Karen listed her Missoula home for sale in March. She accepted an offer from buyer Derek on April 10th without having yet provided him with the Montana seller disclosure statement. Karen's agent delivered the completed disclosure form to Derek on April 12th, two days after offer acceptance. Derek reviewed the disclosure and discovered a known foundation crack that had not been mentioned during showings. He now wishes to withdraw from the transaction without penalty. Under Montana law, which statement most accurately describes Derek's legal position?

Correct Answer

B) Derek may withdraw without penalty because the disclosure was delivered after offer acceptance, violating the Montana Seller Disclosure Act's timing requirement.

Under the Montana Seller Disclosure Act (MCA Title 37, Chapter 51, Part 3), the seller must deliver the written disclosure statement before or at the time of an accepted offer. Because Karen's agent delivered the disclosure two days after offer acceptance, the statutory timing requirement was violated. When a seller fails to timely deliver the disclosure, the buyer retains the right to rescind the transaction without penalty. Derek's right to withdraw is grounded in the seller's failure to comply with the mandatory delivery timing, not merely in the content of the disclosed defect.