MontanaHB 52069th Legislature, Regular Session (2025)HouseWALLET

Revise laws to clarify that local prohibitions on conveying family transfer parcels do not apply to conveyances involving lenders

Sponsored By: Larry Brewster (Republican)

Became Law

Credit TransactionsFamily LawFinancial InstitutionsPropertyLocal Government

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 1 costs, 3 mixed.

Family land transfers: limits and lender protections

Family land gifts or sales face a resale hold of up to 2 years, unless the local government sets a shorter time. You can still use a mortgage or trust indenture during that time. Foreclosure or deed‑in‑lieu transfers are not restricted, and the buyer can resell freely. Local rules cannot strip a lender’s lien or block those foreclosure buyers from transferring title. In zoning districts, each family parcel must be at least 5 acres unless local zoning allows smaller lots. You may give land to an immediate family member regardless of age, and the spouse may co‑own. Courts may fine willful evasion $5,000 per division.

Pay taxes before split; proration available

Before any exempt land split, the county treasurer must certify that all property taxes and special assessments are paid. If the split includes centrally assessed property and taxes are not separately listed, the Department of Revenue prorates the taxes for the portion being divided. The treasurer may accept the prorated amount as a partial payment, but the owner remains responsible for full taxes and assessments.

Small land splits skip subdivision review

The law treats some small land changes as not subdivisions. Examples include moving a boundary between neighbors, one gift or sale to an immediate family member, creating ag‑use‑only parcels, and combining lots. These still must meet survey rules and local zoning. Inside an approved subdivision, a split that makes allowed‑size parcels for an immediate family member also skips extra subdivision review, but you must file an amended plat and follow existing subdivision rules.

Big lot changes need local approval

Inside a recorded subdivision, any change that increases the number of lots or redesigns or rearranges six or more lots must be approved by the local governing body. You must get that approval before filing an amended plat.

Faster, cheaper local checks on land splits

Local governments can examine your split or aggregation, but they must decide within 20 working days after a complete application. They may charge an examination fee, capped at $400. They cannot add extra conditions beyond what is needed to meet survey rules. They may grant a variance to fix a hardship.

Sponsors & Cosponsors

Sponsor

  • Larry Brewster

    Republican • House

Cosponsors

  • Forrest Mandeville

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 291 • No: 1

House vote 4/14/2025

Do Concur

Yes: 48 • No: 0

House vote 4/12/2025

Do Concur

Yes: 48 • No: 1

House vote 3/1/2025

Do Pass

Yes: 97 • No: 0

House vote 2/28/2025

Do Pass

Yes: 98 • No: 0

Actions Timeline

  1. Chapter Number Assigned

    5/5/2025House
  2. Signed by Governor

    5/1/2025House
  3. Transmitted to Governor

    4/24/2025House
  4. Signed by President

    4/24/2025Senate
  5. Signed by Speaker

    4/23/2025House
  6. Returned from Enrolling

    4/15/2025House
  7. Sent to Enrolling

    4/15/2025House
  8. Returned to House

    4/14/2025Senate
  9. 3rd Reading Concurred

    4/14/2025Senate
  10. 2nd Reading Concurred

    4/12/2025Senate
  11. Committee Report--Bill Concurred

    3/24/2025Senate
  12. Committee Executive Action--Bill Concurred

    3/21/2025Senate
  13. Hearing

    3/5/2025Senate
  14. Referred to Committee

    3/4/2025Senate
  15. First Reading

    3/3/2025Senate
  16. 3rd Reading Passed

    3/1/2025House
  17. 2nd Reading Passed

    2/28/2025House
  18. Committee Report--Bill Passed

    2/26/2025House
  19. Committee Executive Action--Bill Passed

    2/25/2025House
  20. Hearing

    2/24/2025House
  21. First Reading

    2/18/2025House
  22. Referred to Committee

    2/18/2025House
  23. Introduced

    2/17/2025House

Bill Text

  • Enrolled

    4/15/2025

  • Introduced

    2/17/2025

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