Cal. Civ. Code § 70-33-304
Transfer Of Premises Or Termination Of Management -- Relief From Liability
Operative Text
(1) Unless otherwise agreed, a landlord who conveys premises subject to a rental agreement in a good faith sale to a bona fide purchaser is relieved of liability under the rental agreement and this chapter as to events occurring after written notice to the tenant of the conveyance. The landlord remains liable to the tenant for all security recoverable by the tenant pursuant to Title 70, chapter 25, and all prepaid rent. (2) Unless otherwise agreed, a manager of premises subject to a rental agreement is relieved of liability under the rental agreement and this chapter as to events occurring after written notice to the tenant of the termination of the manager's management duties.
Mont. Code Ann. § 70-33-304 addresses what happens to a landlord's or property manager's legal obligations when ownership or management of a rental property changes hands. Under this provision, a landlord who sells the property in a genuine, good-faith transaction is released from responsibilities under the rental agreement for events that occur after the tenant receives written notice of the sale — but the original landlord remains on the hook for returning any security deposit (as governed by Title 70, chapter 25) and any prepaid rent. Similarly, a property manager whose management duties end is released from liability for events occurring after the tenant receives written notice of that change.
Plain English — not legal advice.
Property owners and managers operating under Mont. Code Ann. § 70-33-304 generally ensure that written notice of a sale or management change is delivered to tenants promptly, since the liability cutoff is tied to that notice — not to the closing date or the internal end of a management contract. Compliant landlords who sell a property take care to transfer or return security deposits and prepaid rent to the appropriate party, because § 70-33-304 preserves the original landlord's responsibility for those funds regardless of the sale. Documenting the delivery of written notice and the handling of tenant funds at the time of conveyance is a standard practice for operators seeking a clean break from ongoing obligations.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Mont. Code Ann. § 70-33-304 protects tenants by ensuring that a change in ownership or management does not erase the original landlord's duty to account for security deposits (under Title 70, chapter 25) and any prepaid rent already paid. Tenants who receive written notice of a sale or management change should note the date of that notice, as it marks the point from which the new owner or remaining manager — rather than the prior landlord — generally bears responsibility for ongoing obligations. Tenants who believe their security deposit or prepaid rent has not been properly handled after a property transfer may explore options such as contacting a local tenant-rights organization or raising the issue as a claim under the applicable security deposit statutes.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 22, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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