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Your rights

Montana

Montana · home improvement

Your rights in Montana

Information, not legal adviceRules checked Oct 4, 2026

3 business days to cancel

If they contacted you first, away from their office

Cancel in writing by midnight of the third business day after signing; the clock waits for their notice. Money back in 10 days.

If you made the first contact, this right doesn't apply, but the federal 3-day rule may.

The 4 exceptions, in the rule's words
  • You started the contact with the contractor.
  • Before the sales attempt you already personally knew who the seller was, the business they represent, and the kind of goods or services offered.
  • Goods that cannot be returned to the seller in substantially the same condition as when you received them.
  • Sales of more than $5,000 of goods or services that are not mainly for personal, family or household use.
Read the full rule

When it applies

A personal solicitation sale: the contractor, or someone acting for the contractor, contacted you in person or by phone away from the contractor's place of business to sell goods or services, and you pay more than $25. If the sale was made by phone, you can cancel any time before you sign.

If a contractor came to your home uninvited and you signed for more than $25, you can cancel in writing until midnight of the third business day after you signed. The contractor must give you a cancellation notice, and the 3 days do not start until you get it. Your payments must be returned within 10 days. If the sale started with an uninvited phone call, you can cancel any time before you sign. If you contacted the contractor first, this Montana right does not apply, but the federal 3-day rule may.

MCA 30-14-504 · read on mca.legmt.gov · checked Oct 4, 2026 (official source, opens in a new tab)

License number

Check it before you sign

Since January 1, 2026, contractors with employees need a state license. Firms with no employees, and jobs under $2,500, are exempt.

Read the full rule

Since January 1, 2026, Montana construction contractors with employees must hold a construction contractor license from the Department of Labor and Industry. It replaced the old registration. Contractors with no employees are exempt, and so are single jobs under $2,500. Electricians and plumbers hold their own state licenses. Look the contractor up in DLI's license lookup before you sign.

Who needs one: Construction contractors with employees. In the statute, a construction contractor is a person or business that, as an independent business, offers, bids on or does work for someone else to build, alter, repair, add to, improve, move or demolish a building or other improvement attached to real estate, including installing carpeting or other floor covering and installing or repairing roofing or siding. DLI's FAQ adds that corporations and manager-managed LLCs need the license whatever their employee count. Jobs with a total price under $2,500 are exempt. The license replaced the old registration on January 1, 2026.

Who doesn't

  • Independent contractors who have no employees (they may register voluntarily).
  • Work on one job with a total price for labor and materials under $2,500. This does not apply when the job is part of a larger operation or is split into smaller contracts to avoid the law.
  • Electricians and plumbers licensed in Montana, working within the scope of their license.
  • Water well contractors licensed under Title 37, chapter 43, doing water well work.
  • Businesses licensed to sell, install or service fire suppression or fire protection equipment.
  • Sale or installation of finished products that are not built into the structure and do not become a permanent fixed part of it.
  • Owners working on their own property (limits apply to owners who build in order to sell soon after).
  • Workers whose only pay is wages from an employer.
  • Enrolled tribal members and businesses at least 51% owned by enrolled tribal members that work only within the exterior boundaries of an Indian reservation.

Issued by: Montana Department of Labor and Industry (DLI), Employment Standards Division, Construction Contractor License (CCL) Program

MCA 30-14-504 · read on mca.legmt.gov · checked Oct 4, 2026 (official source, opens in a new tab)

What the contract should include

Source: MT law

Some of these come from state guidance rather than a law. Each item's own words say which.

An estimate isn't the contract. Ask for all 6 in writing before you sign.

  • 3-day cancel noticeIf they contacted you first: show the rule's own words

    In the rule's words

    If a contractor sold to you in person away from its place of business, or by phone, without you starting the contact, and the price is over $25, it must give you a written notice that you may cancel within three business days. The notice must be in at least 10-point bold type, show the contractor's name and business address, and include a 'CONTRACT CANCELED' section you can sign. The federal FTC notice wording is also allowed.

  • Property & owner detailsThe lien law puts this on you: show the rule's own words

    In the rule's words

    Montana's lien law requires the homeowner to put two things in the contract with the original contractor: a street address or legal description that identifies the property being improved, and the homeowner's name and address.

  • Plain-language formPre-printed forms, $50,000 or less: show the rule's own words

    In the rule's words

    If the contractor uses a contract form it prepared in advance, for household work of $50,000 or less for a Montana resident, the form must be in plain language: everyday words, sections with captions, readable type, and ink that contrasts with the paper.

  • Written contract & contactsState advice, not a legal requirement: show the rule's own words

    In the state's guidance

    Montana's Office of Consumer Protection advises getting a written contract, never a verbal estimate. It should name the contractor and give the business location and phone numbers.

  • Dates, work, materials, permitsState advice, not a legal requirement: show the rule's own words

    In the state's guidance

    The Office of Consumer Protection also advises that the contract state when work begins, how long it will take and what it involves; the type, grade, quality and cost of materials; whether subcontractors will be used and who they are; any guarantees and warranties; and whether the contractor will get the needed licenses and permits.

  • Changes & problems in writingState advice, not a legal requirement: show the rule's own words

    In the state's guidance

    The Office of Consumer Protection advises putting every change, problem or complaint in writing between you and the contractor.

On signing day

  • Keep a signed copy
  • Find the cancel notice
Sources39 official pages · checked Oct 4, 2026

Notes from our check

  • Deposit: no Montana statute or rule that was read limits the deposit or down payment on a home improvement contract. Sources checked: MCA Title 37, chapter 45 (construction contractor licensing), the enrolled text of HB 239, the full text of all three ARM chapter 24.227 rules, the parts list of MCA Title 30, chapter 14 (which has no home-improvement part), and MCA Title 28, chapter 2, parts 21 and 22. The Montana DOJ Choosing a Contractor page only advises 'Try to avoid payment of advance fees.' depositCap is null, and the app must not state a Montana cap. Related rule: under MCA 37-45-301(1)(b), misappropriating a client's funds is unprofessional conduct for a licensed contractor, with a penalty of up to $5,000 under 37-45-302. A full-text MCA search could not be run (the legislature's search uses a Google custom search, and WebSearch was unavailable), so a trade-specific deposit rule elsewhere in the code cannot be ruled out.
  • Retainage is not a deposit cap: MCA 28-2-2110 limits retainage to 5% on construction contracts covered by Title 28, chapter 2, part 21, but under 28-2-2107 that part does not apply to residential projects or residential improvements costing less than $400,000.
  • New-home contracts only: MCA 28-2-2201 requires a written contract between a general contractor and an owner for building a new residence, with disclosures of general liability and workers' compensation coverage (or independent-contractor status), the billing cycle, a change-order procedure, a statement of inspections and tests, and an express warranty of at least 1 year. It does not apply to remodeling or repair contracts, so it is not listed in contractMust. Montana has no statute listing what a home improvement contract must contain; contractMust lines 4 to 6 are Office of Consumer Protection advice, not legal requirements.
  • Licensing changed on 2026-01-01. HB 239 (Ch. 644, L. 2025, effective January 1, 2026 per its section 22) replaced the old construction contractor registration (MCA Title 39, chapter 9, now shown as renumbered and repealed) with a DLI license under MCA Title 37, chapter 45. DLI says registrations active on December 31, 2025 were converted to the new license. The DOJ Choosing a Contractor page still says 'registered' and 'registration'. Some carried-over statute text (37-45-104(12) and (18), 37-45-204, 37-45-205) also still says 'registered'.
  • Who needs the license: the DLI program page says both 'All construction contractors with employees must register' and that from January 1, 2026 all construction contractors must be licensed. The DLI FAQ (rev. 05/19/2026) says the license targets contractors with employees, plus corporations and manager-managed LLCs regardless of employee count. The statute exempts 'an independent contractor who has no employees' (37-45-104(24)). DLI's ICEC page says independent contractors must have either an Independent Contractor Exemption Certificate or self-elected workers' compensation coverage (MCA 39-71-417). That is a workers' comp certificate, not a contractor license, and the app should not present it as one.
  • Local licensing: under MCA 37-45-204, cities and counties may not require their own registration, license or bond for contractors covered by the state program, other than a general business license fee charged to all businesses. They keep authority over contractors the state does not require to hold the license.
  • License number display: neither MCA chapter 37-45, the HB 239 text, the DLI pages, nor ARM chapter 24.227 requires the license number on contracts, bids or advertising. The three ARM rules were read in full through the rules.mt.gov public data service on 2026-10-04: 24.227.401 sets a $70 application and renewal fee, 24.227.403 requires a complete application, and 24.227.2301 lists unprofessional conduct (late notice of ownership or officer changes, violating laws on the occupation, and engaging an unlicensed person for licensed work). numberMustAppearOn is therefore empty: the app should tell homeowners to look the contractor up in DLI's licensee lookup, not that the number must be on the contract.
  • Bonds and workmanship: no section of chapter 37-45 or ARM 24.227 imposes a bond, although 37-45-204 still refers in carried-over wording to 'the requirement of a bond with the state of Montana named as obligee'. The DOJ page, written for the old registration, says registration did not mean the contractor was bonded and that the state licensing board did not investigate or compensate for poor workmanship. Whether this still holds under the new license, which allows discipline for unprofessional conduct, was not confirmed. The app should tell homeowners to ask for proof of insurance and any bond rather than assume either.
  • Cancellation details (MCA 30-14-504 to 506): cancellation happens when written notice is given. Mailed notice counts when deposited in the mail, properly addressed with postage. Any writing that shows you do not want to be bound is enough. The statutory card says to use certified mail, but failing to use certified mail does not cancel the cancellation if it is mailed in time. Until the seller gives the required notice, the buyer may cancel by any means, and the 3 days run only from when the notice is given (30-14-505(2)). If a seller does not return the down payment within 10 days, it owes the whole down payment, and a buyer who wins in court also gets $500 plus reasonable attorney fees and costs. A violation of Part 5 is also a violation of the Montana Consumer Protection Act (30-14-508). 'Business day' is not defined in Part 5. exceptions lists only the statutory exclusions relevant to home work; sales of insurance and of newspaper subscriptions by minor carriers are also excluded.
  • Phone sales: MCA 30-14-504(1) says that for a personal solicitation sale made by telephone the buyer may cancel at any time before signing. The statute does not say expressly whether the 3-business-day period after signing also applies to phone sales, so the plain text states only the before-signing right for phone sales. The app should not promise 3 days after signing for a sale that began with a phone call.
  • Federal overlap: the FTC Cooling-Off Rule (16 CFR 429.0) covers sales of $25 or more at the buyer's home ($130 or more at other temporary locations), including sales that follow the buyer's invitation; its business day is any day except Sunday and federal holidays. It has its own exclusions, for example a buyer-initiated bona fide emergency with a handwritten signed waiver, a sale negotiated at the seller's fixed retail location, a sale done entirely by mail or phone, and a visit the buyer requested to repair or maintain the buyer's personal property (extra goods or services sold during that visit are not excluded). Where a Montana exception (such as the homeowner contacting the contractor first) removes the state right, the federal rule may still give 3 business days. The app should not tell a homeowner they have no right to cancel just because they called first, and should not promise the federal right for a repair visit the homeowner requested. 16 CFR 429.2 says state laws continue to apply except where directly inconsistent with the federal rule.
  • Door-to-door disclosure (MCA 30-14-503): before any personal solicitation, the seller must give their name, the business name and what they are selling. In person, they must also show an ID card with their name and the business name. The civil fine is up to $1,000 per violation.
  • Liens: the DOJ page warns that homeowners can be responsible for supplies used on their home even after paying the contractor, or face a supplier's lien. Under MCA 71-3-531, subcontractors and suppliers must give the owner a notice of right to claim a lien by certified mail or personal delivery, generally within 20 days of first furnishing services or materials. An original contractor dealing directly with the owner does not have to give this notice, and it does not apply to dwellings for five or more families or to commercial work.
  • Construction defects: MCA 70-19-427 sets a notice-and-opportunity-to-repair process before a homeowner sues a contractor over a construction defect. Under 70-19-427(8), the process cannot be enforced unless the homeowner was given written notice of its requirements. A quote or contract may contain this notice.
  • Access: on 2026-10-04 the verifier loaded the DOJ Choosing a Contractor page directly (HTTP 200); the original researcher had met a Cloudflare challenge. rules.mt.gov renders only with JavaScript, so its rule text was read through the site's own public data service. WebSearch was unavailable (session search budget used up), so every page was reached by browsing the official MCA indexes and DLI, DOJ and SOS rule pages. The legislature URLs leg.mt.gov and archive.legmt.gov redirect to mca.legmt.gov, which is cited here.
  • Trades not decided: no statewide HVAC or mechanical license was found or verified, so hvac is left out of both lists. Water well contractors need a state license (MCA 37-43-302) and are exempt from the construction contractor license (37-45-104(20)). Septic system installers were not checked, so septic-well is left out of both lists.

General information from official Montana sources. For your situation, ask the state's consumer protection office or a lawyer.

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