A purchase agreement for a 25-acre parcel in Ravalli County, Montana is contingent on the buyer obtaining subdivision approval for dividing the land into five 5-acre lots. The seller argues no subdivision review is required because the parcel is over 20 acres. Under the Montana Subdivision and Platting Act, which statement is most accurate?
Correct Answer
A) The 20-acre exemption may not apply if the division creates parcels smaller than 20 acres each
Under the Montana Subdivision and Platting Act (MCA Title 76, Chapter 3), the 20-acre exemption applies when the resulting parcels are each 20 acres or more in size, not simply when the original parcel exceeds 20 acres. Dividing a 25-acre parcel into five 5-acre lots creates parcels well below 20 acres, so the exemption does not apply. Each resulting parcel must meet the 20-acre threshold for the exemption to be valid.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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