Contracts

In Montana, a buyer discovers after signing a purchase agreement that the property is located in a FEMA-designated floodplain. If the contract includes no flood-related contingency, the buyer:

AMay cancel the contract with full earnest money refund due to material misrepresentation
BIs generally bound by the contract unless the seller concealed this fact✓ Correct
CMay automatically cancel under Montana's natural hazard disclosure laws
DMust proceed to closing since all land records are public

Explanation

If the buyer did not negotiate a flood contingency and the seller did not conceal or misrepresent the flood zone status, the buyer is generally bound by the contract. Buyers should conduct due diligence on flood zone status before making offers.

Related Montana Contracts Questions

Practice More Montana Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Montana Quiz →