Montana Code Annotated

Mont. Code Ann. § 37-51-321 (2026)

Unprofessional Conduct -- Sanction Of License

✓ current as of May 2026

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TITLE 37. PROFESSIONS AND OCCUPATIONS

CHAPTER 51. REAL ESTATE BROKERS AND SALESPERSONS

Part 3. Licensing

Unprofessional Conduct -- Sanction Of License

37-51-321. Unprofessional conduct -- sanction of license. (1) The following practices, in addition to the provisions of 37-1-316 and as provided in board rule, are considered unprofessional conduct for an applicant or a person licensed under this chapter:

(a) intentionally misleading, untruthful, or inaccurate advertising, whether printed or by radio, display, or other nature, if the advertising in any material particular or in any material way misrepresents any property, terms, values, policies, or services of the business conducted. A broker who operates under a franchise agreement engages in misleading, untruthful, or inaccurate advertising if in using the franchise name, the broker does not incorporate the broker's own name or the trade name, if any, by which the office is known in the franchise name or logotype. The board may not adopt advertising standards more stringent than those set forth in this subsection (1)(a).

(b) making any false promises of a character likely to influence, persuade, or induce;

(c) pursuing a continued and flagrant course of misrepresentation or making false promises through agents or salespersons or any medium of advertising or otherwise;

(d) use of the term "realtor" by a person not authorized to do so or using another trade name or insignia of membership in a real estate organization of which the licensee is not a member;

(e) failing to account for or to remit money coming into the licensee's possession when the money belongs to others;

(f) accepting, giving, or charging an undisclosed commission, rebate, or profit on expenditures made for a principal;

(g) acting in a dual capacity of broker and undisclosed principal in a transaction, including failing to disclose in advertisements for real property the person's dual capacity as broker and principal;

(h) guaranteeing, authorizing, or permitting a person to guarantee future profits that may result from the resale of real property;

(i) offering real property for sale or lease without the knowledge and consent of the owner or the owner's authorized agent or on terms other than those authorized by the owner or the owner's authorized agent;

(j) inducing a party to a contract of sale or lease to break the contract for the purpose of substituting a new contract with another principal;

(k) accepting employment or compensation for appraising real property contingent on the reporting of a predetermined value or issuing an appraisal report on real property in which the broker or salesperson has an undisclosed interest;

(l) as a broker or a salesperson, negotiating a sale, exchange, or lease of real property directly with a seller or buyer if the broker or salesperson knows that the seller or buyer has a written, outstanding listing agreement or buyer broker agreement in connection with the property granting an exclusive agency to another broker;

(m) soliciting, selling, or offering for sale real property by conducting lotteries for the purpose of influencing a purchaser or prospective purchaser of real property;

(n) as a salesperson, representing or attempting to represent a real estate broker other than the employer without the express knowledge or consent of the employer;

(o) failing voluntarily to furnish a copy of a written instrument to a party executing it at the time of its execution;

(p) unless exempted, paying a commission in connection with a real estate sale or transaction to a person who is not licensed as a real estate broker or real estate salesperson under this chapter;

(q) intentionally violating a rule adopted by the board in the interests of the public and in conformity with this chapter;

(r) failing, if a salesperson, to place, as soon after receipt as is practicably possible, in the custody of the salesperson's supervising broker, deposit money or other money entrusted to the salesperson in that capacity by a person, except if the money received by the salesperson is part of the salesperson's personal transaction;

(s) demonstrating unworthiness or incompetency to act as a broker or a salesperson;

(t) conviction of a felony;

(u) failing to meet the requirements of 37-56-105 through 37-56-107 or the rules adopted by the board governing property management while managing properties for owners;

(v) failing to disclose to all customers and clients, including owners and tenants, the licensee's contractual relationship while managing properties for owners;

(w) failing to maintain continuous professional liability insurance coverage that meets the requirements of 37-51-325: or

(x) aiding or abetting a person or organization in taking an adverse action against a licensee or a license applicant because of speech or conduct that is not made in the licensee's or license applicant's professional capacity that, had the adverse action been taken by a state actor, the speech or conduct would have been protected under the free exercise clause or the free speech clause of the Montana constitution or the United states constitution.

(2) (a) It is unlawful for a broker or salesperson to openly advertise property belonging to others, whether by means of printed material, radio, television, or display or by other means, unless the broker or salesperson has a signed listing agreement from the owner of the property. The listing agreement must be valid as of the date of advertisement.

(b) The provisions of subsection (2)(a) do not prevent a broker or salesperson from:

(i) including information on properties listed by other brokers or salespersons who will cooperate with the selling broker or salesperson in materials dispensed to prospective customers; or

(ii) hosting advertisements on a website under the control or apparent control of a broker or salesperson for which the advertisements are posted on the website by the owner or landlord of the property for sale or rent, as long as the broker or salesperson does not perform on behalf of the owner or landlord of the property any services for which a license as a broker or salesperson is required.

(3) The license of a broker or salesperson who violates this section may be sanctioned as provided in 37-1-312.

History: En. Sec. 14, Ch. 250, L. 1963; amd. Sec. 5, Ch. 261, L. 1969; amd. Sec. 188, Ch. 350, L. 1974; R.C.M. 1947, 66-1937; amd. Sec. 2, Ch. 188, L. 1979; amd. Sec. 1, Ch. 246, L. 1993; amd. Sec. 2, Ch. 565, L. 1995; amd. Sec. 5, Ch. 170, L. 1999; amd. Sec. 2, Ch. 294, L. 2001; amd. Sec. 3, Ch. 389, L. 2005; amd. Sec. 6, Ch. 27, L. 2017; amd. Sec. 2, Ch. 358, L. 2019; amd. Sec. 2, Ch. 250, L. 2023; amd. Sec. 6, Ch. 381, L. 2023; amd. Sec. 15, Ch. 482, L. 2023.

Notes of Decisions

Cited in 15 cases, 1979–2013 · leading case: Durbin v. Ross, 916 P.2d 758 (Mont. 1996).

Sort: Relevance Newest Treatment

Durbin v. Ross, 916 P.2d 758 (Mont. 1996). · cites it 8× “The Din-bins alleged that the Realtors violated § 37-51-321, MCA, of the Montana Real Estate Licensing Act and §§ 30-14-103 and 133, *475 MCA, of the Montana Consumer Protection Act.”

Cechovic v. Hardin & Assocs., Inc., 902 P.2d 520 (Mont. 1995). · cites it 6× “Section 37-51-321, MCA. Evidence was introduced that a jury could interpret to be violative of these provisions.”

Matter of Sorini, 717 P.2d 7 (Mont. 1986). · cites it 10× “Sorini's broker's license be revoked for violations of § 37-51-321, MCA, including failure to account for or remit money belonging to others, failure by a real estate salesperson to deposit money of others in a broker's trust account, and demonstrated unworthiness or…”

Mattingly v. First Bank of Lincoln, 947 P.2d 66 (Mont. 1997). · cites it 4× “Mattingly brought claims against Malek for actual fraud, negligent misrepresentation, violation of his statutory duty as a real estate licensee pursuant to § 37-51-321, MCA, and punitive damages. Finally, Mattingly brought claims against First Bank for constructive fraud,…”

Erickson v. Croft, 760 P.2d 706 (Mont. 1988). · cites it 3× “Section 37-51-321, MCA. Persons found to have violated the statutes pertaining to real estate brokers and salesmen may face criminal penalties and may also have damages in a civil action imposed against them by a “court of competent jurisdiction.”

First Trust Co. of Montana v. McKenna, 614 P.2d 1027 (Mont. 1980). · cites it 3× “In particular plaintiff cites section 37-51-321, MCA, which provides in pertiment part: “Revocation or suspension of license — initiation of proceedings — grounds.”

Hoefer v. Wilckens, 684 P.2d 468 (Mont. 1984). · cites it 6× “Third, the trial court found that the broker and agent failed to supply the purchasers with a copy of the assignment, as required by section 37-51-321, MCA. However, the agent was in no position to give the purchasers a copy of the assignment because the purchasers did not sign…”

Selvidge v. McBeen, 750 P.2d 429 (Mont. 1988). · cites it 3× “Section 37-51-321, MCA, prohibits real estate brokers from committing various acts.”

Vestre v. Lambert, 817 P.2d 219 (Mont. 1991). · cites it 2× “Plaintiffs maintained that Century 21, Lambert, and Conaway breached their duty to fully disclose as contained in § 37-51-321, MCA; and misrepresented the value and marketability of the units, amounting to misrepresentation, negligence and constructive fraud.”

Martin v. Vincent, 593 P.2d 45 (Mont. 1979). · cites it 5× “1947, now sections 37-51-321 MCA, of the Montana Real Estate License Act sets out the ethical standards for licensed real estate brokers doing business in Montana.”

White v. Dept. of Labor, 2007 MT 253N (Mont. 2007). · cites it 2× “¶4 A Board hearing examiner found White in violation of § 37-1-316(18), MCA, establishing generally accepted standards for practice, and § 37-51-321(2)(a), MCA, prohibiting a licensee from advertising property of others without a signed listing agreement.”

White v. Dep't of Labor & Indus., 175 P.3d 303 (Mont. 2007). · cites it 2× “A licensee may be found to have violated a provision of § 37-1-316, MCA, or a rule of professional conduct enacted by a governing board without proof that the licensee acted purposefully, knowingly, or negligently.”

Show all 15 citing cases →

— Mont. Code Ann. § 37-51-321(1) — 1 case

Cechovic v. Hardin & Assocs., Inc., 902 P.2d 520 (Mont. 1995). “Section 37-51-321, MCA. Evidence was introduced that a jury could interpret to be violative of these provisions.”

— Mont. Code Ann. § 37-51-321(1)(d) — 1 case

White v. Dep't of Labor & Indus., 175 P.3d 303 (Mont. 2007). “A licensee may be found to have violated a provision of § 37-1-316, MCA, or a rule of professional conduct enacted by a governing board without proof that the licensee acted purposefully, knowingly, or negligently.”

— Mont. Code Ann. § 37-51-321(16) — 1 case

Bradt v. Strout Realty, Inc., 478 F. Supp. 1259 (D. Mont. 1979).

— Mont. Code Ann. § 37-51-321(2)(a) — 1 case

White v. Dept. of Labor, 2007 MT 253N (Mont. 2007). “¶4 A Board hearing examiner found White in violation of § 37-1-316(18), MCA, establishing generally accepted standards for practice, and § 37-51-321(2)(a), MCA, prohibiting a licensee from advertising property of others without a signed listing agreement.”

— Mont. Code Ann. § 37-51-321(7) — 1 case

Martin v. Vincent, 593 P.2d 45 (Mont. 1979). “1947, now sections 37-51-321 MCA, of the Montana Real Estate License Act sets out the ethical standards for licensed real estate brokers doing business in Montana.”

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