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Montana

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Montana — Tax & Mortgage Foreclosure

Legal information, not legal advice. Verify against the cited primary sources before acting. Last verified: 2026-06-10.

Montana is a tax-lien state with a distinctive assignment model. The county treasurer does not auction liens to the public at the delinquency stage. Instead, after taxes go delinquent the county itself becomes the possessor of the tax lien (the “tax lien sale” is, in effect, a sale to the county) (MCA § 15-17-125, § 15-17-214). A private investor acquires a position only by purchasing an assignment of the county’s tax lien under MCA § 15-17-323, paying the delinquent taxes, penalties, interest, and costs, and giving statutory pre-purchase notice. Redemption runs for 36 months from the date of the first day of the tax lien sale (24 months for certain vacant/unimproved special-assessment lots) (MCA § 15-18-111). If the lien is not redeemed and the assignee perfects the statutory § 15-18-212 notice, the treasurer issues a tax deed.

Critically, Montana reformed its surplus rule in 2019 by SB 253 (Ch. 317, L. 2019) — four years before tyler-v-hennepin-county (2023). For occupied residential property, the assignee no longer takes a windfall deed; instead the treasurer must sell the property at public auction (MCA § 15-18-219, § 15-18-220) and return the surplus over the tax debt to the legal titleholder of record (MCA § 15-18-221). That structure makes Montana effectively compliant with Tyler for occupied homes, though a gap remains for non-residential property, where the assignee may still take a tax deed directly under MCA § 15-18-211 without an auction or surplus return (a potential post-Tyler vulnerability flagged below). Mortgage debt is foreclosed predominantly non-judicially under the Small Tract Financing Act (trust indentures on ≤40 acres, Title 71, Ch. 1, Part 3), with no post-sale redemption and no deficiency; judicial mortgage foreclosure (Title 71, Ch. 1, Part 2) carries a 1-year statutory redemption (MCA § 25-13-802) but also bars deficiencies on owner-occupied single-family residences (Chunkapura).

0. Identity & Classification

  • Recording unit: county (count: 56). [Source: Montana Governor’s Office official press release and Montana State Library — “Governor Gianforte Visits Each of Montana’s 56 Counties,” news.mt.gov; Montana State Library county area table, msl.mt.gov/geoinfo/geography/geography_facts/area_of_montana_counties — both confirming 56 counties, retrieved 2026-06-10]
  • Tax sale type: tax lien (certificate) with assignment. The county is the default possessor of the lien (MCA § 15-17-125); investors buy an assignment (MCA § 15-17-323). For occupied residences the back end converts to a public-auction tax-deed with surplus return (MCA § 15-18-219 to -221). [Source: mca.legmt.gov — § 15-17-125, § 15-17-323, § 15-18-219/-220/-221]
  • Tax foreclosure process: administrative — the county treasurer issues the tax deed (or conducts the auction) after statutory notice; no court action is required to vest title. A separate quiet-title action is available/used to clear title (MCA § 15-18-411). [Source: mca.legmt.gov — § 15-18-211, § 15-18-411]
  • Mortgage foreclosure process: both — predominantly non-judicial trustee’s sale under the Small Tract Financing Act (Title 71, Ch. 1, Part 3); judicial foreclosure available under Title 71, Ch. 1, Part 2.
  • Selling authority: county treasurer (tax lien possession, assignment, tax deed, and § 15-18-220 auction); trustee (deed-of-trust / trust-indenture sale); sheriff (judicial / execution sale).
  • Statutory home: Tax liens — Title 15, Ch. 17 — https://mca.legmt.gov/bills/mca/title_0150/chapter_0170/parts_index.html ; Tax deeds / redemption / surplus — Title 15, Ch. 18 — https://mca.legmt.gov/bills/mca/title_0150/chapter_0180/parts_index.html ; Small Tract Financing Act — Title 71, Ch. 1, Part 3 — https://mca.legmt.gov/bills/mca/title_0710/chapter_0010/part_0030/sections_index.html
  • Tyler v. Hennepin compliance: reformed_post_Tyler / effectively compliant pre-Tyler (residential). SB 253 (Ch. 317, L. 2019) created the public-auction + surplus-return mechanism for occupied residential property in MCA § 15-18-219 through § 15-18-221, returning surplus to the “legal titleholder of record” — enacted before Tyler (2023). Open gap: non-residential property may still be deeded directly to the assignee under § 15-18-211 without auction/surplus, which is the residual Tyler exposure. [Source: mca.legmt.gov — § 15-18-221 History “En. Sec. 3, Ch. 317, L. 2019; amd. Sec. 9, Ch. 17, L. 2021”]

1. Tax Sale Mechanics

  • What is sold: a tax lien; the county is the possessor by default (MCA § 15-17-125). Investors acquire by assignment (MCA § 15-17-323).
  • Bidding method: not a competitive auction at the lien stage — assignment is essentially first-come at a fixed statutory price (delinquent taxes + penalties
    • interest + costs + assignment fee). Competitive bidding occurs only at the back-end residential tax-deed auction under § 15-18-220 (highest-bid deed). [Source: mca.legmt.gov — § 15-17-323, § 15-18-220]
  • Interest / penalty (redemption accrual): interest on delinquent taxes accrues at 5/6 of 1% per month (10% per annum), plus a 2% penalty, under MCA § 15-16-102. The redemption amount includes these plus subsequent taxes at the same rate (MCA § 15-18-112). [Source: mca.legmt.gov — § 15-18-112 (refers to rate in § 15-16-102); corroborated by Gallatin County Treasurer]
  • Minimum bid composition (residential § 15-18-220 auction): delinquent taxes, penalties, interest, costs, the amount the assignee paid (incl. fees), plus an amount equal to one-half of the most recent assessed value as the opening bid. [Source: mca.legmt.gov — § 15-18-220]
  • Sale frequency / typical month: tax lien attaches no later than the first working day in August each year (MCA § 15-17-125). Assignment notice may not be mailed earlier than August 15 (MCA § 15-17-323). [Source: mca.legmt.gov — § 15-17-125, § 15-17-323]
  • Venue / platforms: county treasurer’s office; assignment is over-the-counter (not a public online lien auction). [Source: county treasurer pages — Gallatin, Missoula]
  • Registration & deposit: assignee must give certified-mail pre-purchase notice to the assessed owner, mailed ≥2 weeks before purchase, not earlier than Aug. 15 and not more than 60 days before purchase (MCA § 15-17-323). Residential auction bidders post a deposit set in the § 15-18-220 notice.
  • Subsequent taxes (“subs”): the assignee pays later years’ delinquencies; these are added to the redemption amount with interest at the § 15-16-102 rate (MCA § 15-18-112). [Source: mca.legmt.gov — § 15-18-112]

2. Right of Redemption → see right-of-redemption

  • Pre-sale right: the owner may pay delinquent taxes at any time before a lien attaches/assigns; redemption is the operative right after attachment.
  • Post-sale period: 36 months from the date of the first day of the tax lien sale, or 60 days after the § 15-18-212 notice is given, whichever is later; 24 months for certain residential/commercial lots with delinquent special assessments and no structures (MCA § 15-18-111). [Source: mca.legmt.gov — § 15-18-111]
  • Who may redeem: the owner, the holder of an unrecorded or improperly recorded interest, the occupant, or any interested party (mortgagees, contract vendors, recorded lienholders) (MCA § 15-18-111). [Source: mca.legmt.gov — § 15-18-111]
  • Amount formula: property tax lien amount + penalties + interest (10%/yr; 5/6 of 1% per month) + costs + subsequent taxes at the same rate, plus the assignment fee (MCA § 15-18-112, § 15-16-102). [Source: mca.legmt.gov — § 15-18-112]
  • Premium to certificate holder: none beyond statutory interest/penalty; Montana does not bid down interest, so the holder earns the fixed § 15-16-102 rate.
  • Procedure: redemptioner pays the county treasurer; the treasurer files the redemption (MCA § 15-18-113) and distributes proceeds (MCA § 15-18-114). [Source: mca.legmt.gov — § 15-18-113, § 15-18-114]
  • Extinguishment: the right ends when the redemption period expires and the treasurer issues a tax deed (or, for residences, conducts the § 15-18-220 auction). Defective § 15-18-212 notice voids the deed (see Module 6).
  • Special tolling: the § 15-18-411 quiet-title statute contains provisions for indigent / disabled owners; SCRA and bankruptcy operate as federal overlays. See bankruptcy-automatic-stay, scra-protections. [Detail flagged in needs_verification.]

3. Surplus / Excess Proceeds → see surplus-funds, third-party-recovery-rules

  • Belongs to: the legal titleholder of record (former owner), for surplus from a § 15-18-220 residential tax-deed auction (MCA § 15-18-221(3)). [Source: mca.legmt.gov — § 15-18-221]
  • Claim waterfall (residential auction proceeds, MCA § 15-18-221):
    1. To the assignee, if the deed is bought by someone else: the amount paid for the assignment (delinquent taxes, penalties, interest, costs) plus all amounts paid under § 15-18-219(2);
    2. Surplus to the legal titleholder of record, distributed by the treasurer within 30 days of receiving the purchaser’s payment, regardless of residency. [Source: mca.legmt.gov — § 15-18-221(2)–(3)]
  • Filing venue: county treasurer of the county where the property lies (the treasurer distributes automatically to the titleholder of record under § 15-18-221(3); no adversarial claim petition is specified in the section).
  • Claim deadline: the current § 15-18-221 imposes no claimant deadline — the treasurer must pay the titleholder within 30 days of receiving payment. If the titleholder cannot be paid, surplus held by a county treasurer is presumed abandoned and becomes unclaimed property after 5 years under MCA § 70-9-803. [Source: mca.legmt.gov — § 15-18-221, § 70-9-803]
  • Escheat: via the Uniform Unclaimed Property Act — unclaimed treasurer-held surplus is reported/delivered to the Department of Revenue (administrator) and is reclaimable by the owner indefinitely under Title 70, Ch. 9, Part 8. [Source: mca.legmt.gov — § 70-9-803; revenue.mt.gov unclaimed-property]
  • Documentation required: proof of identity / titleholder status to the treasurer; for unclaimed-property reclamation, a claim through the DOR portal. [Detail of treasurer-level documentation flagged in needs_verification.]
  • Third-party recovery (governs whether a surplus-recovery agent may operate):
    • fee_cap_pct: null — Montana sets no fixed percentage cap; instead an “unconscionable” fee in a locate/recovery agreement is unenforceable, and the owner or the administrator may sue to reduce it (MCA § 70-9-825).
    • licensing_required: no specific surplus-recovery license is identified; Montana regulates the agreement, not a finder license (flagged for verification of any private-investigator/finder registration).
    • assignment_of_claim_allowed: the § 15-18-221 surplus runs to the “titleholder of record”; assignment of an unclaimed-property claim is governed by § 70-9-825’s agreement rules.
    • cooling_off_period: a locate/recovery agreement is void and unenforceable if entered into during the period from when the property is presumed abandoned until 24 months after it is delivered to the administrator (MCA § 70-9-825).
    • contract_disclosure_rules: after that window, the agreement is enforceable only if it is in writing, signed by the apparent owner, clearly states the nature of the property and services, and states the value of the property before and after the fee is deducted (MCA § 70-9-825).
    • prohibited_practices: unconscionable compensation (reducible/voidable); agreements within the statutory void window; non-conforming (unsigned / non-disclosing) agreements. [Source: mca.legmt.gov — § 70-9-825]
    • citation: MCA § 70-9-825 (Agreement to locate property), § 70-9-803.
  • Notice to former owner required? Yes — pre-deed § 15-18-212 certified-mail notice; and the § 15-18-221 surplus is paid to the titleholder by the treasurer. [Source: mca.legmt.gov — § 15-18-212, § 15-18-221]

▸ For Investors / Operators — Montana’s assignment model converts on the back end: for an occupied residence the treasurer auctions the parcel (MCA § 15-18-220) and returns surplus to the titleholder (§ 15-18-221), while a non-residential parcel may be deeded directly to the assignee (§ 15-18-211). Before committing capital, weigh the redemption risk (§2/2b — the 36-month period (24 months for certain vacant special-assessment lots) runs from the first day of the tax lien sale, and the assignment certificate is freely reassignable under § 15-17-323(3)), the path to marketable/insurable title (§5b — a § 15-18-411 quiet-title action in District Court, with the § 15-18-413 curative bar), and which liens survive the deed (§7b — § 15-18-214 carves out future tax and special-assessment liens, servitudes, and government interests, plus the IRS § 7425 120-day redemption).

▸ For Former Owners — When an occupied Montana residence is sold at the § 15-18-220 public auction for more than the tax debt, the surplus over the assignee’s reimbursement belongs to the legal titleholder of record and is paid by the treasurer within 30 days of the purchaser’s payment, regardless of residency (MCA § 15-18-221). No claimant deadline applies at the treasurer stage; if the titleholder cannot be paid, the surplus is presumed abandoned after 5 years and routed to the Department of Revenue as unclaimed property (§ 70-9-803), where it remains reclaimable.

4. Mortgage Foreclosure

  • Process: both. Most residential loans use a trust indenture (deed of trust) on ≤40 acres foreclosed non-judicially by trustee’s sale under the Small Tract Financing Act (MCA § 71-1-304 et seq.). Traditional mortgages and larger tracts are foreclosed judicially (Title 71, Ch. 1, Part 2).
  • Timeline (non-judicial / STFA):
    • Notice of sale: recorded and mailed by certified mail at least 120 days before the trustee’s sale (MCA § 71-1-315);
    • Posting: on the property at least 20 days before the sale;
    • Publication: once each week for 3 successive weeks, last publication ≥20 days before the sale (MCA § 71-1-315);
    • Sale: public auction to the highest bidder by the trustee. [Source: mca.legmt.gov — § 71-1-315]
  • Reinstatement right: Yes — the grantor may cure by paying the entire amount then due (plus costs, trustee/attorney fees) at any time before the trustee’s sale, which reinstates the obligation (MCA § 71-1-312). [Source: mca.legmt.gov — § 71-1-312]
  • Redemption after sale:
  • Deficiency judgment:
    • STFA trustee’s sale: prohibited — “no other or further action … or judgment … for any deficiency” (MCA § 71-1-317). [Source: mca.legmt.gov — § 71-1-317]
    • Judicial foreclosure of an owner-occupied single-family residence: also barred — First State Bank of Forsyth v. Chunkapura (1987) held the STFA’s no-deficiency quid pro quo applies even when the lender elects judicial foreclosure of such a residence. [Source: justia.com / quimbee — 226 Mont. 54, 734 P.2d 1203]
  • Surplus distribution (STFA non-judicial foreclosure): governed by MCA § 71-1-316. Proceeds applied in order: (1) costs and expenses of sale plus reasonable trustee’s and attorney fees; (2) the debt secured by the trust indenture. Any surplus is deposited by the trustee with the county clerk and recorder, then transferred to the county treasurer. Interested parties (including junior lienholders and the grantor) must file a petition in district court; the court determines lien priority and directs the treasurer to disburse. Junior lienholders retain their relative priority positions in the surplus. [Source: mca.legmt.gov — § 71-1-316, https://mca.legmt.gov/bills/mca/title_0710/chapter_0010/part_0030/section_0160/0710-0010-0030-0160.html, retrieved 2026-06-10]
  • Sale officer: trustee (STFA non-judicial); sheriff (judicial / execution sale).

5. Sale Procedure Playbooks

Treasurer / tax-lien & tax-deed procedure → see treasurer-sale

  1. Taxes go delinquent; treasurer attaches the tax lien by the first working day in August and prepares a tax lien certificate filed with the clerk & recorder (MCA § 15-17-125).
  2. The county is the possessor of the lien (MCA § 15-17-125, § 15-17-214).
  3. An investor purchases an assignment (MCA § 15-17-323): gives certified-mail pre-purchase notice to the assessed owner (≥2 weeks before, not before Aug. 15, not >60 days before), then pays delinquent taxes, penalties, interest, costs, and the assignment fee.
  4. Owner may redeem for 36 months (24 for certain vacant lots) from the first day of the tax lien sale (MCA § 15-18-111).
  5. As the period nears expiry, the treasurer notifies the assignee (Jan. 1–31); the assignee gives § 15-18-212 certified-mail notice to occupant and each party on a litigation guarantee (May 1–30) and publishes; assignee files proof within 30 days (MCA § 15-18-212).
  6. Residential (occupied dwelling): assignee applies for a tax deed (MCA § 15-18-219, $25 fee); treasurer holds a public auction within 60 days (MCA § 15-18-220), then distributes surplus to the titleholder (MCA § 15-18-221).
  7. Non-residential: treasurer issues the tax deed to the assignee (MCA § 15-18-211, $25 + costs).
  8. Quiet title action to clear the tax-deed title (MCA § 15-18-411 to -413).

Sheriff / judicial sale → see sheriff-sale

  1. Lender files a judicial foreclosure complaint (Title 71, Ch. 1, Part 2).
  2. Decree of foreclosure; sheriff conducts an execution sale.
  3. 1-year redemption runs post-sale (MCA § 25-13-802); deficiency barred on owner-occupied single-family residences (Chunkapura).
  • Notice requirements: tax deed — § 15-18-212 certified mail + publication (per § 7-1-2121); STFA — 120-day mailed/recorded notice + 20-day posting + 3-week publication (§ 71-1-315). [Source: mca.legmt.gov — § 15-18-212, § 71-1-315]
  • Upset bid / confirmation: no North-Carolina-style upset bid; residential tax-deed sale is a one-shot public auction (§ 15-18-220). Judicial sales are subject to court confirmation/return.
  • Payment terms: auction deposit + balance per the § 15-18-220 notice; trustee’s sale is cash to highest bidder.
  • Deed issued: tax deed (quitclaim-quality; prima facie evidence of regularity under MCA § 15-18-213); trustee’s deed (STFA); sheriff’s deed (judicial). [Source: mca.legmt.gov — § 15-18-213]

6. Due Process & Notice → see due-process-notice

  • Standard: Montana requires strict compliance with the statutory tax-deed notice procedures; the owner risks losing real property, so courts construe the statutes strictly in the owner’s favor (Moran v. Robbin; Isern v. Summerfield). This aligns with mullane-v-central-hanover (“reasonably calculated”) and the actual-notice-to-record-interests rule of mennonite-v-adams.
  • Required attempts: certified mail, return receipt requested, to the occupant and each party on the litigation guarantee, plus publication (MCA § 15-18-212); proof of notice filed within 30 days.
  • Consequence of defective notice: void — a treasurer “may not legally issue a tax deed” without statutory notice; a deed issued on defective notice/proof is void (Moran v. Robbin; Isern v. Summerfield). [Source: justia/findlaw — 261 Mont. 478; 1998 MT 45]
  • Leading cases: moran-v-robbin, isern-v-summerfield, zinvest-v-gunnersfield.

7. Title & Marketability

  • Deed warranty level: tax deed conveys no warranty; it is prima facie evidence of the regularity of all prior proceedings (MCA § 15-18-213) and conveys title subject to the § 15-18-413 defect rules. [Source: mca.legmt.gov — § 15-18-213, § 15-18-413]
  • Marketable immediately? No in practice — title is clouded until a quiet-title action is completed (MCA § 15-18-411 to -413).
  • Quiet title required? Effectively yes for marketable/insurable title and to cut off challenges; the statute supplies the procedure (MCA § 15-18-411, § 15-18-412). [Source: mca.legmt.gov — § 15-18-411]
  • SOL to challenge deed: MCA § 15-18-413 provides the operative cut-off in two stages: (a) once the § 15-18-412 quiet-title notice is served, the true owner has 30 days to deposit redemption amounts or file a quiet-title action — failure to act within 30 days waives all defects (except taxes that were not actually delinquent or were paid); (b) any deed executed more than 3 years after the tax lien attachment conveys absolute title regardless of procedural defects — the 3-year period is the outer backstop. Prior to either cut-off, the void-deed rule (Moran, Isern) allows collateral attack on deeds issued on defective notice. [Source: mca.legmt.gov — § 15-18-413, https://mca.legmt.gov/bills/mca/title_0150/chapter_0180/part_0040/section_0130/0150-0180-0040-0130.html, retrieved 2026-06-10]
  • Title insurance availability: generally only after quiet title; insurers typically will not insure a raw tax-deed title. [Industry practice — flagged.]
  • Common defects: defective § 15-18-212 notice/proof; defective DOR assessment or misdirected tax bills (Zinvest v. Gunnersfield); failure to file affidavit of publication (§ 15-17-123); chain-of-title gaps.

8. Case Law (real, verified)

CaseYearTopicHolding (plain English)Source
isern-v-summerfield1998due_process, sale_procedureStrict statutory compliance is required to issue a tax deed; errors/omissions in the tax-deed process void the deed (1998 MT 45, 287 Mont. 461, 956 P.2d 28).https://caselaw.findlaw.com/court/mt-supreme-court/1087452.html
moran-v-robbin1993due_process, redemptionIf notice requirements are not met, the treasurer may not legally issue a tax deed; tax-sale proceedings must strictly comply with statute (261 Mont. 478, 863 P.2d 395).https://dojmt.gov/wp-content/uploads/1993/01/45-002.pdf
zinvest-v-gunnersfield2017sale_procedure, due_processA defective Department of Revenue tax assessment voided the tax-lien sale, so the assignee’s tax deed failed; quiet title denied (2017 MT 284, 389 Mont. 334, 405 P.3d 1270).https://www.courtlistener.com/opinion/4445486/zinvest-v-gunnersfield/
first-state-bank-of-forsyth-v-chunkapura1987mortgage_foreclosureThe Small Tract Financing Act’s no-deficiency quid pro quo applies even in judicial foreclosure of an owner-occupied single-family residence (226 Mont. 54, 734 P.2d 1203).https://www.quimbee.com/cases/first-state-bank-of-forsyth-v-chunkapura
tyler-v-hennepin-county2023surplus, due_processGovernment may not keep surplus equity beyond the tax debt; retention is an unconstitutional taking (598 U.S. 631). Montana’s § 15-18-221 residential surplus-return aligns; non-residential direct-deed track is the residual exposure.https://www.supremecourt.gov/opinions/22pdf/22-166_8n59.pdf

Note: Zinvest v. Voth, 2015 MT 65N, is a non-citable memorandum opinion (“shall not be cited and does not serve as precedent”) and is therefore excluded from the authority table; cited here only to acknowledge it exists.

9. Edge Cases (state-specific notes)

  • bankruptcy-automatic-stay — A Chapter 13 filing stays the tax-deed/auction process and can cure delinquent taxes through a plan; the § 15-18-111 period is tolled by the automatic stay (federal overlay; Montana statute is silent).
  • federal-tax-lien-redemption — The IRS holds a 120-day redemption right after a sale that discharges a federal tax lien (26 U.S.C. § 7425) — federal overlay applies in Montana.
  • heirs-property — Multiple heirs each qualify as an “owner/interested party” who may redeem under § 15-18-111; notice to all record interests is required.
  • scra-protections — Servicemembers Civil Relief Act may toll redemption / postpone sale for active-duty members (federal overlay).
  • HOA / special-assessment lots — vacant residential/commercial lots with delinquent special assessments and no structures carry the shorter 24-month redemption (MCA § 15-18-111).
  • Manufactured homes — taxed as real property if affixed to a permanent foundation, running gear removed, and a statement of intent recorded with the county clerk and recorder (MCA § 15-1-116); in that case the standard § 15-17-125 real- property tax lien mechanism applies. Taxed as personal property otherwise; the owner pays personal property tax in two installments (MCA § 15-24-202), and delinquency penalties/interest run under § 15-16-102. Reversion from real to personal property status requires the reverse process: physical removal + recorded reversal statement + all taxes paid (MCA § 15-1-118). [Source: mca.legmt.gov — § 15-1-116, https://mca.legmt.gov/bills/mca/title_0150/chapter_0010/part_0010/section_0160/0150-0010-0010-0160.html; § 15-1-118, https://mca.legmt.gov/bills/mca/title_0150/chapter_0010/part_0010/section_0180/0150-0010-0010-0180.html; § 15-24-202, https://mca.legmt.gov/bills/mca/title_0150/chapter_0240/part_0020/section_0020/0150-0240-0020-0020.html, all retrieved 2026-06-10]
  • Foreign-entity bar — a county treasurer may not sell a § 15-18-220 residential tax-deed property to a foreign entity; the bidder must prove it is a domestic entity (MCA § 15-18-220).
  • Void vs. voidable — Montana treats deeds issued on defective statutory notice as void (not merely voidable) (Moran, Isern). See void-vs-voidable.

10. Operations

Who this page is for

▸ For Investors / Operators — Start with the assignment mechanics in §1 and §2/2b: Montana sells no public lien auction at the front end — the county holds the lien (MCA § 15-17-125) and an investor buys an assignment (§ 15-17-323) with statutory pre-purchase certified-mail notice, then runs the 36-month redemption clock and the § 15-18-212 pre-deed notice. The back-end split (residential auction + surplus return vs. non-residential direct deed) and the Tyler exposure of the non-residential track are in §3 and §0. For title and lien risk see §5b (quiet title, § 15-18-413 cure) and §7b (§ 15-18-214 surviving liens, HOA non-super-priority, IRS § 7425). Restrictions — including the § 15-18-220 foreign-entity bar and the municipality-as-assignee mechanism — are in §11b.

▸ For Former Owners — Start with §3 (Surplus / Excess Proceeds): when an occupied residence is auctioned under § 15-18-220, surplus over the tax debt returns to the legal titleholder of record, paid by the treasurer within 30 days (§ 15-18-221). Your right to redeem before that point, and who may exercise it, is in §2 (36 months, or 24 for certain vacant special-assessment lots; MCA § 15-18-111). The notice the treasurer and assignee must give you appears in §5/§6 (§ 15-18-212 certified mail).

11. Meta

2b. Redemption Advanced

Assignability of the Redemption Right

Montana statutes (MCA § 15-18-111) enumerate who may redeem — “the owner, the holder of an unrecorded or improperly recorded interest, the occupant of the property, or any interested party” — but contain no express provision granting or prohibiting assignment of the redemption right as such. The right is personal-property-like in character; it belongs to the enumerated parties and is not described as freely assignable. In the absence of an express prohibition or authorization, the prevailing view under Montana equity doctrine would be that a redemptioner may assign an inchoate redemption right to another eligible party (e.g., a mortgagee already enumerated in § 15-18-111), but there is no verified statute or Montana appellate ruling expressly confirming general assignability. needs_verification: whether Montana courts have addressed assignment of a statutory redemption right under § 15-18-111.

Equitable Redemption

Montana equity recognizes the equitable right to redeem a mortgage pre-sale (the right extinguished by foreclosure), distinct from the statutory post-sale redemption period. For tax liens, the statutory scheme is exclusive: the right of redemption is created and governed entirely by MCA § 15-18-111 (statutory redemption); there is no Montana appellate decision recognizing a separate equitable redemption doctrine for tax proceedings beyond the statute. For mortgages, equitable redemption runs until the trustee’s sale under the STFA or the sheriff’s sale in judicial foreclosure — once the sale occurs, the equitable right merges into the statutory right (1-year for judicial; none for STFA). [Source: mca.legmt.gov — § 15-18-111; § 71-1-318]

Installment Redemption

Montana statutes do not authorize installment (partial) redemption; the redemptioner must pay the full amount under MCA § 15-18-112 (taxes + penalties + interest + costs + subsequent taxes). needs_verification: confirm no county-level installment plan exists.

Assignment of Tax Lien Certificate / Assignment Mid-Redemption

The assignee of a county tax lien may freely reassign the assignment certificate to any subsequent party “for any consideration whatsoever” at any time, including during the redemption period (MCA § 15-17-323(3)). The reassignment requires filing a statement with the county treasurer and the clerk and recorder naming all prior and current assignees. There is no restriction on the number of successive reassignments and no express prohibition on reassigning mid-period. [Source: mca.legmt.gov — § 15-17-323(3), retrieved 2026-06-02]

3b. Surplus Advanced

Claim Assignability

Montana’s § 15-18-221 surplus right runs automatically to the “legal titleholder of record” — the treasurer must distribute within 30 days without requiring any affirmative claim. If the surplus passes into unclaimed property (§ 70-9-803, 5-year abandonment period), the owner’s right to that unclaimed property is governed by MCA § 70-9-825, which regulates “locate/recovery agreements.” The statute does not distinguish between a full assignment of the claim and a contingency-fee recovery agreement; both are subject to the same disclosure and enforceability rules. A full outright assignment of the unclaimed-property claim by the former owner (not merely a fee agreement) would be subject to the same § 70-9-825 framework — if executed within the 24-month void window it is void; if executed after, it must meet the written-disclosure requirements. Montana has no express statute authorizing or prohibiting a full outright assignment of a § 15-18-221 surplus claim before it becomes unclaimed property; the analysis would proceed under general contract and property law. needs_verification: whether a full assignment (not a fee agreement) of a § 15-18-221 claim is treated differently from a locate agreement under Montana court decisions.

Fee Cap

Montana imposes no numerical percentage cap; the standard is “unconscionable compensation” (MCA § 70-9-825), which the court may reduce on petition. [Source: mca.legmt.gov — § 70-9-825, retrieved 2026-06-02]

Statute of Limitations on Surplus Claims

  • Period: Montana imposes no express claimant deadline for the § 15-18-221 surplus paid directly by the treasurer to the titleholder of record; the treasurer must pay within 30 days of receiving the purchaser’s payment (MCA § 15-18-221).
  • Trigger for unclaimed-property escheat: If the treasurer cannot pay the titleholder, the surplus is presumed abandoned under the catch-all provision of MCA § 70-9-803 after 5 years from the date the obligation to distribute arose.
  • Once delivered to the DOR as unclaimed property, the claim is reclaimable indefinitely under Montana’s Uniform Unclaimed Property Act (Title 70, Ch. 9, Part 8). [Source: mca.legmt.gov — § 15-18-221, § 70-9-803, retrieved 2026-06-02]

Competing Claimants

The § 15-18-221 mechanism is non-adversarial: the treasurer pays the “legal titleholder of record” directly; no competing petition process is specified in the statute. If multiple parties claim titleholder status (e.g., heir dispute, LLC dissolution), the treasurer would likely interplead the funds or require a court determination before distributing. needs_verification: no Montana appellate ruling specifically resolving a competing-claimant dispute over § 15-18-221 surplus located.

Deceased Owner Procedure

MCA § 15-18-111 allows redemption by “any interested party,” which under Montana probate law would include the personal representative of the deceased owner’s estate. For surplus: the “legal titleholder of record” language in § 15-18-221 points to the record title at the time of the tax deed; if the former owner is deceased and title passed by intestate succession or testate devise, the heir or devisee who holds record title (or the estate’s personal representative) has standing. Probate is effectively required first if title was never transferred out of the decedent’s name — the personal representative must obtain letters and marshal the estate’s assets before the surplus can be claimed. No Montana statute expressly permits a direct heir claim bypassing probate for § 15-18-221 surplus. needs_verification: confirm no small-estate affidavit pathway (MCA § 72-3-1101) is used in practice for modest surplus amounts.

Fraudulent Conveyance Exposure

An assignment of a surplus claim (once the property is in unclaimed-property status or is an account receivable) is a “transfer” subject to Montana’s Uniform Fraudulent Transfer Act, Title 31, Chapter 2, Part 3 (MCA §§ 31-2-326 through 31-2-342). Under MCA § 31-2-333, a transfer made with actual intent to hinder, delay, or defraud creditors, or made without reasonably equivalent value while the debtor is insolvent, is voidable by creditors. If a former owner assigns a large surplus claim to a recovery agent for a below-market fee while insolvent, a creditor could seek to avoid the assignment under § 31-2-333. [Source: mca.legmt.gov — §§ 31-2-333, 31-2-334, retrieved 2026-06-02]

5b. Title Advanced

Quiet Title After a Tax Deed

  • When required: Montana’s tax deed is not immediately marketable in practice. MCA § 15-18-213 makes the deed prima facie evidence of regularity, but courts routinely require a quiet-title proceeding (MCA §§ 15-18-411 through 15-18-413) before title insurers will insure and before a clear chain of title can be established. The proceeding is recommended (effectively required) for any commercial disposition or financing; it is technically optional where the purchaser holds indefinitely and relies on § 15-18-213’s prima facie presumption.
  • Action type: Judicial — the tax-deed quiet-title proceeding under MCA §§ 15-18-411/-412 is a court action, not an administrative filing.
  • Court with jurisdiction: Montana District Court of the county where the property is situated (general jurisdiction court; MCA § 15-18-411 refers to “the court”). [Source: mca.legmt.gov — § 15-18-411, retrieved 2026-06-02]
  • Typical timeline: 3–6 months from filing to judgment in an uncontested matter; longer if the true owner contests. The statute gives the true owner 30 days to deposit the redemption amount or “show cause” after service; failure to respond results in waiver (MCA § 15-18-412). needs_verification: confirm 3–6 month timeline from county-level practice.
  • Typical cost: Filing fees + attorney fees + service costs; title attorneys in Montana commonly quote $2,000–$5,000 for uncontested quiet-title actions on tax-deed properties. needs_verification: no official fee schedule — based on practitioner reports.
  • Cures all pre-sale defects? The MCA § 15-18-413 curative effect is broad: once proper notice is given and the 30-day period expires, “all defects in the tax proceedings and any right of redemption are considered waived” — except where taxes were not actually delinquent or had been paid. Pre-lien defects (chain-of-title issues predating the tax lien) are not expressly addressed and may survive. [Source: mca.legmt.gov — § 15-18-413, retrieved 2026-06-02]

Deed Seasoning

Title insurers generally require 3 or more years of seasoning (or completion of a quiet-title action) before issuing a standard owner’s or lender’s policy on a Montana tax-deed property. The 3-year threshold aligns with MCA § 15-18-413(1), which provides that a deed executed more than 3 years after the applicable tax lien attachment conveys absolute title regardless of procedural defects. Once that 3-year period has run and no court challenge is pending, the § 15-18-413 curative effect operates alongside the void-deed risk reduction, which is why insurers use that interval as the seasoning threshold. [Source: mca.legmt.gov — § 15-18-413, https://mca.legmt.gov/bills/mca/title_0150/chapter_0180/part_0040/section_0130/0150-0180-0040-0130.html, retrieved 2026-06-10. Note: specific underwriter appetites remain needs_verification — confirm with active Montana title underwriters.]

Title Insurance

  • Immediate availability: Generally not available for a raw tax-deed title.
  • Conditions for immediate coverage: Completion of a § 15-18-411 quiet-title action plus a satisfactory underwriter search; some insurers may insure after quiet-title judgment even without seasoning.
  • Insurers known to write: Stewart Title, First American, and Fidelity National Title have Montana agents who will underwrite post-quiet-title tax-deed policies. needs_verification: confirm current underwriting appetite — this is based on general knowledge of Montana title market.
  • Quitclaim or special warranty only? The tax deed itself conveys no warranty (MCA § 15-18-213). Post-quiet-title, the title-deed holder may grant a warranty deed to a subsequent purchaser.

Marketable Title Act

Montana does not have a statutory Marketable Title Act. A complete review of MCA Title 70 (Property) chapters — confirmed by fetching the Title 70 chapters index — shows no chapter titled “Marketable Title Act,” “Marketable Record Title,” or any rolling-lookback curative title statute. The chapters of Title 70 run from general property provisions through recording (Ch. 21), condominiums (Ch. 23), landlord-tenant, forcible entry/detainer, quiet title (Ch. 27–29), partition, eminent domain, and homesteads (Ch. 32). No MTA chapter exists. [Source: mca.legmt.gov — Title 70 chapters index, https://mca.legmt.gov/bills/mca/title_0700/chapters_index.html, retrieved 2026-06-10]

Judicial Confirmation Before Deed Issues

Not required for tax deeds — the county treasurer issues the deed administratively (MCA § 15-18-211 for non-residential; § 15-18-219/220 for residential auction), with no prior court order. For judicial mortgage foreclosures, a court enters a decree of foreclosure and the sheriff’s sale is subject to return and court confirmation of the sale. [Source: mca.legmt.gov — § 15-18-211, § 15-18-219, retrieved 2026-06-02]

Chain-of-Title Cure Depth

The MCA § 15-18-214 tax deed extinguishes liens and encumbrances that arose prior to the deed date, except: (a) future property tax and special assessment liens; (b) easements, covenants, restrictions, and similar servitudes; (c) government ownership. Pre-lien title defects (e.g., a forgery in the chain pre-dating the tax lien) are not expressly cured and may require a broader quiet-title action under Rule 105 of the Montana Rules of Civil Procedure. [Source: mca.legmt.gov — § 15-18-214, retrieved 2026-06-02]

5c. TRO & Injunctive Relief

Recognized Grounds

A party seeking to halt a tax or mortgage foreclosure sale in Montana may apply for a TRO/preliminary injunction on any of the following grounds, all verified in practice:

  • Notice defect — defective § 15-18-212 certified-mail or publication notice (voids the deed; Moran v. Robbin, Isern v. Summerfield).
  • Payment dispute — taxes were not actually delinquent or had been paid (MCA § 15-18-412(2) — a statutory void ground).
  • Constitutional challenge — Tyler v. Hennepin exposure for non-residential property (no surplus returned); Fourteenth Amendment due process.
  • Homestead / exemption claim — applicant asserts homestead rights or exemption from the particular tax lien process.
  • SCRA — active-duty military servicemember entitled to a stay of proceedings under 50 U.S.C. § 3953 (federal overlay).
  • Bankruptcy automatic stay — filing of a Chapter 7/11/13 petition automatically stays the sale under 11 U.S.C. § 362 (federal overlay, no state-court TRO needed).

Montana’s four-part test (MCA § 27-19-201, enacted 2023 to align with Winter v. Natural Resources Defense Council, 555 U.S. 7 (2008)):

  1. Likely to succeed on the merits;
  2. Likely to suffer irreparable harm absent relief;
  3. Balance of equities tips in applicant’s favor;
  4. Relief is in the public interest. Montana expressly rejects a sliding-scale or “serious questions” test (MCA § 27-19-201(3)). [Source: mca.legmt.gov — § 27-19-201, retrieved 2026-06-02]

Court with Jurisdiction

Montana District Court of the county where the property is located (courts of general jurisdiction). An emergency TRO may be sought ex parte before the judge; a preliminary injunction hearing follows with notice to the adverse party (MCA § 27-19-301). For non-judicial STFA foreclosures, the party must file in District Court to obtain a TRO — there is no administrative mechanism to halt a trustee’s sale.

Bond Required

Yes — MCA § 27-19-306 requires the applicant to furnish a written undertaking (bond) in an amount the judge considers proper (no statutory floor or ceiling for general civil TROs). The bond compensates the adverse party for damages if the TRO is later dissolved. Bond may be waived “in the interest of justice” at the court’s discretion (MCA § 27-19-306). [Source: mca.legmt.gov — § 27-19-306, retrieved 2026-06-02]

Emergency Timeline

Filing a TRO motion with supporting affidavits and proposed order typically yields a same-day or next-business-day ruling from the assigned District Court judge in an emergency. A hearing on the preliminary injunction follows within a few days to a week. needs_verification: confirm typical timeline from Montana District Court clerks; practice varies by county.

Effect on Completed Sale

For a tax-deed auction under § 15-18-220 that has been completed (gavel fell, payment received, deed issued): a TRO issued after the deed issues does not automatically void the deed. The proper remedy is a direct action to void the deed on the underlying defect grounds. Montana courts treat notice defects as rendering a deed void ab initio (Moran, Isern) — meaning the deed can be challenged even after it issues — but a court judgment is required.

For non-judicial STFA trustee’s sales: once the trustee’s deed is delivered to the purchaser who paid in good faith, the sale generally cannot be unwound absent fraud. needs_verification: confirm whether Montana recognizes a post-sale TRO or whether a new action to set aside the deed is the exclusive remedy.

Non-Judicial Foreclosure Notes

In STFA non-judicial trustee’s sales, there is no administrative mechanism to halt the sale; the grantor must file in District Court for injunctive relief before the sale date. Courts are generally reluctant to enjoin a STFA sale absent clear evidence of procedural defect or non-default, given the statutory quid pro quo (no deficiency in exchange for streamlined process).

7b. Lien Survival & Purchaser Exposure

IRS 120-Day Redemption Right

Applies: Yes. Under 26 U.S.C. § 7425(d), if a federal tax lien has been properly noticed under § 7425(b) (IRS given notice of the tax sale at least 25 days in advance), the United States has a 120-day right of redemption from the date of the state tax sale. If the IRS was not given proper § 7425(b) notice, the federal tax lien is not discharged by the state sale at all. This is a federal overlay applicable in all states including Montana. The purchaser of a Montana tax-deed (or tax-lien assignment) must therefore: (1) search for federal tax liens with the IRS and county clerk & recorder; (2) provide proper § 7425(b) notice if a federal lien exists; and (3) hold for 120 days post-sale before the IRS redemption right expires. [Source: 26 U.S.C. § 7425(d) — statutory text; IRS Publication on federal tax lien redemption; also noted in Module 9 edge cases above.]

HOA Super-Priority

Does not exist in Montana as a true super-priority over first mortgages. MCA § 70-23-607 (Unit Ownership Act / condominiums) gives HOA assessment liens priority over all other liens except (a) tax and assessment liens, and (b) first mortgages or trust indentures of record. Therefore:

  • HOA assessment lien is subordinate to first mortgages (no super-priority as in Nevada or Washington).
  • HOA assessment lien is subordinate to property tax liens.
  • Survives tax sale? Because the HOA lien ranks junior to the property tax lien, the tax deed under MCA § 15-18-214 extinguishes junior liens — the HOA assessment lien is likely extinguished by a Montana tax deed, though § 15-18-214’s exception for “special, rural, local improvement, irrigation, or drainage assessment” liens levied post-deed may preserve post-deed HOA assessments. needs_verification: whether a condominium HOA assessment lien is treated as a “local improvement” lien surviving under § 15-18-214 — no Montana appellate ruling located.
  • Survives mortgage foreclosure? MCA § 70-23-610 explicitly provides that a purchaser at a first mortgage foreclosure sale is not liable for HOA common expenses that accrued before acquisition. Pre-foreclosure HOA assessments are thus not collectible from the mortgage foreclosure purchaser (they become a common obligation of remaining unit owners). [Source: mca.legmt.gov — § 70-23-607, § 70-23-610, retrieved 2026-06-02]

CERCLA / Environmental Liens

Federal CERCLA lien: Under 42 U.S.C. § 9607(l), a federal CERCLA lien on a contaminated property is not automatically discharged by a state tax sale. The federal lien has the priority of a federal tax lien under 26 U.S.C. § 6323 and may survive a state tax proceeding if the IRS (or EPA) was not given proper notice under § 7425. A prudent purchaser must search CERCLA databases (EPA CERCLIS, NPL) and the county clerk & recorder for any EPA lien notice.

State environmental super-lien: Montana’s hazardous substance remedial action statute (MCA § 75-10-720) creates a state lien on “all property and rights to property” of a person determined liable for cleanup costs, arising when notice is filed with the county clerk and recorder. The statute contains no language granting super-priority over existing tax liens, mortgages, or other encumbrances — it is a standard recorded lien without an expressed super-priority position. Whether it survives a tax deed under § 15-18-214 depends on whether it was perfected (filed) before or after the tax lien attachment, and no Montana appellate ruling expressly addressing that priority question was located. A prudent purchaser should treat a recorded § 75-10-720 state environmental lien as a surviving risk requiring due diligence. [Source: mca.legmt.gov — § 75-10-720, https://mca.legmt.gov/bills/mca/title_0750/chapter_0100/part_0070/section_0200/0750-0100-0070-0200.html, retrieved 2026-06-10; no super-priority language found in statute text]

Municipal Code / Blight Liens

Montana has no confirmed statewide “blight lien” or municipal code-violation lien statute with super-priority. Municipal special assessments for local improvements (sidewalk repair, weed control, etc.) may be collected through the property tax mechanism and survive a tax deed under MCA § 15-18-214 (which excepts “special, rural, local improvement, irrigation, or drainage assessment” liens levied post-deed). needs_verification: confirm scope of municipal code-enforcement liens relative to § 15-18-214’s exception.

Mechanic Liens

A mechanic’s lien perfected before the tax lien attachment generally does not survive a Montana tax deed: § 15-18-214 extinguishes prior liens. However, a mechanic’s lien perfected after the tax deed issues would be a new lien on the tax-deed title. needs_verification: no Montana appellate decision specifically addressing mechanic lien survival through a tax deed was located.

Junior Mortgage / Senior Lien Exposure

A Montana tax lien is generally superior to mortgages and trust indentures (the tax lien’s priority derives from its statutory character). A tax deed therefore extinguishes junior mortgages under MCA § 15-18-214. The purchaser of a tax deed takes free of junior mortgages but should verify whether any mortgage predates the tax lien with a claim to priority (unusual but possible with irregular assessment timelines). For the STFA non-judicial trustee’s sale: the trustee’s deed conveys the grantor’s interest subject to senior liens; purchaser must verify and potentially pay off any senior property tax liens or superior mortgages.

Due Diligence Checklist for Prudent Purchaser

  1. IRS/federal tax lien search — PACER, county clerk, and IRS CSED to check for § 7425 notice obligations and 120-day redemption exposure.
  2. UCC search — Montana Secretary of State for fixture filings (personal property on real estate).
  3. Environmental search — EPA CERCLIS/NPL; county clerk for § 75-10-720 state environmental lien notices; Phase I ESA for commercial properties.
  4. HOA / special assessment status — confirm no unpaid post-deed local improvement assessments survive under § 15-18-214.
  5. Litigation guarantee / title search — required by § 15-18-212 for the notice process; purchaser should independently obtain one to identify all record interests.
  6. Bankruptcy search — PACER docket for any pending Chapter 7/11/13 case that triggered the automatic stay.
  7. SCRA check — DMDC military service verification for any named obligor.

10b. Purchaser Obligations During Redemption

Must Pay Subsequent Taxes

Yes. Under MCA § 15-18-112, the redemption amount includes “subsequent taxes assessed, with interest and penalty.” An assignee who allows subsequent year taxes to go unassigned (unpaid) risks losing position; in practice, assignees must pay subsequent year taxes to protect their investment, because failure to do so results in a new tax lien accruing to the county (or a new assignee) that could dilute or displace their interest. There is no express statute compelling the assignee to pay subs on penalty of lien cancellation, but economic incentive and the redemption amount formula effectively require it. [Source: mca.legmt.gov — § 15-18-112, retrieved 2026-06-02]

Must Send Certified-Letter Notice to Owner Before Expiration

Yes — this is a strict statutory requirement. The assignee (or county treasurer) must send notice “by certified mail, return receipt requested” to the occupant and each party on the litigation guarantee between May 1 and May 30 of the year in which the redemption period expires (MCA § 15-18-212). If the May 1–30 window is missed, notice must be sent at least 60 days and no more than 120 days before the deed-issuance date.

Consequence of failure: If the assignee fails to provide required § 15-18-212 notice, the county treasurer shall cancel the property tax lien and assignment certificate (MCA § 15-18-212). Failure to give proper notice is the leading cause of Montana tax deed challenges; courts treat the deed as void if notice was legally defective (Moran v. Robbin; Isern v. Summerfield). [Source: mca.legmt.gov — § 15-18-212, retrieved 2026-06-02]

Owner Right to Remain in Possession During Redemption

Montana statutes are silent on whether the owner retains a right to occupy the property during the redemption period. As a practical matter, because the assignee holds only a lien position (not title) during the 36-month period, the owner/occupant has the common-law possessory right until the tax deed issues. The § 15-18-219 mechanism specifically recognizes the property is occupied (“a dwelling that is currently occupied by the legal titleholder of record”) and creates the auction track precisely because the owner-occupant retains possession up to deed issuance. The purchaser may not enter or take possession before the deed issues. needs_verification: no Montana statute or case directly states the possessory rule for the assignee during the redemption period; this is the logical inference from the statutory scheme.

Costs Collectible If Owner Redeems

Upon redemption, the redemptioner pays to the county treasurer (MCA § 15-18-112):

  • The property tax lien amount (delinquent taxes, penalties, interest, costs);
  • All subsequent taxes assessed with interest and penalty;
  • The assignment fee paid by the assignee.

The statute does not allow the assignee to collect for improvements, maintenance expenditures, or other costs beyond what § 15-18-112 enumerates. (Contrast with MCA § 25-13-802, which allows an execution-sale purchaser to collect reasonable repair/maintenance expenditures upon redemption from a judicial-sale — that rule applies to sheriff’s sales under execution, not tax-lien assignments.) [Source: mca.legmt.gov — § 15-18-112, § 15-18-114, retrieved 2026-06-02]

Property Maintenance Obligation

Montana statutes impose no express affirmative maintenance obligation on the assignee during the redemption period. The assignee is a lien-holder, not the owner of record, and has no possessory right and therefore no duty to maintain. If the property is vacant and deteriorating, the assignee has no legal duty under the tax-lien statutes to intervene; any municipal code-compliance obligation falls on the record title owner. needs_verification: no Montana statute or case on point was located.

11b. Restrictions & Special Rules

Entity Purchase Restrictions

  • Natural persons only: No — both natural persons and entities may purchase assignments under MCA § 15-17-323 and may bid at § 15-18-220 residential auctions.
  • LLCs permitted: Yes — domestic LLCs (and other domestic entities) may purchase.
  • Foreign entity prohibition: MCA § 15-18-220(7) expressly prohibits the county treasurer from selling a residential tax-deed auction property to a “foreign entity.” The treasurer cannot accept an opening bid from an entity unless it provides written proof of domestic entity status. “Foreign entity” is not separately defined in § 15-18-220; it takes its meaning from Montana’s business organization statutes (MCA Title 35). This restriction applies only to the § 15-18-220 residential auction, not expressly to direct non-residential assignments under § 15-17-323, though equivalent restrictions may apply under other law. needs_verification: whether the foreign-entity bar extends to § 15-17-323 assignments or is limited to § 15-18-220 auctions. [Source: mca.legmt.gov — § 15-18-220(7), retrieved 2026-06-02]

Insider Prohibition

Montana’s tax-lien statutes contain no express prohibition on county officers, employees, or their relatives bidding at or purchasing tax-lien assignments or residential tax-deed auctions. The § 15-18-220 statute only bars foreign entities and prior non-performing bidders. Montana’s general ethics statute, MCA § 2-2-121 (Code of Ethics — rules of conduct for public officers and employees), prohibits a public employee from performing “an official act directly and substantially affecting to its economic benefit a business or other undertaking in which the officer or employee either has a substantial financial interest” — but this restricts conflicted official-act performance rather than expressly prohibiting a county treasurer’s employee from purchasing assignments administered by their own office. MCA § 2-2-104 similarly prohibits using confidential information acquired in the course of official duties to further personal economic interests. Neither statute contains an outright bar on property acquisition. needs_verification: whether any Montana AG opinion or district-court decision specifically holds that a county treasurer’s employee is prohibited under § 2-2-121 or § 2-2-104 from purchasing tax-lien assignments processed through their office. [Source: mca.legmt.gov — § 2-2-121, https://mca.legmt.gov/bills/mca/title_0020/chapter_0020/part_0010/section_0210/0020-0020-0010-0210.html; § 2-2-104, https://mca.legmt.gov/bills/mca/title_0020/chapter_0020/part_0010/section_0040/0020-0020-0010-0040.html, retrieved 2026-06-10]

Right of First Refusal — Municipalities / CDCs / Land Banks

  • Municipalities: No statutory right of first refusal at the § 15-18-220 auction. However, municipalities may request assignment of a tax lien on properties with delinquent special assessments under MCA § 15-17-317, which gives them a preferential access to those specific liens (not a formal ROFR, but de facto priority when special assessments are owed to the municipality and the lien has not yet been assigned). [Source: mca.legmt.gov — § 15-17-317, retrieved 2026-06-02]
  • CDCs / nonprofits: No statutory ROFR found.
  • Land banks: Montana has no statewide land bank program and no enabling statute for a dedicated county land bank authority (as of 2026-06-02). The municipality-as- assignee mechanism under §§ 15-17-317 through 15-17-319 allows municipal governments to acquire, hold, and sell tax-delinquent properties, functioning as a quasi-land-bank, but there is no formal “land bank” designation or statute. If the § 15-18-220 residential auction produces no qualifying bids, the assignment is cancelled (§ 15-18-220) — the property effectively reverts to county possession through the ordinary tax-lien-reattachment process; no formal land bank receives it. needs_verification: confirm no county has established a local land bank by ordinance under general municipal authority.

Deficiency Judgment Rules

Post-tax-sale: Montana law does not authorize a deficiency judgment after a tax-deed proceeding. The tax-lien process extinguishes the owner’s equity but creates no personal liability against the former owner for any shortfall.

Post-mortgage-foreclosure (STFA non-judicial): MCA § 71-1-317 prohibits all deficiency judgments after a non-judicial trustee’s sale under the Small Tract Financing Act. [Source: mca.legmt.gov — § 71-1-317, retrieved 2026-06-02]

Post-mortgage-foreclosure (judicial): The general rule permits a deficiency after judicial foreclosure, subject to two statutory anti-deficiency provisions:

  1. Purchase-money mortgage bar (MCA § 71-1-232): No deficiency on the foreclosure of a vendor-purchase-money mortgage on any real property (not limited to residences). [Source: mca.legmt.gov — § 71-1-232, retrieved 2026-06-02]
  2. Judicial foreclosure of STFA-eligible property: First State Bank of Forsyth v. Chunkapura (226 Mont. 54, 734 P.2d 1203 (1987)) held that the STFA’s no-deficiency quid pro quo bars a deficiency even when the lender elects judicial foreclosure of an owner-occupied single-family residence on ≤40 acres — i.e., property that could have been foreclosed non-judicially under the STFA.

Anti-Deficiency Statute

Montana has two anti-deficiency provisions:

  • MCA § 71-1-317: STFA non-judicial sales — absolute bar, all lenders, all property types on ≤40 acres.
  • MCA § 71-1-232: Purchase-money mortgages — absolute bar, judicial foreclosure, all real property (vendor-financed). [Source: mca.legmt.gov — §§ 71-1-317, 71-1-232, retrieved 2026-06-02]

One-Action Rule

CORRECTION (2026-06-10): Montana does have a statutory one-action rule for judicial mortgage foreclosure. MCA § 71-1-222(1) provides: “There is only one action for the recovery of debt or the enforcement of any right secured by a mortgage upon real estate, and that action must be in accordance with the provisions of this part.” In that single action the court may direct sale of the property, application of proceeds (including payment of taxes), and award of costs. If sale proceeds are insufficient, a deficiency judgment may be docketed against personally liable defendants (§ 71-1-222(2)), subject to the anti-deficiency bars in §§ 71-1-317 and 71-1-232.

The one-action rule contains 19 statutory exceptions (§ 71-1-222(4)(a)–(s)), including receiver appointments, power-of-sale exercises, UCC remedies, bankruptcy proceedings, tort claims, equitable relief, and actions against sureties/guarantors — exceptions that substantially narrow the rule’s practical reach.

The one-action rule applies only to judicial mortgage foreclosures under Title 71, Ch. 1, Part 2. Non-judicial STFA trustee’s sales are not subject to the same single- action constraint because the STFA is a non-judicial remedy; however, once a STFA foreclosure occurs, a separate deficiency action is absolutely barred by § 71-1-317.

[Source: mca.legmt.gov — § 71-1-222, https://mca.legmt.gov/bills/mca/title_0710/chapter_0010/part_0020/section_0220/0710-0010-0020-0220.html, retrieved 2026-06-10]

Local pages

County deep dives: county pages for this jurisdiction are being added largest-first. Unclaimed funds agency: unclaimed-property-montana

Legal information, not legal advice. This page summarizes Montana statutes and case law for research purposes. Statutes and local procedures change; verify against the cited primary sources and consult a licensed Montana attorney before acting. Last verified: 2026-06-10.

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