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Montana · MCA 70-24-304Montana tenant security deposits when selling a rental: the seller stays liable for deposits and prepaid rent

Montana's Residential Landlord and Tenant Act lets a landlord who conveys a rented dwelling, in a good faith sale to a bona fide purchaser, out of liability under the rental agreement and the Act for events after written notice of the conveyance to the tenant, unless otherwise agreed (MCA 70-24-304(1)). The same subsection keeps the selling landlord liable to the tenant for all security deposits recoverable under the security deposit chapter and all prepaid rent (70-24-304(1)); the two chapters are read together (70-24-112). The statute does not itself set a procedure for moving deposits to the buyer, so who will hold and refund them is a contract point between seller and buyer. At the end of the tenancy the deposit is returned within 10 days if there is no damage, cleaning, unpaid rent or utilities, or within 30 days together with a written list of rent due and damage and cleaning charges (MCA 70-25-202(1)).

What the statutes set

  1. Seller relieved (70-24-304(1))

    For events after written notice of the sale to the tenant, unless otherwise agreed.

  2. Seller still liable (70-24-304(1))

    For all recoverable security deposits and prepaid rent.

  3. Refund (70-25-202(1))

    10 days if nothing is owed; 30 days with a written list of charges.

  4. Read together (70-24-112)

    The landlord-tenant act and the deposit chapter.

What the TC does on a Montana sale with tenants

  • Get the rent roll with each tenant's deposit and any prepaid rent.
  • Agree in the contract whether deposits are credited to the buyer, since the seller stays liable to the tenant.
  • Send each tenant written notice of the sale after closing.

Questions about Montana deposits at sale

Is a Montana seller still liable for tenants' deposits after the sale?

Yes. The selling landlord remains liable to the tenant for all recoverable security deposits and prepaid rent (MCA 70-24-304(1)).

When must a Montana landlord return a security deposit?

Within 10 days if nothing is owed, or within 30 days with a written list of rent due and damage and cleaning charges (MCA 70-25-202(1)).

Related guides

Track the rent roll, deposit credits and tenant notices as tasks on the deal in ClosingCode.

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Sources: MCA 70-24-112, 70-24-304, 70-25-202 (mca.legmt.gov), read November 1, 2026.

General information, not legal advice. ClosingCode is software; it is not a law firm or brokerage. This guide is not a substitute for the advice or services of an attorney.