What are Restrictions on Land Transfers?

The MSPA governs when and how land can be transferred in Montana, subject to the type of review tracts have had to undergo. For example, every final subdivision plat must be filed with the county clerk and recorder before title to the subdivided land can be sold or transferred in any way, 76-3‐301(1), MCA. This prevents speculative sales prior to the physical creation of a lot. If a plat is attempted to be filed with the clerk and recorder without having met final plat requirements pursuant to 76-3-611(1), statute allows the clerk to refuse to accept the plat for filing. 8. Land Use and Planning Law in Montana 188. There are some minor exceptions to this rule. These restrictions to transfer of title are not applicable when the parcel or tract intended to be transferred is located in an area in which the state has no jurisdiction, such as federal lands. They are also not applicable to parcels that were created prior to the enactment of the MSPA on July 1, 1973,76-3-302 et al, MCA. Under certain circumstances, a subdivider may enter into contracts to sell lots following the approval or conditional approval of preliminary plat but prior to final plat pursuant to 76-3‐303, MCA. In entering into such contracts, the purchasers of the future lots must make all payments to an escrow agent, which must be a bank or savings and loan association chartered to do business in Montana. Any payments made by the purchasers of the future lots may not be distributed by the escrow agent to the subdivider until the final plat has been reviewed and approved by the local governing body, and filed with the county clerk and recorder. Additionally, if final plat is not approved within two (2) years of establishing the contract, refunds will be made by the escrow agent to the purchaser. The county treasurer must also certify that there are no delinquent taxes on the property
in question, and all contracts must contain language stipulating the temporary nature of the agreement and that “until a final plat identifying the property has been filed with the county clerk and recorder, title to the property may not be transferred in anymanner" per 76-3-303(5),MCA.