---
title: What is Acquiring Real Property by Purchase or Gift?
description: Montana municipalities may acquire real property through purchase or donation. Purchases over $20,000 require an appraisal by a certified appraiser or appointed citizens, and gifts must be used for their intended purpose or for general municipal benefit under MCA 7-8-103.
---

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November 5, 2025

# What is Acquiring Real Property by Purchase or Gift?

## Municipal Acquisition of Real Property in Montana: Legal Guidelines and Appraisal Requirements

A municipal government may also acquire real property by purchasing it from the owner or by receiving it as a gift, grant donation or bequest. Again, in the interests of caution or in highly controversial circumstances, a municipality may wish to follow the procedures legally required of county governments in the acquisition of real property.  
• Real property with a value in excess of $20,000 may not be purchased unless it has been  
previously appraised by a disinterested “certified general real estate appraiser” or three   
disinterested citizens of the county appointed by the district judge.  
• The government may not pay more than the appraised value for the real property.  
If real property is to be received as a gift, grant donation or bequest, the real property must be administered and used for the particular purpose for which the property was given, donated, granted, devised, or bequeathed. In the event no particular purpose is mentioned in such gift, donation, grant, devise, or bequest, then the property shall be used for the general support, maintenance, or improvement of the city or town, 7‐8‐103, MCA.

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Resources prepared by the MSU Extension Local Government Center are intended for educational purposes only and do not constitute legal advice. For interpretation or application of the law, please consult qualified legal counsel. The Montana State University Extension Service is an ADA/EO/AA/Veteran’s Preference Employer and Provider of Educational Outreach.

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