Escrow & Title
In Montana, when a buyer requests a 'holdback' of sale proceeds at closing to cover potential undisclosed defects, this is typically:
AAutomatically provided by all Montana title companies
BNegotiated in the purchase contract and requires the seller's agreement—often structured as an escrow holdback for a specified period✓ Correct
CProhibited under Montana law
DOnly available for commercial transactions
Explanation
An escrow holdback of a portion of sale proceeds requires the seller's agreement in the purchase contract. The escrowed funds are held for a specified period and released to the seller when conditions are met (e.g., no claims for undisclosed defects).
Related Montana Escrow & Title Questions
- In Montana, a buyer's lender typically requires title insurance for which primary reason?
- In Montana, which party typically pays for the owner's title insurance policy?
- In Montana, a 'deficiency judgment' after a non-judicial foreclosure (trustee's sale) on a deed of trust is generally:
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