Montana Condo Due Diligence Checklist

Where Montana due diligence deserves the most attention

Legal Framework

Condominiums: Governed by the Montana Unit Ownership Act, Mont. Code Ann. §70-23-101 et seq. (Title 70, Property; Chapter 23). The Act is opt-in: a property becomes subject to it only when the owner records a declaration expressly submitting the property to "unit ownership" under the chapter (§70-23-301 et seq.).

Reserve Studies and Reserve Funding

MUOA requires the association, through its bylaws, to provide for assessment and collection of common expenses (§70-23-607 / bylaws provisions), but sets no reserve-funding floor and prescribes no reserve-disclosure form.; Reserve obligations, if any, are creatures of the declaration/bylaws — many older Montana declarations are silent or impose only a vague "maintain adequate reserves" duty with no enforcement mechanism.; HB 619 (2025) improved owner access to records (financials are obtainable on request), but it did not create a reserve-study or fundin…

Structural Inspections and Building Safety

Montana has no statewide periodic-inspection mandate for condominiums — no milestone inspection, no façade/exterior-wall ordinance, no balcony-inspection law, and no post-Surfside condo-safety legislation. Building safety is governed at construction/permit time and (in fire-prone areas) by WUI rules:

Insurance Requirements and Insurance-Market Risk

Rapid premium escalation. Montana homeowner insurance costs rose ~57.8% over roughly six years, including a ~10% increase in 2023, ~22.1% in 2024, and ~18% in 2025 — among the steepest in the nation. Drivers: wildfire, hail, and rising rebuilding costs.; Severe wildfire exposure. Montana ranks 2nd nationally for the share of homes at high-to-extreme catastrophic-wildfire risk; roughly 29% of homes sit in high/extreme-risk zones and over half of properties carry some catastrophic-fire exposure. ~70% of recorded Montana wildfires have occurred since 2000.

Resale Disclosures and Buyer Cancellation Rights

Montana has a weak, fragmented resale-disclosure regime for community associations — there is no robust statutory condo resale certificate comparable to UCIOA states, and no statutory buyer rescission/cooling-off right tied to association documents.

Assessments, Special Assessments, and Borrowing

`special_assessment_pending` – Board has proposed/approved a special assessment.; `insurance_driven_special_assessment` – Special tied to wildfire/wind-hail deductible or premium spike (Montana-specific).; `no_statutory_assessment_cap` – No Montana cap on regular/special increases (declaration is the only limit).; `assessment_increase_trend` – Year-over-year dues escalation (often insurance-driven).