How to Access Property Records in Montana

What Information Can You Find in Montana Property Records?

A property history search can unveil tremendous insight into a property. You may find more detail than you expected. Some of the records are very detailed, and others are sparse, and they can overlap.

Some of the things that a property history search may reveal include:

Deeds and Conveyance Records

Most people know what deeds are. These essential documents transfer ownership of property and verify title. Different types of deeds are used in specific situations, which can tell you a lot about a property and its owners.

All parties must sign deeds, and a notary must witness them. Some of the information contained in deeds includes:

• Name of the Seller/Grantor and Buyer/Grantee.
• A detailed description of the property.
• Maps and plats along with boundaries and sometimes surveys showing the acreage and edges of the property.
• Conveyance language explaining the ownership transfer from one person or entity to another.
• Notarization and execution are at the bottom, where everyone signs to make it legal.

Much of the language contained in deeds refers to the warranty implied or specified and the conveyance of the land from one or more parties to another.

Property Tax Records

Everyone who owns property in Montana must pay annual property taxes. These taxes fund schools, public road maintenance, government salaries, and emergency services like fire, police, and EMTs.

Montana's average effective property tax rate of 0.74% is lower than the national average of 0.99%. However, Montana has some of the highest property taxes because property is assessed every two years, and the rate is based on fair market value.

Local county tax assessors perform the bi-annual tax assessments, and tax collectors send out bills and collect the money. The Montana Department of Revenue oversees these local tax officials.

Montana's Property tax records must detail the following information:

• Tax Rate - Each property falls under a local taxing area with a different tax rate from other places. The document should specify the taxing area and rate. It may also include a breakdown of applicable taxes.
• Assessed Value - Local assessors determine the property's value and use it to calculate the taxes owed. Therefore, the assessed value must appear on the document.
• Payment History and Methods - Property owners should receive a tax record that lists the payments made and the amount owed. The record may also include the accepted forms of payment.
• Property and Owner Information - The document should describe the property to ensure it is correct. In addition, it should state the property owner's name, determining who is liable for the taxes.
• Exemptions - The record should outline applicable exemptions such as the Abandoned Mobile Home Tax Exemption.

The standard tax assessment process is as follows:

• Valuation - The valuation process involves the assessor determining the property's value using approved methods. The most common methods are cost, market sales, and income approaches. Assessors may use one or multiple methods, accounting for changes and differences. Once they have determined the property value, the assessor prepares a document for the property owners.
• Noticing - The second step is sending a notice to the property owner. The notice contains the property's assessed value and may also include notes about the property the assessor finds relevant or worth mentioning.
• Review - Property owners can appeal an assessment value if they think it is unfair. The appeal process demands submitting a written request to the local appeal board or a similar authority. The board reviews the appeal and considers evidence before adjusting the assessed value.

Building Permits and Regulations in Montana

If you want to build a new home, renovate one, or demolish a building, you need a building permit. Montana consolidates the building permit process at the state level. To apply for one, you must contact the Montana Department of Labor and Industry. You can find instructions, exemptions, and other information on their website.

Property Liens and Encumbrances in Montana

Liens are encumbrances that negatively affect a property and its owners. Too many liens indicate a problem and can damage the owner's financial reputation. There are two main types of liens: voluntary and involuntary.

Voluntary Liens

The thing about voluntary liens is you get to choose them. When you take out a mortgage or loan, you can use your house as collateral and allow the lender to place a lien on the home. The lien will remain until the loan is paid off.

• Mortgage Liens - Mortgage liens are very common and not necessarily bad. They protect the lender in case the homeowner defaults on the loan. Then, they can foreclose and sell the house to get their money back.

  The following information may appear in a Montana mortgage document:

  • Mortgage Terms - The document will outline the mortgage terms, including the length of the loan, the interest rate, and approved payment methods.
  • Loan Amount - The document will outline the loan amount, including the initial borrowed amount.
  • Promissory Notes - Promissory notes are legal documents that prove the borrower's debt to the lender. They specify the loan amount, interest rate, payback conditions, and any applicable penalties.

Involuntary Liens

Involuntary liens are beyond your control and imposed when you fail to pay a debt you owe. These types almost always lead to foreclosure and the loss of your home.

• Mechanic's Liens - Material suppliers, contractors, subs, and laborers who work on your home can put a mechanic's lien on your home if you don't pay them. After placing the lien, they must sue you in court to enforce the lien. If the judge rules in their favor, they can foreclose and sell your home to get paid.
• Tax Liens - If you don't pay your annual property taxes, the local county will impose a lien on your property. Then, if you still don't pay, they will foreclose and sell your house at auction well below fair market value.
• Judgment Liens - Creditors use judgment liens the same way contractors use mechanic's liens. They will sue you in court, and if they win, they can foreclose, evict you, and sell your house to pay off the debt.

The Process of Property Liens in Montana

The process of putting a property lien in Montana involves the following stages:

• The first step is usually to fill out the lien form. Claimants must get the proper form and ensure they have the correct information, such as the property owner's details, the property identification, the amount owed, and the dates of work or delinquency.
• The second stage is notifying the property owner. Claimants may give notice by a specific deadline, but legislation exempts some parties from giving notice.
• Filing the lien is the next step. Claimants must file the lien at the county clerk and recorder's office unless advised otherwise. Claimants must file the lien in the county where the property is.
• After filing, the claimant may enforce or release the lien. Each type of lien has a deadline before it becomes invalid. Therefore, claimants must enforce the lien before the deadline.

Easements and Covenants

Many deeds include easements and covenants dictating specific rules or restrictions about the land. Easements are rights of way that provide access to the land to someone other than the owner. For example, a wireless company with towers on private land might enter the land to maintain its towers without first asking.

Covenants are rules about how land can be used. You see these often in condo developments and gated communities. They typically refer to the community's common land but can also pertain to the specific housing unit. For example, all units must use the same color paint on the home's exterior.

Plats and Surveys

Plats and surveys are both types of maps. Plats show the boundaries of all neighboring properties, whereas surveys show only the boundaries of a single property. These documents often accompany deeds.

Typical surveys include the following information:

• Boundaries - The surveyor will measure and provide the property's boundaries. They may also provide the angles of the boundaries.
• Property Description - The document may contain a legal property description. If not, it will identify the property by address, plot number, and other identifying factors.
• Rights of Way - The document will show any rights of way that apply to the property and other easements.
• Property Owner - The record should identify the property owner by name and provide other details, such as contact information.
• Surveyor's Notes - The document may include notes about the property or a survey for the surveyor.

Property Descriptions and Boundaries in Montana

Each piece of real property in Montana has its own legal description. These descriptions include map coordinates showing exactly where the property is located and a written description that includes natural landmarks and other defining characteristics to make it easy to find.

Surveys measure the land and determine exact map coordinates and property boundaries. They are used before building new construction, when installing utilities, and in boundary disputes.

Boundary disputes are common and erupt when one neighbor is sure another is trespassing on their land. They often end up in court, where a judge must decide the outcome. The court will ask a professional surveyor to measure the land to determine the boundaries.

Foreclosures

Foreclosures appear in public property records. In addition to being embarrassing for the owner, they can lower the home's value and make it difficult to sell. Many buyers won't want to deal with the extra hassles that foreclosure homes come with.

Pre-foreclosures, however, are homes that have not yet been sold at auction and can still be redeemed. Investors look for these homes and offer the owners a deal so they can buy them cheaply and sell them for a profit. It benefits the owner by allowing them to get out of debt and not show a foreclosure on their credit report.