sale or rent, as long as the broker or salesperson does not perform on behalf of the owner or landlord of the property any services for which a license as a broker or salesperson is required. (3) The license of a broker or salesperson who violates this section may be sanctioned as provided in 37-1-312.

Mont. Code Ann. § 37-51-324

37-51-324. Penalty for failure to comply with trust account requirements. (1) An employee of the department may issue a citation to a broker responsible for maintenance of a trust account for failure to comply with trust account maintenance requirements as provided by rule under 37-1-319(3). (2) The citation must include: (a) the time and date on which the citation is issued; (b) the name, title, mailing address, and signature of the person issuing the citation; (c) reference to the statute or rule violated; (d) the name, title, and mailing address of the person to whom the citation is being sent, along with information explaining the procedure for the person receiving the citation to follow to pay the fine or dispute the violation; and (e) the amount of the applicable fine. (3) The applicable civil fine for failure to comply with trust account maintenance requirements is $50 for each cited violation. (4) The person who issues the citation is authorized to collect the fine and deposit the proceeds in the state special revenue account to the credit of the board. (5) The person who is issued a citation may pay the fine or file a written dispute of the violation with the board within 5 business days of the date of issuance. (6) A person who refuses to sign and accept a citation but who does not file a written dispute of the violation is demonstrating unprofessional conduct.

Mont. Code Ann. § 37-51-325

37-51-325. Professional liability insurance required -- errors and omissions insurance coverage -- policy requirements. (1) A real estate broker or salesperson with an active real estate license under this chapter must maintain continuous professional liability insurance coverage that meets the requirements of this section during the period of licensure. The insurance must cover the broker or salesperson for activities contemplated under Title 37, chapter 51, part 3, including errors and omissions by the real estate broker or salesperson. (2) A real estate broker or salesperson with an active real estate license under this chapter must be covered by professional liability insurance through a policy: (a) issued to real estate broker or salesperson licensees provided on a group policy basis that is approved by the board; (b) obtained by real estate broker or salesperson licensees independently; or (c) issued to the firm with which a real estate broker or salesperson license is affiliated. (3) All policies issued under this chapter must: (a) be issued by an insurer licensed under Title 33 to provide professional liability insurance; (b) offer prior acts coverage to an insured who maintains continuous past insurance coverage; (c) provide an automatic 60-day extended reporting period to report a claim if the policy is canceled or not renewed for any reason other than nonpayment of premium or a deductible; and (d) offer an optional extended reporting of not less than 365 days to report a claim, as long as the insured requests the extended reporting period and pays any additional premium for the extended reporting period within 60 days after expiration or cancellation of the policy. (4) (a) A professional liability insurance policy must be issued to the board and must cover a group of real estate brokers and salespersons licensed under Title 37, chapter 51, part 3, as named insureds. The board may request bids from insurers for the group policy and may use a limited solicitation under 18-4-305. The maximum contract period between the insurer and the board is seven consecutive policy terms, although the board may place the contract out for bid at the end of any policy period. A policy term is for a year. A real estate broker or salesperson licensee may not be denied coverage or be canceled by the group policy. (b) The group policy must: (i) have a minimum per-claim limit of $100,000; (ii) have a minimum annual aggregate limit of $300,000; (iii) have a deductible maximum of $2,500 a claim for damages; and (iv) provide coverage that is specific to the real estate broker or salesperson licensee regardless of changes in supervising broker. (5) If the board is unable to obtain a professional liability insurance policy as described in subsection (4) on terms and conditions the board determines are commercially reasonable, the requirements of this section do not apply to the licensing period for which the policy is sought. (6) A professional liability insurance policy may be independently issued to a real estate broker or salesperson licensee. The individual policy must: (a) have a minimum per-claim limit of $100,000; (b) have a minimum annual aggregate limit of $300,000; and (c) have a deductible maximum of $2,500 a claim for damages. (7) A professional liability insurance policy issued to the firm with which a real estate broker or salesperson licensee is affiliated must: (a) have a minimum per-claim limit of $100,000; (b) have a minimum annual aggregate limit of $1 million; and (c) have a maximum deductible as follows: (i) $10,000 a claim; or (ii) greater than $10,000 a claim but not to exceed $100,000 a claim, provided the firm has obtained written approval from the board, based on rules adopted by the board, that the firm is financially able to pay the difference between the amount of the deductible set forth in the firm's professional liability insurance policy and $10,000. (8) An applicant seeking to obtain a real estate broker or salesperson license or renew an active real estate broker or salesperson license shall prove to the board compliance with the insurance requirements of this section. A real estate broker or salesperson licensee who fails to produce proof of coverage on request by the board or its designee is subject to administrative suspension or disciplinary action as determined by the board. (9) For purposes of this section, the following definitions apply: (a) "Aggregate limit" means a provision in an insurance contract limiting the maximum liability of an insurer for a series of losses in a given time period, such as a policy term. (b) "Claims-made and reported policy" means an insurance policy written on a claims-made and reported basis, which provides coverage for claims first made against the insured and first reported to the insurer during the insured's policy period for acts, errors, or omissions that occur after the insured's retroactive date. (c) "Extended reporting period" means a designated period of time after expiration or cancellation of a claims-made and reported policy during which a claim may be made and reported as if the claim had been made and reported during the policy period. (d) "Per-claim limit" means the maximum limit payable, per licensee, for damages arising from the same or a related claim. (e) "Prior acts coverage" means coverage under a policy for claims made against the insured and reported to the insurer that arise from acts, errors, or omissions in services rendered by an insured prior to inception of the current policy period. (f) "Proof of coverage" means a copy of the actual policy of insurance, a certificate of insurance, or a binder of insurance. (g) "Retroactive date" means a provision, found in many claims-made and reported policies, that the policy may not cover claims for injuries or damages that occurred before the retroactive date even if the claim is first made during the policy period.

Mont. Code Ann. § 37-51-401

37-51-401. Action for compensation limited to licensed broker or salesperson. Any person engaged in the business of or acting in the capacity of a real estate broker or real estate salesperson within this state shall not be permitted to bring or maintain any action in the courts for the collection of compensation for the sale or lease or otherwise disposing of real estate without first alleging and proving that such person was a duly licensed real estate broker or real estate salesperson or authorized to act as a broker under the provisions of this chapter at the time the alleged cause of action or claim arose.

The law belongs to the people. Georgia v. Public.Resource.Org, 590 U.S. (2020)