Key Takeaways
- The Montana Board of Realty Regulation (BRR) regulates real estate licensees under Montana Code Annotated Title 37, Chapter 51
- BRR consists of five members appointed by the Governor: four licensed brokers and one public member
- BRR has authority to investigate complaints, conduct audits, and take disciplinary action including license suspension or revocation
- Montana requires 70 hours of pre-license education for salesperson applicants
- BRR operates under the Montana Department of Labor and Industry
Montana Board of Realty Regulation (BRR)
The Montana Board of Realty Regulation (BRR) is the state agency responsible for licensing, regulating, and overseeing real estate professionals in Montana under Montana Code Annotated (MCA) Title 37, Chapter 51.
Real Estate SalespersonFree exam prep with practice questions & AI tutor
BRR Structure and Authority
Board Members
BRR consists of five members appointed by the Governor:
| Member Type | Number | Requirements |
|---|---|---|
| Licensed brokers | 4 | Active Montana broker license |
| Public member | 1 | Not licensed in real estate |
Members serve four-year staggered terms with terms expiring on different years.
Key BRR Functions
| Function | Description |
|---|---|
| Licensing | Process applications, approve education providers, issue licenses |
| Education | Set education requirements, approve courses and schools |
| Enforcement | Investigate complaints, conduct audits of trust accounts |
| Discipline | Suspend, revoke, or deny licenses; impose fines |
| Insurance | Oversee Errors & Omissions insurance requirements |
Montana Real Estate License Act
The Montana Real Estate License Act (MCA Title 37, Chapter 51) is the primary statute governing real estate licensing in Montana. Key provisions include:
- Who must be licensed - Definitions of broker and salesperson activities
- Exemptions - Attorneys, property owners, certain employees
- Prohibited conduct - Actions that violate the law
- Disciplinary actions - Grounds for suspension or revocation
- Trust fund handling - Requirements for client funds
Administrative Rules of Montana (ARM)
BRR adopts administrative rules (ARM Title 24, Chapter 210) that implement the License Act. These rules cover:
- License application procedures
- Education requirements and course approval
- Advertising standards
- Trust account requirements
- Agency disclosure procedures
Exam Tip: BRR can impose administrative penalties and revoke licenses. Be familiar with both the statute (MCA) and administrative rules (ARM).
Professional Liability Insurance Requirement
Montana is unique in requiring all licensees to maintain Errors and Omissions (E&O) insurance under MCA 37-51-325:
Insurance Details
| Requirement | Details |
|---|---|
| Coverage type | Professional Liability / E&O Insurance |
| Who must carry | All active brokers and salespersons |
| State program | Rice Insurance Services Center (RISC) |
| Approximate cost | $168 per year (state group program) |
| Coverage period | November 1 - October 31 |
Insurance Options
- State-sponsored program through RISC - most common
- Private carrier that meets BRR standards
Key Point: Proof of E&O insurance is required before a license can be activated. This is a unique Montana requirement.
Real Estate Recovery Account
Montana maintains a Real Estate Recovery Account to provide compensation to consumers who suffer financial losses due to the misconduct of a licensed real estate professional.
Account Details
| Requirement | Details |
|---|---|
| Maximum per transaction | $15,000 |
| Maximum per licensee | $50,000 total |
| Filing requirements | Must obtain court judgment first |
| License consequence | License suspended until amount repaid with interest |
How the Account Works
- Consumer is harmed by licensee misconduct
- Consumer obtains court judgment against licensee
- Consumer cannot collect judgment from licensee
- Consumer applies to BRR for payment from Recovery Account
- BRR pays from account (if eligible)
- Licensee's license is suspended until repayment
Key Point: The Recovery Account covers actual damages only—not punitive damages, attorney fees, or court costs.
BRR Contact Information
| Resource | Information |
|---|---|
| Website | boards.bsd.dli.mt.gov/realty-regulation |
| Mailing Address | PO Box 200513, Helena, MT 59620-0513 |
| Physical Address | 301 S Park, 4th Floor, Helena, MT 59620 |
| Phone | (406) 444-6880 |
| DLIBSDHELP@mt.gov |
How many members serve on the Montana Board of Realty Regulation?
What type of insurance is required for all Montana real estate licensees?
What is the maximum amount the Montana Real Estate Recovery Account can pay per transaction?