Montana Unit Ownership Act
Montana’s condominium statute — but only for the communities that opted in. The Act governs a property once its owners record a declaration submitting it to the chapter, and not before. The full statutory text, hosted for reference, with a plain-language guide for homeowners.
The Unit Ownership Act (Mont. Code Ann. §§ 70-23-101 to 70-23-1105) is Montana’s condominium statute. It is the name the chapter gives itself at § 70-23-101, and it is Montana’s only comprehensive condominium regime — though condominiums are reached by scattered provisions elsewhere too, notably the subdivision-review rules at §§ 76-3-103(18) and 76-3-203.
Read § 70-23-103 before you assume this Act governs you. The chapter is captioned “Applicability — submission by declaration required”, and that is exactly what it means: to bring a property under the Act, the sole owner or all of the owners (or lessees) must execute, acknowledge and record a declaration with the county recording officer. A property that looks like a condominium, is sold as a condominium and is called a condominium is not governed by this chapter unless that declaration was recorded. Townhomes and townhouses are the same: § 70-23-103(2) says the chapter applies to them only if a declaration is executed under that section. If you are trying to work out which law governs your community, the county records are where the answer lives — though the declaration must also be executed in accordance with § 70-23-301 and approved by the county before recording (§ 70-23-304).
What the Act gives a unit owner
- An undivided interest in the common elements that cannot be split off. Your percentage stays attached to your unit, the common elements stay undivided, and no owner can force a partition of them (§§ 70-23-403, 70-23-404, 70-23-405). That holds only while the property is under the Act. § 70-23-405 bars a partition action except as provided in § 70-23-805 — and once the property is removed, whether by the owners under § 70-23-801, by a 90% obsolescence vote under § 70-23-802, or automatically where the association does not decide to repair within 60 days of damage under § 70-23-803, the property becomes subject to partition at the suit of any single unit owner.
- The right to inspect the money. The manager must keep detailed, accurate, chronological records of receipts and expenditures affecting the common elements, and those records and the vouchers authorising payment must be available for examination by unit owners at the manager’s place of business at convenient hours on weekdays (§ 70-23-606). Note what that right is and is not: it is a common-element financial record, at the manager’s office, on a weekday.
- Seventy-two hours to walk away — if you ask. Where the seller or another person constitutes a majority of the unit owners — which § 70-23-102(13) measures as more than 50% of the aggregate undivided interest in the general common elements, unless the declaration provides otherwise, not as a count of units — § 70-23-613 makes the seller disclose that fact before any buy-sell agreement, hand over the Act, the bylaws and the administrative regulations on request, and provide that the agreement is not effective until 72 hours after the buyer receives those documents, during which the buyer may withdraw without penalty. The clock only starts once you have asked for and received them — a buyer who never requests never receives, and the 72 hours never begin.
- A ceiling on what the association can add later. § 70-23-507 is one sentence long and easy to miss: an association of unit owners shall abide by § 70-17-901. That is the 2019 statute barring an association from imposing more onerous restrictions on the types of use of your property than existed when you bought it. Montana’s condominium owners are inside that protection, not outside it — but it is not self-executing: you must ask the association to record your exception and pay the recording fee, it is lost if you agree in writing to the new restriction, it does not pass to a later buyer for restrictions adopted before that buyer purchased, and it creates no cause of action for anything before May 9, 2019 (§ 70-17-901(1) to (5)).
Assessments, liens and foreclosure
The association’s lien for common expenses is narrower than most people expect, in two ways. It reaches only what the association, acting through its manager, actually furnished to the unit as services, labor or material lawfully chargeable as common expenses, and only for the reasonable value of those — not simply whatever the budget says you owe. And it is created by recording a claim, not automatically: § 70-23-607(2) requires a verified claim stating the account due after all just credits and offsets, the name of the owner or reputed owner, if known, and a description sufficient to identify the unit, recorded in the county and indexed like a deed. Once recorded the lien attaches to the unit and to the undivided interest in the common elements appertaining to it, and is prior to all other liens and encumbrances except tax and assessment liens and a first mortgage or trust indenture of record. That exception is the whole ball game in a foreclosure, and it is why § 70-23-610 matters: a purchaser who takes title through foreclosure of the first mortgage or trust indenture — and that purchaser’s successors and assigns — is not liable for common expenses that fell due before they acquired title. The unpaid share becomes a common expense of all the owners, including that purchaser.
Selling does not clear the debt either. On a voluntary conveyance § 70-23-611 makes the grantee jointly and severally liable with the grantor for all unpaid charges against the grantor’s proportionate share of common expenses up to the time of the conveyance — severally is the point, because the association may pursue the buyer alone for the whole amount — without prejudice to the buyer’s right to recover from the seller.
The same section gives a buyer a way to cap that, and it is the most useful sentence on this page. On the request of a prospective purchaser the manager shall make and deliver a statement of the unpaid charges against the seller. Once that statement exists the buyer is not liable for, and the unit is not subject to a lien for, any unpaid charges above the figure stated in it. Ask for the statement in writing before closing; nothing happens automatically if you do not.
Foreclosure itself follows the general lien machinery: § 70-23-608(1) says the proceedings conform as nearly as possible to those for foreclosing liens under Title 71, chapter 3, part 5, and may be brought by the manager. The association does not have to choose one route — § 70-23-608(2) lets it sue for a money judgment for unpaid common expenses without foreclosing or waiving the lien. Where the bylaws so provide, § 70-23-609 allows a receiver and the payment of reasonable rent while a foreclosure suit is pending.
How it fits with Montana’s other community laws
This Act is the condominium half of Montana law. The covenant rules that reach every community — the restriction on new use limits, the abandonment defence, the transfer-fee ban — are in Title 70, chapter 17. If your association is incorporated, its meetings, voting, board and records come from the Montana Nonprofit Corporation Act. Housing-discrimination questions fall under Title 49, chapter 2 and the federal Fair Housing Act. Return to the Montana HOA laws hub for the full set.
Contents · 61 sections ▾
- Part 1 · General Provisions
- § 70-23-101 Short title
- § 70-23-102 Definitions
- § 70-23-103 Applicability -- submission by declaration required -- optional declaration for townhouses
- Part 2 · Regulation of Unit Sales Prior to Construction (Repealed)
- § 70-23-201 Repealed
- § 70-23-202 Repealed
- § 70-23-203 Repealed
- § 70-23-204 Repealed
- § 70-23-205 Repealed
- § 70-23-206 Repealed
- Part 3 · Creation -- Declaration and Bylaws
- § 70-23-301 Contents of declaration
- § 70-23-302 Preliminary declaration
- § 70-23-303 Name of property -- similarity prohibited
- § 70-23-304 Declaration to be approved by county before recording
- § 70-23-305 Recording of declaration
- § 70-23-306 Floor plans recorded with declaration -- certification
- § 70-23-307 Bylaws -- adoption, recording, and amendment
- § 70-23-308 Contents of bylaws
- § 70-23-309 Association of unit owners -- remote meetings
- Part 4 · Nature of the Ownership Interest
- § 70-23-401 Property status of the unit
- § 70-23-402 Exclusive ownership and possession of unit -- joint ownership
- § 70-23-403 Common elements -- undivided interest of unit owner
- § 70-23-404 Common elements -- undivided interest to remain attached to unit
- § 70-23-405 Common elements to remain undivided -- partition prohibited
- Part 5 · Rights and Duties Incidental to Unit Ownership
- § 70-23-501 Common profits and expenses
- § 70-23-502 Certain work on unit by owner prohibited
- § 70-23-503 Common elements -- use by unit owner
- § 70-23-504 Maintenance and improvement of common elements
- § 70-23-505 Abandonment or waiver of use not to effect exemption
- § 70-23-506 Compliance with bylaws, rules, and covenants required -- action
- § 70-23-507 Restriction on covenants by association of unit owners
- Part 6 · Conveyances, Liens, and Common Expenses
- § 70-23-601 Contents of deed or lease of unit
- § 70-23-602 Liens to be satisfied or released at time of first conveyance
- § 70-23-603 Lien allowable against unit not against the property
- § 70-23-604 Construction lien -- no effect on nonconsenting owner -- exception
- § 70-23-605 Lien effective against two or more units -- release from
- § 70-23-606 Records of receipts and expenditures affecting common elements -- inspection
- § 70-23-607 Claim for common expenses -- priority of lien -- contents -- recording
- § 70-23-608 Foreclosure of lien under claim for common expenses -- action without foreclosure
- § 70-23-609 Foreclosure on unit -- payment of rent -- purchase of unit by manager
- § 70-23-610 Purchaser at foreclosure sale not totally liable for prior common expenses
- § 70-23-611 Joint liability of grantor and grantee for unpaid common expenses
- § 70-23-612 Insurance of building -- premiums as common expenses
- § 70-23-613 Disclosure by seller -- seller to furnish documents -- delay period
- Part 7 · Taxation and Exemptions (Repealed)
- § 70-23-701 Repealed
- § 70-23-702 Repealed
- § 70-23-703 Repealed
- Part 8 · Removal of Property From Unit Ownership Act
- § 70-23-801 Removal from chapter -- recorded instrument -- consent of lienholders
- § 70-23-802 Obsolete property -- restoration or sale -- removal from chapter
- § 70-23-803 Damage to property -- decision not to repair or rebuild -- removal from chapter
- § 70-23-804 Effect of removal -- ownership in common -- liens
- § 70-23-805 Effect of removal -- subject to partition -- sale
- § 70-23-806 Removal no bar to resubmission
- Part 9 · Actions and Process
- § 70-23-901 Actions -- service of process
- § 70-23-902 Change of agent for service of process
- Part 10 · Enforcement and Penalty (Repealed)
- § 70-23-1001 Repealed
- § 70-23-1002 Repealed
- Part 11 · Conversion of Condominium to Townhouse
- § 70-23-1101 Conversion of condominium to townhouse
- § 70-23-1102 Notice of intent
- § 70-23-1103 Consent by unit owner on behalf of lienholder
- § 70-23-1104 Effect of conversion
- § 70-23-1105 Nonapplicability -- building codes -- zoning regulations
This chapter may be cited as the “Unit Ownership Act”.
History: En. Sec. 1, Ch. 120, L. 1965; R.C.M. 1947, 67-2301.
In this chapter, unless the context requires otherwise, the following definitions apply:
(1) “Association of unit owners” means all the unit owners acting as a group in accordance with the declaration and bylaws.
(2) “Borrower” means a mortgagor, grantor as defined in 71-1-303, or other debtor.
(3) “Building” means a multiple-unit building or buildings comprising a part of the property.
(4) “Common elements” means the general common elements and the limited common elements.
(5) “Common expenses” means:
(a) expenses of administration, maintenance, repair, or replacement of the common elements;
(b) expenses agreed upon as common by all the unit owners; and
(c) expenses declared common by 70-23-610 and 70-23-612 or by the declaration or the bylaws of the particular condominium.
(6) “Community land trust” means a nonprofit organization under section 501(c)(3) of the Internal Revenue Code that holds title to land beneath individually owned units, including but not limited to single-family homes, townhomes, condominiums, and multiunit rental properties for the purpose of preserving affordable housing.
(7) “Condominium” means the ownership of single units with common elements located on property submitted to the provisions of this chapter. The term does not include a townhome or a townhouse.
(8) “Conversion” means a change in the character of residential real property from one or more parcels of land with attached condominium units to one or more parcels of land with attached townhome or townhouse units without a change to the undivided interest of the unit owners.
(9) “Declaration” means the instrument by which the property is submitted to the provisions of this chapter.
(10) “General common elements”, unless otherwise provided in a declaration or by consent of all the unit owners, means:
(a) the land on which the building is located, except any portion of the land included in a unit or made a limited common element by the declaration;
(b) the foundations, columns, girders, beams, supports, mainwalls, roofs, halls, corridors, lobbies, stairs, fire escapes, entrances, and exits of the building;
(c) the basements, yards, gardens, parking areas, and outside storage spaces, private pathways, sidewalks, and private roads;
(d) installations of central services such as power, light, gas, hot and cold water, heating, refrigeration, air conditioning, waste disposal, and incinerating;
(e) the elevators, tanks, pumps, motors, fans, compressors, ducts, and in general all apparatus and installations existing for common use;
(f) the premises for the lodging of janitors or caretakers of the property; and
(g) all other elements of the building necessary or convenient to its existence, maintenance, and safety or normally in common use.
(11) “Lienholder” means a person holding a security interest, including a mortgagee, beneficiary of a trust indenture, or other creditor who holds a mortgage, trust indenture, or other instrument that encumbers real property.
(12) “Limited common elements” means those common elements designated in the declaration or by agreement of all the unit owners as reserved for the use of a certain unit or number of units to the exclusion of the other units.
(13) “Majority” or “majority of the unit owners”, unless otherwise provided in the declaration, means the owners of more than 50% in the aggregate of the undivided ownership interests in the general common elements as the percentage of interest in the element appertaining to each unit is expressed in the declaration. Whenever a percentage of the unit owners is specified, percentage means the percentage in the aggregate of undivided ownership.
(14) “Manager” means the manager, board of managers, or other person in charge of the administration of or managing the property.
(15) “Project” means a real estate condominium project whereby a condominium of two or more units located on property submitted to the provisions of this chapter is offered or proposed to be offered for sale.
(16) “Property” means the land, all buildings, improvements, and structures on the land, and all easements, rights, and appurtenances belonging to the land that are submitted to the provisions of this chapter.
(17) “Recording officer” means the county officer charged with the duty of filing and recording deeds and mortgages or other instruments or documents affecting the title to real property.
(18) “Townhome” or “townhouse” means property that is owned subject to an arrangement under which persons own their own units and hold separate title to the land beneath their units, but under which they may jointly own the common areas and facilities.
(19) “Unit” means a part of the property including one or more rooms occupying one or more floors or a part or parts of the property intended for any type of independent use and with a direct exit to a public street or highway or to a common area or area leading to a public street or highway.
(20) “Unit designation” means the number, letter, or combination of numbers and letters designating a unit in the declaration.
(21) “Unit owner” means the person owning a unit in fee simple absolute individually or as co-owner in any real estate tenancy relationship recognized under the laws of this state. However, for all purposes, including the exercise of voting rights, provided by lease filed with the presiding officer of the association of unit owners, a lessee of a unit must be considered a unit owner.
History: En. Sec. 2, Ch. 120, L. 1965; amd. Sec. 1, Ch. 150, L. 1973; R.C.M. 1947, 67-2302; amd. Sec. 2, Ch. 274, L. 1981; amd. Sec. 1, Ch. 12, L. 1999; amd. Sec. 2, Ch. 373, L. 2011; amd. Sec. 1, Ch. 214, L. 2017; amd. Sec. 6, Ch. 323, L. 2019; amd. Sec. 1, Ch. 164, L. 2021.
(1) In order to submit any property to the provisions of this chapter, the sole owner or sole lessee or all of the owners or all of the lessees of the property shall execute, acknowledge, and record a declaration in the office of the recording officer of the county in which the property is located. The declaration must be executed in accordance with 70-23-301.
(2) A declaration for a townhome or townhouse may be executed under this section. The provisions of this chapter apply to townhomes or townhouses only if a declaration is executed under this section.
History: En. Sec. 3, Ch. 120, L. 1965; amd. Sec. 2, Ch. 150, L. 1973; R.C.M. 1947, 67-2303; amd. Sec. 5, Ch. 373, L. 2011.
Sec. 3, Ch. 12, L. 1999.
History: En. 67-2303.1 by Sec. 3, Ch. 150, L. 1973; R.C.M. 1947, 67-2303.1.
Sec. 3, Ch. 12, L. 1999.
History: En. 67-2303.2 by Sec. 4, Ch. 150, L. 1973; R.C.M. 1947, 67-2303.2.
Sec. 3, Ch. 12, L. 1999.
History: En. 67-2303.3 by Sec. 5, Ch. 150, L. 1973; R.C.M. 1947, 67-2303.3.
Sec. 3, Ch. 12, L. 1999.
History: En. 67-2303.4 by Sec. 6, Ch. 150, L. 1973; R.C.M. 1947, 67-2303.4; amd. Sec. 11, Ch. 115, L. 1979.
Sec. 3, Ch. 12, L. 1999.
History: En. 67-2303.5 by Sec. 7, Ch. 150, L. 1973; R.C.M. 1947, 67-2303.5.
Sec. 3, Ch. 12, L. 1999.
History: En. 67-2303.6 by Sec. 8, Ch. 150, L. 1973; R.C.M. 1947, 67-2303.6.
A declaration must contain:
(1) a description of the land, whether leased or in fee simple, on which the building is located or is to be located;
(2) the name by which the property will be known and a general description of the building, including the number of stories and basements, the number of units, and the principal materials of which it is constructed;
(3) the unit designation, location, approximate area of each unit, and any other data necessary for proper identification;
(4) a description of the general common elements and the percentage of the interest of each unit owner in the common elements;
(5) a description of the limited common elements, if any, stating to which units their use is reserved and in what percentage;
(6) a statement of the use for which the building and each of the units is intended;
(7) the name of a person to receive service of process in the cases provided in 70-23-901 and the residence or place of business of the person which must be within the county in which the property is located;
(8) an exhibit containing certification from the applicable local government that the condominiums, townhomes, or townhouses are either exempt from review under 76-3-203 or have been approved following review under Title 76, chapter 3, parts 5 and 6; and
(9) any other details regarding the property that the person executing the declaration considers desirable.
History: En. Sec. 14, Ch. 120, L. 1965; amd. Sec. 11, Ch. 150, L. 1973; R.C.M. 1947, 67-2314; amd. Sec. 1, Ch. 446, L. 2009; amd. Sec. 3, Ch. 373, L. 2011.
A preliminary declaration, setting forth as many of the particulars required by 70-23-301 as may then be practicable, may be recorded before construction of the building described in the declaration is completed. The preliminary declaration shall not relieve the owner from the necessity of filing the declaration as required by 70-23-301.
History: En. Sec. 15, Ch. 120, L. 1965; R.C.M. 1947, 67-2315.
No property shall bear a name using a word which is the same as, similar to, or pronounced the same as a word in the name of any other property or subdivision in the same county, except for the words “apartment”, “motel”, “building”, “court”, “place”, or similar words.
History: En. Sec. 16, Ch. 120, L. 1965; R.C.M. 1947, 67-2316.
Before a declaration may be recorded in the county in which the property is located, it must be approved by the county. A declaration must be approved unless:
(1) the name does not comply with 70-23-303; and
(2) all taxes and assessments due and payable have not been paid.
History: En. Sec. 17, Ch. 120, L. 1965; amd. Sec. 40, Ch. 391, L. 1973; R.C.M. 1947, 67-2317; amd. Sec. 135, Ch. 27, Sp. L. November 1993; amd. Sec. 1, Ch. 279, L. 1997; amd. Sec. 1, Ch. 308, L. 2023.
(1) When a declaration is made and approved as required, it must, upon the payment of the fees provided by law, be recorded by the recording officer. The fact of recording and the date of recording must be entered on the declaration.
(2) At the time of recording a declaration, the person offering it for record shall also file a copy, certified by the recording officer to be a true copy, with the department of revenue.
(3) If the property is located in a city or town, a copy of the declaration only must also be filed with the city or town clerk at the time of recording.
History: En. Sec. 18, Ch. 120, L. 1965; amd. Sec. 41, Ch. 391, L. 1973; R.C.M. 1947, 67-2318; amd. Sec. 1, Ch. 85, L. 1991; amd. Sec. 136, Ch. 27, Sp. L. November 1993.
(1) Floor plans of the building described in a declaration shall be recorded simultaneously with the declaration. The floor plans shall show the layout of each unit, including the unit designation, location and dimensions of each unit, and the common areas to which each has access.
(2) There shall be attached to the floor plans a statement of a registered architect, registered professional engineer, or registered professional land surveyor who has reviewed the floor plans, certifying that the plans are an accurate copy of the plans filed with and approved by the city and county officers having jurisdiction to issue building permits. If the plans do not include a verified statement by an architect, engineer, or surveyor that the plans fully and accurately depict the layout, location, unit designation, and dimensions of each unit as built, there shall be recorded within 30 days from the date of completion of the building or from the date of the first occupancy of the building, whichever first occurs, an amendment to the declaration to which shall be attached a verified statement of a registered architect, registered professional engineer, or registered professional land surveyor certifying that the floor plans previously filed or being filed simultaneously with the amendment fully and accurately depict the layout of the units and floors of the building and the date construction of the building was completed.
History: En. Sec. 19, Ch. 120, L. 1965; amd. Sec. 12, Ch. 150, L. 1973; R.C.M. 1947, 67-2319; amd. Sec. 1, Ch. 114, L. 1985.
(1) The unit owners of each property shall adopt bylaws to govern the administration of the property.
(2) A copy of the bylaws, certified by the presiding officer and secretary of the association, shall be recorded simultaneously with the declaration of the property to which the bylaws relate.
(3) An amendment of the bylaws shall not be effective unless approved by 75% of the unit owners and until a copy of the bylaws, as amended, certified by the presiding officer and secretary of the association of unit owners, is recorded.
History: En. Sec. 20, Ch. 120, L. 1965; R.C.M. 1947, 67-2320.
Subject to 70-1-522, the bylaws must provide for:
(1) the election from among the unit owners of a board of directors, the number of persons constituting the board, and that the terms of at least one-third of the directors expire annually, the powers and duties of the board, the compensation, if any, of the directors, the method of removal from office of the directors, and whether or not the board may engage the services of a manager or managing agent;
(2) the method of calling meetings of the unit owners and the percentage, if other than a majority as defined by 70-23-102, that constitutes a quorum;
(3) the election of a presiding officer, a secretary, and a treasurer;
(4) the maintenance, upkeep, and repair of the common elements and payment for those expenses, including the method of approving payment vouchers;
(5) the employment of personnel necessary for the maintenance, upkeep, and repair of the common elements;
(6) the manner of collecting from the unit owners their share of the common expenses;
(7) the method of adopting and of amending administrative rules governing the details of the operation and use of the common elements;
(8) restrictions on and requirements respecting the use and maintenance of the units and the use of the common elements, not included in the declaration, as are designed to prevent unreasonable interference with the use of the unit owners’ respective units and of the common elements by the several unit owners;
(9) the method of amending the bylaws subject to 70-23-307.
History: En. Sec. 21, Ch. 120, L. 1965; R.C.M. 1947, 67-2321; amd. Sec. 2, Ch. 12, L. 1999; amd. Sec. 7, Ch. 307, L. 2009.
(1) Unless the terms of the declaration or the bylaws provide otherwise, an association of unit owners may hold a meeting by remote means.
(2) For the purposes of this section, “remote means” includes telephone audio, teleconference, or videoconference.
History: En. Sec. 3, Ch. 185, L. 2021.
While the property is submitted to this chapter, a unit in the building may be individually conveyed, leased, or encumbered and may be the subject of ownership, possession, or sale and of all types of juridic acts inter vivos or mortis causa as if it were sole and entirely independent of the other units in the building of which they form a part, and the corresponding individual titles and interests shall be recordable.
History: En. Sec. 4, Ch. 120, L. 1965; amd. Sec. 9, Ch. 150, L. 1973; R.C.M. 1947, 67-2304.
(1) Each unit owner is entitled to the exclusive ownership and possession of the owner’s unit.
(2) A unit may be jointly or commonly owned by more than one person.
History: En. Sec. 5, Ch. 120, L. 1965; amd. Sec. 10, Ch. 150, L. 1973; R.C.M. 1947, 67-2305; amd. Sec. 2160, Ch. 56, L. 2009.
(1) Each unit owner shall be entitled to an undivided interest in the common elements in the percentage expressed in the declaration. Such percentage shall be in the approximate relation that the value of the unit at the date of the declaration bears to the then combined value of all the units having an interest in the particular common elements. Value need not conform to market value.
(2) The percentage of undivided interest of each unit owner in the common elements as expressed in a declaration shall not be altered unless all unit owners having an interest in the particular common element agree thereto and record an amendment to the declaration setting forth the altered percentage of each unit owner having an interest.
History: En. Sec. 6, Ch. 120, L. 1965; R.C.M. 1947, 67-2306.
The undivided interest in the common elements shall not be separated from the unit to which it appertains and shall be conveyed or encumbered with the unit even though such interest is not expressly mentioned or described in the conveyance or other instrument.
History: En. Sec. 7, Ch. 120, L. 1965; R.C.M. 1947, 67-2307(1).
The common elements shall remain undivided, and no unit owner shall bring any action for partition or division of any part thereof except as provided in 70-23-805. Any covenant to the contrary is void.
History: En. Sec. 7, Ch. 120, L. 1965; R.C.M. 1947, 67-2307(2).
The common profits of the property shall be distributed among and the common expenses shall be charged to the unit owners according to the percentage of undivided interest of each in the common elements.
History: En. Sec. 8, Ch. 120, L. 1965; R.C.M. 1947, 67-2308.
A unit owner may not make a repair or alteration or perform any other work on the owner’s unit that would jeopardize the soundness or safety of the property, reduce the value of the property, or impair any easement or hereditament unless the consent of all the other unit owners affected is first obtained.
History: En. Sec. 9, Ch. 120, L. 1965; R.C.M. 1947, 67-2309; amd. Sec. 2161, Ch. 56, L. 2009.
Each unit owner may use the common elements in accordance with the purposes for which they are intended but may not hinder or encroach upon the lawful rights of the other unit owners.
History: En. Sec. 10, Ch. 120, L. 1965; R.C.M. 1947, 67-2310.
(1) The necessary work of maintenance, repair, and replacement of the common elements and additions or improvements to the common elements shall be carried out only as provided in the bylaws.
(2) The association of unit owners shall have the right, to be exercised by the manager, to have access to each unit as may be necessary for the maintenance, repair, or replacement of the common elements or to make emergency repairs therein necessary for the public safety or to prevent damage to the common elements or to another unit.
History: En. Sec. 11, Ch. 120, L. 1965; R.C.M. 1947, 67-2311.
A unit owner may not be exempted from liability for the owner’s contribution towards the common expenses by waiver of the use or enjoyment of any of the common elements or by abandonment of the owner’s unit.
History: En. Sec. 12, Ch. 120, L. 1965; R.C.M. 1947, 67-2312; amd. Sec. 2162, Ch. 56, L. 2009.
Except as provided in 70-1-522, each unit owner shall comply with the bylaws and with the rules adopted pursuant to the bylaws and with the covenants, conditions, and restrictions in the declaration or in the deed to the owner’s unit. Failure to comply with the bylaws, rules, covenants, conditions, and restrictions is grounds for an action maintainable by the association of unit owners or by an aggrieved unit owner.
History: En. Sec. 13, Ch. 120, L. 1965; R.C.M. 1947, 67-2313; amd. Sec. 2163, Ch. 56, L. 2009; amd. Sec. 8, Ch. 307, L. 2009.
An association of unit owners shall abide by the provisions of 70-17-901.
History: En. Sec. 2, Ch. 339, L. 2019.
Except as provided in 70-1-522, the deed or lease of a unit must contain:
(1) a description of the land, the name of the property, and the recording index numbers and date of recording of the declaration;
(2) the unit designation of the unit;
(3) the use for which the unit is intended;
(4) the percentages of undivided interest in the common elements appertaining to the unit;
(5) any further details the grantor and grantee or lessor and lessee may consider desirable.
History: En. Sec. 22, Ch. 120, L. 1965; amd. Sec. 13, Ch. 150, L. 1973; R.C.M. 1947, 67-2322; amd. Sec. 9, Ch. 307, L. 2009.
At the time of the first conveyance or lease of each unit following the recording of the declaration, every mortgage and other lien affecting such unit, including the undivided interest of the unit in the common elements, shall be paid and satisfied of record or the unit being conveyed or leased and its interest in the common elements shall be released therefrom by partial release duly recorded.
History: En. Sec. 23, Ch. 120, L. 1965; amd. Sec. 14, Ch. 150, L. 1973; R.C.M. 1947, 67-2323.
Subsequent to recording a declaration and while the property remains subject to this chapter, no lien shall arise or be effective against the property. During such period liens or encumbrances shall arise or be created only against each unit and the undivided interest in the common elements appertaining thereto, in the same manner and under the same conditions as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership.
History: En. Sec. 24, Ch. 120, L. 1965; R.C.M. 1947, 67-2324(1).
Labor performed or materials furnished with the consent or at the request of a unit owner or the owner’s agent, contractor, or subcontractor may not be the basis for the filing of a construction lien against the unit of any other unit owner not consenting to or requesting the labor to be performed or the materials to be furnished, except that consent must be considered given by the owner of any unit in the case of emergency repairs performed or furnished with the consent or at the request of the manager.
History: En. Sec. 24, Ch. 120, L. 1965; R.C.M. 1947, 67-2324(2); amd. Sec. 2164, Ch. 56, L. 2009.
If a lien becomes effective against two or more units, the owner of each unit subject to the lien has the right to have the owner’s unit released from the lien by payment of the amount of the lien attributable to the owner’s unit. The amount of the lien attributable to a unit and the payment required to satisfy a lien, in the absence of agreement, must be determined by application of the percentage established in the declaration. A partial payment, satisfaction, or discharge may not prevent the lienor from proceeding to enforce the lienor’s rights against any unit and the undivided interest in the common element pertaining to a unit not released by a payment, satisfaction, or discharge.
History: En. Sec. 24, Ch. 120, L. 1965; R.C.M. 1947, 67-2324(3); amd. Sec. 2165, Ch. 56, L. 2009.
(1) The manager shall keep detailed accurate records in chronological order of the receipts and expenditures affecting the common elements, itemizing the maintenance and repair expenses of the common elements and any other expenses incurred.
(2) Such records and the vouchers authorizing the payments and receipts for payments shall be available for examination at the manager’s place of business by the unit owners at convenient hours of weekdays.
History: En. Sec. 25, Ch. 120, L. 1965; R.C.M. 1947, 67-2325; amd. Sec. 2, Ch. 385, L. 1983.
(1) Whenever an association of unit owners acting through its manager furnishes to a unit any services, labor, or material lawfully chargeable as common expenses, the association of unit owners, upon complying with subsection (2) of this section, shall have a lien upon the individual unit and the undivided interest in the common elements appertaining to such unit for the reasonable value of such common expenses, and the lien shall be prior to all other liens or encumbrances upon the unit except:
(a) tax and assessment liens; and
(b) a first mortgage or trust indenture of record.
(2) An association of unit owners claiming the benefits of subsection (1) of this section shall record in the county in which the unit or some part thereof is located a claim containing:
(a) a true statement of the account due for such common expenses after deducting all just credits and offsets;
(b) the name of the owner of the unit or reputed owner, if known;
(c) a description of the property where the common expenses were furnished and the designation of the unit, sufficient for identification.
(3) The claim shall be verified by the oath of some person having knowledge of the facts and shall be filed with and recorded by the recording officer in the book kept for the purpose of recording liens filed under Title 71, chapter 3, part 5. The record shall be indexed as deeds and other conveyances are required by law to be indexed.
History: En. Sec. 26, Ch. 120, L. 1965; R.C.M. 1947, 67-2326; amd. Sec. 15, Ch. 202, L. 1987.
(1) The proceedings to foreclose liens created by 70-23-607 shall conform as nearly as possible to the proceedings to foreclose liens created by Title 71, chapter 3, part 5. The lien may be enforced by the manager acting on behalf of the association of unit owners.
(2) An action to recover a money judgment for unpaid common expenses may be maintained without foreclosing or waiving the lien securing the claim for common expenses.
History: En. Sec. 27, Ch. 120, L. 1965; R.C.M. 1947, 67-2327; amd. Sec. 16, Ch. 202, L. 1987.
(1) In any foreclosure suit against a unit, the unit owner shall be required to pay a reasonable rental for the unit if so provided in the bylaws, and the plaintiff in such foreclosure shall be entitled to the appointment of a receiver to collect the rent.
(2) The manager acting on behalf of the unit owners shall have power, unless prohibited by the declaration, to bid on the unit at the foreclosure sale and to acquire and hold, lease, mortgage, and convey the same.
History: En. Sec. 28, Ch. 120, L. 1965; R.C.M. 1947, 67-2328; amd. Sec. 6, Ch. 84, L. 1983.
When the purchaser of a unit obtains title to the unit as a result of foreclosure of the first mortgage or trust indenture, the purchaser and the purchaser’s successors and assigns are not liable for any of the common expenses chargeable to the unit that became due prior to the acquisition of title to the unit by the purchaser. The unpaid share of common expenses is a common expense of all the unit owners, including the purchaser and the purchaser’s successors and assigns.
History: En. Sec. 29, Ch. 120, L. 1965; R.C.M. 1947, 67-2329; amd. Sec. 2166, Ch. 56, L. 2009.
In a voluntary conveyance of a unit, the grantee is jointly and severally liable with the grantor for all unpaid charges against the grantor for the grantor’s proportionate share of the common expenses up to the time of the grant or conveyance, without prejudice to the grantee’s right to recover from the grantor the amounts paid by the grantee for the common expenses. However, upon request of a prospective purchaser, the manager shall make and deliver a statement of the unpaid charges against the prospective grantor, and the grantee in that case is not liable for nor is the unit when conveyed subject to a lien filed for any unpaid charges against the grantor in excess of the amount set forth in the statement.
History: En. Sec. 30, Ch. 120, L. 1965; R.C.M. 1947, 67-2330; amd. Sec. 12, Ch. 115, L. 1979; amd. Sec. 2167, Ch. 56, L. 2009.
(1) The manager as trustee for the unit owners shall, if required by the declaration, by the bylaws, or by a majority of the unit owners, insure the building against loss or damage by fire and other hazards as required, without prejudice to the right of each unit owner to insure the owner’s own unit for the owner’s own benefit.
(2) The premiums for insurance on the building are common expenses.
History: En. Sec. 31, Ch. 120, L. 1965; R.C.M. 1947, 67-2331; amd. Sec. 2168, Ch. 56, L. 2009.
(1) Whenever a person, corporation, or other legal entity constitutes a majority of the unit owners, the seller or the sellers’s agent, prior to signing any buy-sell agreement, shall give to any person purchasing or expressing a desire to purchase one of the project units notice that:
(a) the seller or other person constitutes a majority of the unit owners;
(b) any bylaws and administrative regulations governing the operation of the development and the association, as adopted by the association, have been adopted by the seller or other person acting as a majority of the unit owners; and
(c) any change in the bylaws or administrative regulations occurring while the seller or other person constitutes a majority of the unit owners may be made only with the approval of the seller or other person constituting a majority of unit owners.
(2) Upon the request of any person purchasing or expressing a desire to purchase one of the project units, the seller or the seller’s agent shall furnish to that buyer or prospective buyer, prior to signing any buy-sell agreement, a copy of the Unit Ownership Act, the bylaws of the association, and any administrative regulations governing the operation of the project or the association.
(3) Any buy-sell agreement must provide that it is not effective until 72 hours after the prospective purchaser has received the documents required in subsection (2), and during that delay, the prospective purchaser may withdraw the offer without penalty.
History: En. Sec. 1, Ch. 385, L. 1983; amd. Sec. 2169, Ch. 56, L. 2009.
Sec. 4, Ch. 452, L. 1985.
History: En. Sec. 40, Ch. 120, L. 1965; amd. Sec. 42, Ch. 391, L. 1973; R.C.M. 1947, 67-2340.
Sec. 4, Ch. 452, L. 1985.
History: En. Sec. 41, Ch. 120, L. 1965; R.C.M. 1947, 67-2341.
Sec. 4, Ch. 452, L. 1985.
History: En. Sec. 42, Ch. 120, L. 1965; amd. Sec. 43, Ch. 391, L. 1973; R.C.M. 1947, 67-2342.
All of the unit owners may remove a property from the provisions of this chapter by executing and recording an instrument to that effect if the holders of all liens affecting any of the units consent thereto or agree, in either case by instruments duly recorded, that their liens be transferred to the undivided interest of the unit owner in the property after removal from the provisions of this chapter.
History: En. Sec. 32, Ch. 120, L. 1965; R.C.M. 1947, 67-2332; amd. Sec. 3, Ch. 452, L. 1985.
Ninety percent of the unit owners may agree that the property is obsolete in whole or in part and whether or not it shall be renewed and restored or sold and the proceeds of sale distributed. If 90% of the unit owners agree to renew and restore the property, the expense thereof shall be paid by all the unit owners as common expenses. If 90% of the unit owners agree to sell the property, the property shall be considered removed from the provisions of this chapter.
History: En. Sec. 33, Ch. 120, L. 1965; R.C.M. 1947, 67-2333.
If within 60 days after the date of the damage to or destruction of all or part of the property the association of unit owners does not decide to repair, reconstruct, or rebuild, the property shall be considered removed from the provisions of this chapter.
History: En. Sec. 34, Ch. 120, L. 1965; R.C.M. 1947, 67-2334.
If the property is removed from the provisions of this chapter, as provided by 70-23-801 through 70-23-803, the property shall be considered owned in common by all the unit owners. The percentage of undivided interest of each unit owner in the property owned in common shall be the same as the percentage of undivided interest previously owned by such owner in the common elements. Liens affecting any unit shall be liens, in accordance with the then existing priorities, against the undivided interest of the unit owner in the property owned in common.
History: En. Sec. 35, Ch. 120, L. 1965; R.C.M. 1947, 67-2335.
If the property is removed from the provisions of this chapter, as provided in 70-23-801 through 70-23-803, it shall be subject to an action for partition at the suit of any unit owner. The net proceeds of sale, together with the net proceeds of the insurance on the property, if any, shall be considered as one fund and shall be divided among the unit owners in proportion to their respective undivided interests after first paying out of the respective shares of the unit owners, to the extent sufficient for the purpose, all liens on the undivided interest in the property owned by each unit owner.
History: En. Sec. 36, Ch. 120, L. 1965; R.C.M. 1947, 67-2336.
The removal of the property from the provisions of this chapter shall in no way bar its resubmission.
History: En. Sec. 37, Ch. 120, L. 1965; R.C.M. 1947, 67-2337.
(1) Actions may be brought on behalf of two or more of the unit owners, as their respective interests may appear, by the manager with respect to any cause of action relating to the common elements or more than one unit.
(2) Service of process on two or more unit owners, in any action relating to the common elements or more than one unit, may be made on the person designated in the declaration to receive service of process or in duplicate on the recording officer of the county in which the declaration is filed. The recording officer shall promptly send a copy of the document served by certified or registered mail to the person designated in the declaration to receive service of process.
(3) At the time of service on the recording officer, the serving party shall pay to the recording officer a fee of $10 which shall be a taxable disbursement.
History: En. Sec. 38, Ch. 120, L. 1965; R.C.M. 1947, 67-2338.
If the association of unit owners wishes to designate a person other than the one named in the declaration to receive service of process in the cases provided in 70-23-901, it shall record an amendment to the declaration. The amendment must be certified by the presiding officer and the secretary of the association of unit owners and must state the name of the successor with the successor’s residence or place of business as required by 70-23-301(7) and that the person named in the amendment was designated by resolution duly adopted by the association of unit owners.
History: En. Sec. 39, Ch. 120, L. 1965; R.C.M. 1947, 67-2339; amd. Sec. 2170, Ch. 56, L. 2009.
Sec. 3, Ch. 12, L. 1999.
History: En. Sec. 15, Ch. 150, L. 1973; R.C.M. 1947, 67-2343.
Sec. 3, Ch. 12, L. 1999.
History: En. Sec. 16, Ch. 150, L. 1973; R.C.M. 1947, 67-2344.
(1) A condominium may be converted to a townhome or townhouse only if:
(a) no other structure occupies the vertical air space above or below the unit’s converted footprint;
(b) all condominium units subject to the recorded condominium declaration are simultaneously converted to townhome or townhouse units; and
(c) all of the unit owners owning units subject to the recorded condominium declaration consent to the conversion by executing and recording an instrument to that effect and adhering to the requirements of this section.
(2) If a condominium unit is affected by a lien, the unit owner shall obtain the lienholder’s written consent to the conversion. If a lienholder does not provide written consent to the conversion, the unit owner may consent on behalf of the lienholder only according to the following provisions:
(a) The unit owner shall deliver by certified mail, return receipt requested, to each affected lienholder or its servicer at the address specified in the recorded trust indenture or mortgage, the address specified in the last recorded assignment of the trust indenture or the mortgage, if any, and the address specified in the last mailed request for loan payment the following documents:
(i) written notification pursuant to 70-23-1102;
(ii) a litigation guarantee, provided that:
(A) the form of the guarantee has been approved by the insurance commissioner and is issued by a licensed title insurance producer;
(B) the guarantee was ordered on the unit by the person required to give notice; and
(C) the guarantee lists the identities and addresses of the parties of record that have an interest in or a possible claim of an interest in the unit designed to disclose all parties of record that would otherwise be necessary to name in a quiet title action;
(iii) the proposed declaration and bylaws for the converted townhomes or townhouses that:
(A) provides that the percentage of the undivided interest of each unit owner in the common area is the same as the percentage of undivided interest owned by the owner in the common elements prior to the conversion; and
(B) provides for the continuation of the prior condominium association of unit owners as a townhouse association of unit owners;
(iv) a surveyed site plan that:
(A) includes the boundaries of the footprint beneath each converted unit and any limited common elements, such as decks, patios, and walkways, that will be included in the conversion; and
(B) depicts the corners and boundaries of the property underlying each converted townhome or townhouse; and
(v) an appraisal of the fair market value of the unit presuming that the unit had been converted to a townhome or townhouse for the purpose of establishing that the fair market value of the unit as a townhome or townhouse is not less than the fair market value of the existing condominium unit.
(b) Within 120 days of the date of the mailing in subsection (2)(a), a lienholder may object only by:
(i) recording its objection with the office of the county clerk and recorder of the county in which the unit is situated; and
(ii) mailing notification of its objection by certified mail, return receipt requested, to the unit owner at the address specified on the notice of intent received pursuant to 70-23-1102.
(c) If a lienholder does not register an objection pursuant to subsection (2)(b), the lienholder is considered to have consented to the conversion after the expiration of the 120-day period.
(3) (a) Except as provided in subsection (3)(b), if the unit subject to conversion is not affected by a lien or if each lienholder has consented or is considered to have consented to the conversion pursuant to this section, the conversion is effective upon the recording of all of the following documents pertaining to each of the condominium units on the property with the office of the county clerk and recorder of the county in which the property is situated:
(i) an affidavit stating that the owner mailed the required notices of intent pursuant to 70-23-1102;
(ii) the declaration and bylaws, which must be substantially the same as the proposed declaration and bylaws specified in subsection (2)(a)(iii);
(iii) the surveyed site plan referenced in subsection (2)(a)(iv); and
(iv) evidence of the written consent of each affected lienholder. Sufficient evidence of written consent may be made through documents including but not limited to deeds, loan modifications, or the instrument reflecting a unit owner’s consent on behalf of the lienholder as provided in 70-23-1103.
(b) If a lienholder is considered to have consented pursuant to subsection (2)(c), the unit owner may record the documents within 45 days after the expiration of the 120-day period provided in subsection (2)(b).
History: En. Sec. 1, Ch. 323, L. 2019.
(1) In addition to the documents required under 70-23-1101(2)(a), the notice of intent by a unit owner to a lienholder to convert a condominium to a townhome or townhouse must contain:
(a) the date;
(b) the name and address of the borrower;
(c) the name of the lienholder; and
(d) the name of the loan servicer if loan payments on a trust indenture or mortgage are collected by a loan servicer.
(2) The notice must be in substantially the following form:
"This notice, made the ... day of ......, ...., concerns the trust indenture or mortgage attached and described as follows:
Name of borrower: ..........
Name of lienholder: ..........
Name of loan servicer: ..........
Recording information concerning the trust indenture or mortgage, including the entry number, book number, and page number: ..........
Pursuant to the Unit Ownership Act contained in Title 70, chapter 23, MCA, the undersigned unit owner intends to convert a condominium affected by a mortgage or a trust indenture located at .......... to a townhome or townhouse.
Unless the lienholder within 120 days of the date of this notice records its objection pursuant to 70-23-1101, MCA, with the office of the county clerk and recorder of the county in which the property is situated and mails notification of its objection by certified mail, return receipt requested, to the unit owner at the address specified on this notice, the unit owner will consent to the conversion on behalf of the lienholder for the mortgage or trust indenture described in this notice.
Pursuant to 70-23-1101(2)(a), MCA, the unit owner has included the following attachments:
(a) a copy of the recorded trust indenture or mortgage;
(b) a litigation guarantee;
(c) the proposed declaration and bylaws for the converted townhome or townhouses;
(d) a surveyed site plan; and
(e) an appraisal of the fair market value of each unit presuming that each unit had been converted to a townhome or townhouse.
History: En. Sec. 2, Ch. 323, L. 2019.
The instrument reflecting a unit owner’s consent on behalf of the lienholder to convert a secured property from a condominium to a townhome or townhouse must be in substantially the following form:
"(Unit owner) hereby consents on behalf of (name of lienholder), whose lien is evidenced by a trust indenture or mortgage recorded in ........ County on ..... day of ...., ...., in book ...... at page ...... as entry number ...... to the following property in ........ County being converted from a condominium described as ........... to a townhome or townhouse described as ...........
The undersigned unit owner certifies as follows:
(1) In accordance with the requirements of 70-23-1101 and 70-23-1102, MCA, the unit owner has delivered to the lienholder a notice of intent by a unit owner to a lienholder to convert a condominium to a townhome or townhouse.
(2) The lienholder has not affirmatively consented to the conversion, but the unit owner did not receive a notice of objection to the conversion from the lienholder within 120 days of the date of the notice of intent to convert a condominium to a townhome or townhouse as required to object to the conversion by 70-23-1101, MCA.
History: En. Sec. 3, Ch. 323, L. 2019.
Regarding a conversion pursuant to 70-23-1101, the following provisions apply:
(1) (a) A townhome or townhouse unit, including the structural elements and land beneath the unit as described in the surveyed site plan in 70-23-1101(2)(a)(iv), must be considered to be owned in fee simple by the unit owner.
(b) A portion of the land depicted as common area on the surveyed site plan described in 70-23-1101(2)(a)(iv) must be considered to be owned in common by all of the converted townhome or townhouse unit owners. The percentage of the undivided interest of each unit owner in the common area must be considered to be the same as the percentage of undivided interest owned by the owner in the common elements prior to the conversion.
(c) A lien affecting a townhome or townhouse unit is a lien against the fee simple interest of the unit owner in subsection (1)(a) and the undivided interest in the common area described in subsection (1)(b). The conversion, by itself, may not be considered to have an effect on the existing priorities of any liens concerning the converted townhome or townhouse units.
(2) The owners, lienholders, and title insurers may rely on the amended declaration’s legal description of the unit provided by the surveyed site plan in 70-23-1101(2)(a)(iv) with regard to the future conveyance of individual townhome or townhouse units.
(3) Section 71-1-108 applies to the fee simple title to the land beneath a townhome or townhouse unit acquired by the mortgagor pursuant to the conversion.
(4) Because the amended declaration must provide for the continuation of the association of unit owners pursuant to 70-23-1101(2)(a)(iii)(B), the unit owners may not be required to form a new association of unit owners.
(5) The townhome or townhouse may not be considered removed from the provisions of this chapter solely by virtue of the conversion.
(6) If the conversion procedures in 70-23-1101 are followed, a unit owner or lienholder may not bring an action concerning the conversion, including a foreclosure based solely on the conversion, against any party associated with the conversion, including but not limited to the association of unit owners, title insurers, escrow providers, or lienholders. A person who brings an action concerning the conversion is liable for damages and attorney fees and costs to defend the action.
(7) If a foreclosure of a unit is conducted using the original condominium legal description in the trust indenture or mortgage, it will result in the foreclosure of the converted townhome or townhouse.
(8) A conversion does not constitute a removal pursuant to this chapter.
History: En. Sec. 4, Ch. 323, L. 2019.
Nothing in this part may be interpreted to modify, expand, or abrogate the applicability of state or local building codes or zoning regulations to a condominium, townhome, townhouse, or conversion.
History: En. Sec. 5, Ch. 323, L. 2019.
General information, not legal advice. Statutory text is reproduced from the Montana Code Annotated and may not reflect the most recent amendments.