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[MT] Can a landlord require a tenant to sign a settlement agreement before returning a security deposit?
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Hi there! Welcome to our service. My name is Liz, and I've been an attorney for more than a decade. I am here to assist with your legal concerns. No attorney-client relationship is formed from our conversation. So I can best help, could you share more details about your legal issue?
I moved out from a condo I leased for two years on 6-9-26. The landlord failed to return my deposit or issue me a letter within the 30 day period. I followed the Montana recommended protocol and sent a demand letter. The landlord's wife sent me a text saying I broke the lease with an unauthorized cat and visitors with a dog longer than 3 days. I reminded her that my lease allowed for two cats, and her husband okayed my family staying 4 days. In fact, they did not mention a break of the lease, give me a violation notice, or refuse to take my rent. They continued to take my rent and offered me an extended lease. I left the place in pristine condition with photos to prove it. It was not until I demanded my security deposit back that they came up with these excuses. The landlord texted me two days ago saying that upon further review, they would be returning my deposit in full, and asked if that was okay with me. I agreed to that via text. Today, I received a text from him saying he wanted me to sign a settlement agreement in order for him to send the check.
Montana law does not require me to sign a settlement agreement in order for me to get my security deposit back.
I am not sure if I should sign it or not.
You're correct, Montana law does not require you to sign anything to receive your deposit back. Under Mont. Code Ann. § 70-25-201, a landlord may only deduct from a security deposit for actual damage the tenant caused, unpaid rent, unpaid utilities, or cleaning costs, and under § 70-25-202, any such deductions must be itemized in writing within 30 days after the tenancy ends. He has zero right to withhold the deposit outside those grounds unless you caused damages. Trying to compel you to sign a settlement agreement as a condition of releasing money you're already entitled to would be unlawful, and if he wrongfully withholds it, § 70-25-204 lets you recover the withheld amount through a civil action, with the court able to award attorney's fees to whichever side prevails.
You'd have the right to use small claims court to sue for the deposit if needed. If I can be of help, please let me know.
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