Which of the following transactions is typically exempt from Montana's seller property disclosure requirements?
Correct Answer
B) Transfer by court order, such as a foreclosure sale
Under Montana law (MCA 70-16-702), certain involuntary or court-ordered transfers are exempt from the seller's property disclosure requirements. A court-ordered foreclosure sale is a common example of an exempt transaction because the transferring party (such as a lender or court trustee) typically has no firsthand knowledge of the property's condition. Other exemptions under Montana law include transfers between co-owners, transfers to a spouse or lineal relative, and transfers pursuant to a court order in a divorce or estate proceeding.
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