--- title: What is  Disposing of Real Property? description: Montana law (7-8-4201, MCA) allows municipalities to sell or lease property by a two-thirds council vote, but property held in trust requires voter approval. Cities with self-governing powers may override this with a majority vote per AG Opinions 43 A.G. Op. 41 & 55. Historic properties may be transferred to nonprofits under preservation conditions --- [Skip to content](https://www.lgc.montana.edu/knowledge-base/what-is-disposing-of-real-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 Real Property? ## Legal Requirements for Disposing of Municipal Property in Montana: Trusts, Elections, and Historic Assets 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. However, if the property is held in trust for a specific purpose, (such as a cemetery or park land) the sale or lease must be approved by a majority vote of the electors of the municipality voting at an election called for that purpose. The election must be held in conjunction with a regular or primary election. Although subsection (7‐8-4201(2)(a), MCA requires a two-thirds vote of the city commission to sell city land, a city with self-governing powers may enact a superseding ordinance allowing the sale of city land by a simple majority vote \[43 A.G. Op. 41 (1989)\]. “After analyzing subsection (2)(b) of this section, the Attorney General applied the same analysis and conclusion to allow the governing body of a local government unit with self-governing powers to enact an ordinance providing for the disposition by majority vote of the council of property held in trust for a specific purpose.” \[43 A.G. Op. 55 (1990)\]. Prudent municipal officials will seek a review and interpretation by the city attorney of this A.G. Opinion before proceeding with the sale of real property held in trust by a city or town. If a city or town owns property containing a historically significant building or monument, the city or town may sell or give the property to nonprofit organizations or groups that agree to restore or preserve the property, 7-8-4201(3), MCA. The contract for the transfer of the property must contain a provision that requires the property to be preserved in its present or restored state upon any subsequent transfer; and 6. Municipal Property and Contracts 170 provides for the reversion of the property to the city or town for noncompliance with conditions attached to the transfer. As is the case in the sale of personal property by a municipality, the legal requirements imposed upon sale of municipal real property are less stringent than on the sale of real property by a county government. However, in certain circumstances, a municipality may wish to observe the procedures legally required of county governments in the sale of personal property set forth above in the sale of municipal real property, as well. - [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