--- title: What is Disposing of Property? description: Montana law allows municipalities to sell, lease, or trade property by a two-thirds council vote. Learn the legal steps for auctions, appraisals, and intergovernmental trades, including exceptions and conflict-of-interest safeguards under MCA 7-8-4201, 7-5-4307, and 7-8-101 --- [Skip to content](https://www.lgc.montana.edu/knowledge-base/what-is-disposing-of-property#main-content) English Show submenu for translations [More support](https://www.lgc.montana.edu/knowledge-base/kb-tickets/new?hsLang=en) [Ticket System Portal](https://lgc.montana.edu/tickets-view?hsLang=en) [![LGC Color-1](https://www.lgc.montana.edu/hs-fs/hubfs/LGC%20Color-1.png?width=100&height=100&name=LGC%20Color-1.png)](https://www.montana.edu/extension/localgov/index.html) - [Submit a Ticket](https://www.lgc.montana.edu/knowledge-base/kb-tickets/new) - [View Tickets](https://lgc.montana.edu/tickets-view) - [Subscribers Portal](https://lgc.montana.edu/_hcms/mem/login?redirect_url=https%3A%2F%2Flgc.montana.edu%2Ftickets-view%3FhsLang%3Den) Open main navigation Close main navigation - [Submit a Ticket](https://www.lgc.montana.edu/knowledge-base/kb-tickets/new) - [View Tickets](https://lgc.montana.edu/tickets-view) - [Subscribers Portal](https://lgc.montana.edu/_hcms/mem/login?redirect_url=https%3A%2F%2Flgc.montana.edu%2Ftickets-view%3FhsLang%3Den) - English Show submenu for translations - [More support](https://www.lgc.montana.edu/knowledge-base/kb-tickets/new) - [Ticket System Portal](https://lgc.montana.edu/tickets-view) - [Request a Training](https://40zxa7.share-na2.hsforms.com/2mMH41wA3QYGtjwc4OPWO3w) [Request a Training](https://40zxa7.share-na2.hsforms.com/2mMH41wA3QYGtjwc4OPWO3w) How can we help you? - There are no suggestions because the search field is empty. 1. [MSU Extension Local Government Center](https://www.lgc.montana.edu/knowledge-base?hsLang=en) 2. [Process guides](https://www.lgc.montana.edu/knowledge-base/process-guides?hsLang=en) November 5, 2025 # What is Disposing of Property? ## Selling and Trading Municipal Property in Montana: Legal Procedures and Best Practices A city or town council may sell, dispose of, or lease any property belonging to the city or town by adoption of an ordinance or resolution passed by a two-thirds vote of all the members of the council, 7‐8‐4201, MCA. Old supplies or equipment may be sold by the city or town to the highest responsible bidder after calling for bid purchasers as herein set forth for bid sellers, and such city or town may trade in supplies or old equipment on new supplies or equipment at such bid price as will result in the lowest net price, 7‐5-4307, MCA. A city or town may trade with or purchase from any county or political subdivision any property without an appraisal of the property, 7‐8-101(3)(b), MCA. The legal requirements imposed upon sale of municipal property are less stringent than on the sale of property by a county government. 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 sale of personal municipal property: • The sale of any personal property with a value greater than $2,500 would be preceded by a competent appraisal of the fair market value of the property. Property with a value greater than $2,500 would be sold at public auction noticed as provided at 7‐1‐4127, MCA. If no acceptable bid is received at the public auction, the council could instead approve a private sale of the property at no less than 70 percent of the appraised value of the property. Municipal property should not be sold to officials or employees of the municipal government except at a properly noticed public auction, 2‐2-104 and 7‐5-4109, MCA, to avoid the potential for a real or perceived conflict of interest - [FAQs](https://www.lgc.montana.edu/knowledge-base/faqs?hsLang=en) - [Process guides](https://www.lgc.montana.edu/knowledge-base/process-guides?hsLang=en) - [White papers](https://www.lgc.montana.edu/knowledge-base/white-papers?hsLang=en#main-content) - [Voter Review](https://www.lgc.montana.edu/knowledge-base/white-papers?hsLang=en#voter-review) - [Glossary of terms](https://www.lgc.montana.edu/knowledge-base/glossary-of-terms?hsLang=en) - [Product or service descriptions](https://www.lgc.montana.edu/knowledge-base/product-or-service-descriptions?hsLang=en) - [Online Courses](https://www.lgc.montana.edu/knowledge-base/online-courses?hsLang=en) - [LGC Services and Pricing](https://www.lgc.montana.edu/knowledge-base/service-and-pricing) - [Request a Training](https://40zxa7.share-na2.hsforms.com/2mMH41wA3QYGtjwc4OPWO3w) - [Ask the LGC Team a Question](https://40zxa7.share-na2.hsforms.com/2_ory1YLOQQe3qA3hzpNAkg) [![LGC Color-2](https://www.lgc.montana.edu/hs-fs/hubfs/LGC%20Color-2.png?width=100&height=100&name=LGC%20Color-2.png "LGC Color-2")](https://www.montana.edu/extension/localgov/index.html) 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. Copyright © 2026