Contracts
In Montana, a 'possession prior to closing' agreement (allowing the buyer to move in before closing) creates risks for the seller because:
AThe buyer automatically becomes a tenant with full tenant rights
BIf the transaction fails to close, the buyer may refuse to vacate, requiring an eviction proceeding that is more complicated than standard remedies✓ Correct
CMontana law prohibits possession prior to closing
DThe seller must pay the buyer's moving costs if the transaction fails
Explanation
Allowing a buyer to take possession before closing can create a landlord-tenant relationship if the transaction fails to close. Removing the buyer (now a tenant) may require eviction proceedings rather than the simpler remedies available before possession is given.
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