Montana · State Breaking a Lease Guide

Montana Breaking Lease Laws: When a Tenant Can End a Lease Early

Montana protects servicemembers under federal law, lets a tenant leave an uninhabitable unit under the Residential Landlord and Tenant Act, and requires the landlord to re-rent at a fair rental under Montana Code Annotated section 70-24-426. Here is how breaking a lease works in 2026.

Breaking a lease early in Montana sits between two rules. A fixed-term lease is a binding contract, so a tenant generally cannot simply leave without consequences – but the Montana Residential Landlord and Tenant Act carves out grounds to terminate, and even when none applies, the landlord’s duty to re-rent at a fair rental limits what the tenant owes. Which rule applies decides the bill. This guide covers the statutory grounds, the federal servicemember protection, the habitability exits, the duty to mitigate, and what a tenant owes with no justification. If you are filling a unit a tenant left early, our overview of how to screen tenants step by step pairs well with the rules below.

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Video: a plain-language walkthrough of Montana early lease-termination rules – the legal grounds to break a lease and the landlord’s duty to mitigate.

Key Takeaways: Montana Breaking Lease Laws

• Servicemembers may terminate under the federal Servicemembers Civil Relief Act (50 U.S.C. 3955) with active-duty, change-of-station, or 90-day-plus deployment orders – the strongest, clearest exit.
• An uninhabitable unit is a real exit – Montana Code Annotated section 70-24-406 lets a tenant terminate (generally 14 days after written notice) when the landlord materially fails to maintain the unit under section 70-24-303 and does not cure.
• Montana has no stand-alone domestic-violence termination statute in the Residential Landlord and Tenant Act – a victim’s paths are a lease clause, a protective order under Title 40, chapter 15, or negotiation, so confirm options with a Montana attorney or legal aid.
• The landlord must re-rent at a fair rental under Montana Code Annotated section 70-24-426 – so with no legal ground the tenant owes rent only until a reasonable re-rental, not the full remaining term.
• Essential-services cutoffs trigger extra remedies – under section 70-24-408 a tenant whose heat, water, or other essential service is cut off may procure it and deduct the cost, get substitute housing, or recover damages.
• The deposit returns in 10 or 30 days under Montana Code Annotated section 70-25-202 – 10 days with no deductions, 30 days with an itemized list of damage and cleaning charges.
• A flat early-termination penalty is vulnerable where it far exceeds the landlord’s actual mitigated loss; a freely negotiated buyout signed at the exit is different and generally enforceable.

Legal Reasons to Break a Lease in Montana

Montana recognizes fewer named early-termination grounds than states like California, but the ones it has are real and enforceable. Each has its own notice clock and documentation requirement, and getting those details right is what separates a penalty-free exit from full contract liability. The grounds below cover military servicemembers, an uninhabitable unit, essential-service cutoffs, and landlord misconduct – and we are candid about where Montana law has a gap. Our companion guide to Montana lease termination laws covers the separate mechanics of ending a month-to-month or fixed-term tenancy at its natural end.

Military Servicemembers – SCRA, 50 U.S.C. Section 3955

The strongest early-termination right in Montana is federal and overrides anything the state’s law or the lease says. Under the Servicemembers Civil Relief Act, codified at 50 U.S.C. section 3955, a tenant who enters active duty, or who is already on active duty and receives orders for a permanent change of station, or a deployment of 90 days or more, may terminate a residential lease. The tenant delivers written notice with a copy of the orders to the landlord by hand, by private courier, or by return-receipt mail. The lease then terminates 30 days after the first date on which the next rent payment is due following delivery of the notice. Montana has no separate state servicemember add-on, so the federal floor controls. The mechanics are covered in depth in the dedicated SCRA section below.

Uninhabitable Unit – Sections 70-24-303 and 70-24-406

An uninhabitable unit is Montana’s clearest non-military exit. Under Montana Code Annotated section 70-24-303, the landlord must comply with building and housing codes that materially affect health and safety, keep the unit fit and habitable, maintain common areas and the electrical, plumbing, heating, and other systems, and supply running water, reasonable hot water, and heat between October 1 and May 1. When the landlord materially fails to do so, section 70-24-406 gives the tenant a path out: written notice describing the breach and stating that the agreement terminates if the landlord does not fix it. The repair standards are detailed in our guide to Montana habitability laws.

Essential-Service Cutoffs – Section 70-24-408

Montana singles out essential services for their own remedy. Under section 70-24-408, when the landlord purposely or negligently fails to supply running water, hot water, heat, electricity, gas, or another essential service, the tenant – after written notice – may procure the service and deduct its actual cost from rent, recover damages based on the diminished value of the unit, or procure reasonable substitute housing and be excused from rent during the cutoff. A prolonged, uncured loss is also strong evidence the unit is no longer habitable, which feeds back into a termination under section 70-24-406.

Landlord Harassment or Unlawful Entry – Section 70-24-312

Landlord misconduct is its own ground. Section 70-24-312 limits when a landlord may enter, generally requiring at least 24 hours’ notice and entry only at reasonable times, except in an emergency. A landlord who repeatedly enters unlawfully, harasses the tenant, or abuses the right of access can make the unit unfit for its intended use. The tenant’s response runs through section 70-24-406 – written notice, a chance to cure where appropriate, and termination or an injunction and damages for a serious or repeated violation. Our Montana landlord entry laws guide covers the 24-hour rule in full.

Domestic Violence – the Honest Montana Answer

Here is where Montana differs sharply from many states, and where a wrong assumption can hurt a vulnerable tenant. Montana’s Residential Landlord and Tenant Act does not contain a stand-alone early-termination statute for victims of domestic violence, sexual assault, or stalking the way California’s Civil Code section 1946.7 does. A 2013 bill that would have added tenant protections of that kind did not become law, so there is no Montana Code section a victim can cite to walk away penalty-free on that ground alone. We are stating this plainly rather than citing a statute number that does not exist, because a confident but wrong citation is worse than the truth.

That does not leave a Montana victim without options. A protective order under Title 40, chapter 15 can exclude an abuser from the residence and address immediate safety. Some leases include a domestic-violence release clause – read the lease. And the duty to mitigate still applies, so a victim who must leave is, at most, liable for the rent lost until a reasonable re-rental, not the whole term. Because the gap is easy to misstate and the stakes are high, a victim should confirm current options with Montana’s lease-termination framework and a Montana attorney or Montana Legal Services first.

The Landlord’s Duty to Mitigate in Montana

Montana is a duty-to-mitigate state, and that single rule does more than any other to limit a tenant’s exposure when there is no clean statutory exit. Under Montana Code Annotated section 70-24-426, when a tenant abandons the unit, the landlord must make reasonable efforts to rent it at a fair rental – the landlord cannot let the unit sit empty and bill the departed tenant for the whole remaining term. If the landlord makes no genuine effort, or treats the abandonment as a surrender, the rental agreement terminates as of the date the landlord had notice of the abandonment, which can cut the claim off entirely.

So a Montana tenant who leaves early generally owes rent only for the time the unit sits vacant before a reasonable re-rental would have filled it, plus the landlord’s actual re-rental costs – not the rest of the lease. That is why the documented re-rental record decides what the tenant actually owes.

What a Tenant Actually Owes – A Worked Example

Put real numbers on it. Rent is one thousand five hundred dollars a month, the tenant leaves with six months left, and a diligent Montana landlord would re-rent in about two months. The remaining rent is nine thousand dollars; subtract what a reasonable re-rental recovers – four months, or six thousand dollars – because section 70-24-426 measures the landlord’s recovery against the loss a good-faith re-rental could have avoided. The tenant’s exposure is the two-month vacancy gap of three thousand dollars, plus the landlord’s actual re-rental costs such as advertising – not the full nine thousand.

The arithmetic flips against the landlord who does nothing. If that same landlord never lists the unit and lets it sit all six months, section 70-24-426 still caps recovery at what a reasonable re-rental would have avoided, so the unmitigated six thousand dollars is lost and the agreement can terminate as of the abandonment date. That is why the documented listing date, asking rent, showings, and applications are the evidence that decides the bill.

Military Servicemembers and the SCRA – 50 U.S.C. Section 3955

The Servicemembers Civil Relief Act is federal law, so it preempts state landlord protections and any lease clause that tries to waive it is void. Section 3955 of Title 50 covers residential leases, and its mechanics are precise: a Montana landlord who follows them faces no real exposure, and one who resists faces federal liability.

The right is triggered in two ways. First, a person who signs a lease and then enters military service may terminate it. Second, a servicemember already in service who receives orders for a permanent change of station, or for a deployment of 90 days or more, may terminate. In either case the servicemember delivers written notice with a copy of the orders to the landlord – by hand, by private business carrier, or by return-receipt mail.

The effective date is the part most people miss. For a lease that pays rent monthly, termination takes effect 30 days after the first date on which the next rent payment is due after the notice is delivered – not the day the notice landed. Rent is owed only through that effective date and prorated; any advance rent beyond it is refunded, and the deposit is returned under the normal Montana rules in section 70-25-202.

A Montana landlord may not charge an early-termination fee, impose a penalty, or hold the servicemember liable for the unpaid balance of the term, and may not refuse to return the deposit on that basis. The SCRA also blocks a landlord from evicting a servicemember or dependents from a modest-rent home during service without a court order. Because Montana has no state servicemember statute layered on top, the SCRA is the whole of the protection.

Uninhabitable Units and Repair Remedies in Montana

Montana habitability law gives a tenant facing a serious defect a graduated set of remedies, and choosing the right one matters – the wrong move can leave the tenant owing rent or facing eviction. Section 70-24-303 sets the standard: the landlord must keep the unit fit and habitable, comply with health-and-safety building codes, maintain the systems and common areas, and supply running water, reasonable hot water, and heat from October 1 to May 1.

When the landlord materially fails to maintain the unit, section 70-24-406 supplies the tenant’s remedies, and they are cumulative. The first is termination: the tenant gives written notice describing the breach and stating that the agreement terminates if the landlord does not remedy it – generally in not less than 14 days for a material non-emergency failure, and on the order of three working days for an emergency. If substantially the same breach recurs within six months, the tenant can terminate on 14 days’ notice without giving a fresh cure period.

The second remedy is repair-and-deduct: after proper notice and the landlord’s failure to act, the tenant may arrange the repair and deduct its cost from rent, capped at one month’s rent – the remedy a tenant uses to stay and fix a discrete problem rather than leave. The third path is actual damages and injunctive relief – a court order requiring the landlord to perform, plus compensation for the loss. A tenant who wants out should document the defect, the dated written notice, the landlord’s non-response, and the move-out date, because that record is what proves the termination was lawful.

Security Deposit at an Early Exit – Section 70-25-202

The deposit is handled separately from the rent claim, and Montana’s deadlines are specific. Under Montana Code Annotated section 70-25-202, the landlord must return the deposit within 10 days when there is no rent due, no damage, and no cleaning required. When there are deductions, the landlord has 30 days from termination of the tenancy or surrender and acceptance of the premises to deliver a written list of the rent due and the damage and cleaning charges, together with any refund owed. The deposit may be applied to unpaid rent, to damage beyond ordinary wear, and to cleaning – but not to ordinary wear, and not as a substitute for the mitigation analysis.

At a lease break the two rules interact directly: the landlord may apply the deposit to the rent the tenant owes after mitigation, plus documented damage and cleaning, but cannot inflate the deduction to the full remaining term, because the underlying rent claim is still capped by the duty to re-rent under section 70-24-426. A landlord who keeps the deposit without the required list, or in bad faith, exposes the claim to challenge. Our overview of Montana security deposit laws covers the deduction rules and the itemization requirement in full.

Early-Termination Fees and Buyouts in Montana

Many Montana leases include a flat early-termination or buyout fee – one month’s rent, two months’ rent, or a fixed figure – that the landlord treats as the price of leaving early. Whether it holds up depends on the clause and the facts. Montana measures a landlord’s actual recovery by mitigated damages under section 70-24-426: the rent lost before a reasonable re-rental, plus actual costs. A flat penalty far larger than that real loss is vulnerable to challenge as an unenforceable penalty rather than a reasonable, good-faith estimate of damages agreed in advance.

The practical consequence runs both ways. A tenant who signed a lease with a large flat fee is not automatically bound to pay it if the landlord re-rents quickly and the true mitigated loss is far smaller. Conversely, a genuine, mutually negotiated buyout – the tenant and landlord agreeing at the exit on a sum to release the tenant cleanly – is a settlement, not a pre-set penalty, and is generally enforceable. The line is between a penalty written into the lease in advance that dwarfs the actual loss (suspect) and a freely bargained release signed at the exit (valid).

When There Is No Legal Justification in Montana

If no statutory ground and no servicemember protection applies, a Montana tenant who breaks the lease is responsible for the rent – but not automatically for the entire remaining term. Because the landlord must make reasonable efforts to re-rent at a fair rental, the tenant’s liability runs only until the unit is re-rented or reasonably should have been. The tenant’s best move is to manage the mitigation directly: give written notice of the move-out date, present a qualified replacement tenant, and document everything – a tenant who hands the landlord an approved replacement effectively performs the mitigation and cuts the vacancy to near zero.

Walking away silently is the costly version of the same exit. A tenant who simply stops paying and disappears still owes the mitigated rent under section 70-24-426, and the landlord may apply the deposit to it under section 70-25-202 – but the tenant loses the chance to shape the re-rental, protect the deposit, and avoid a collections or small-claims action.

Subletting, Assignment, and the No-Sublet Clause

Subletting or assigning the lease is often the cleanest way to leave early, and it interacts with the duty to mitigate in the tenant’s favor. In a sublet, the original tenant stays on the hook to the landlord but installs a new occupant who pays the rent; in an assignment, the new tenant steps fully into the lease. Most Montana leases require the landlord’s written consent before either, and that requirement is enforceable – a tenant who sublets in violation of a no-sublet clause has breached the lease and can face termination under section 70-24-422.

But the no-sublet clause does not let the landlord ignore mitigation. When a departing tenant presents a qualified, creditworthy replacement in writing and the landlord unreasonably refuses, that refusal works against the landlord: by rejecting a tenant who would have filled the unit, the landlord undercuts the reasonable-efforts duty in section 70-24-426, and the rent the replacement would have paid becomes loss the landlord could have avoided.

Early Termination, Retaliation, and Fair Housing in Montana

How a landlord responds to an early-termination request is governed by fair housing and anti-retaliation principles. A Montana landlord may not penalize a tenant for invoking a servicemember protection or a habitability remedy, and may not apply a harsher early-exit standard because of race, color, religion, sex, national origin, familial status, or disability. Retaliating against a tenant who in good faith requested a repair or complained about a defect can itself create liability. The safeguard is a uniform policy: honor the statutory grounds, mitigate in every case, and treat comparable tenants the same. For the federal baseline on protected characteristics, see our Fair Housing Act guide for landlords.

Screening the Replacement Tenant

When a tenant leaves early, filling the unit is itself the duty to mitigate – and screening is what makes the replacement reliable. Screen every applicant to the same standard: get written consent, pull a consumer report for a permissible purpose under the federal Fair Credit Reporting Act, and send an adverse action notice if the report drives a denial. A consistent process fills the vacancy fast – protecting the section 70-24-426 mitigation record – and keeps the landlord clear of fair housing trouble. Our Montana tenant screening laws page and the broader tenant screening laws by state guide cover the screening half of the picture, and our how to verify tenant income walkthrough rounds out the financial check.

Step-by-Step: Breaking a Lease in Montana

Whether you are the tenant invoking a ground or the landlord responding, the order of operations is the same, and following it keeps the exit defensible.

1. Identify the legal ground first. Check whether a real exit applies – a servicemember order under the SCRA, an uninhabitable unit under sections 70-24-303 and 70-24-406, or an essential-service cutoff under section 70-24-408. The ground decides the notice and whether any penalty is owed. If none applies, plan for a mitigated exit.
2. Match the notice clock to the ground. The SCRA terminates 30 days after the next rent due date; a habitability termination under section 70-24-406 generally runs on 14-day written notice with a cure period, shorter for an emergency. A no-ground exit needs written notice of the move-out date so the landlord can begin to mitigate.
3. Gather the documentation. Military orders for an SCRA termination; dated photos, repair requests, and any inspection record for a habitability claim; written records of unlawful entry or an essential-service cutoff.
4. Deliver written notice with proof. Put the ground, the effective date, and a forwarding address in writing, and deliver it by a method that creates a record – personal delivery with a signed receipt or return-receipt mail.
5. Mitigate, or help the landlord mitigate. With no statutory ground, the duty to re-rent at a fair rental under section 70-24-426 caps the bill; a tenant who presents a qualified replacement effectively performs the mitigation.
6. Close out the deposit. Under section 70-25-202 the landlord returns the deposit in 10 days with no deductions, or in 30 days with an itemized list of charges and any refund.

Montana Lease-Break Documentation Checklist

Keep this file from the day the tenant first raises an early exit. It is the record that answers a disputed balance or a fair housing inquiry.

• The written termination request and the legal ground claimed.
• The supporting documentation – military orders, dated repair notices and photos, or records of unlawful entry or an essential-service cutoff.
• The written notice itself, with its delivery date and proof of service.
• For a habitability exit, the dated repair notices, the landlord’s response or silence, and the move-out date.
• The re-rental record: the listing date, the asking rent, showings, and applications received – the section 70-24-426 evidence.
• The date the unit was actually re-rented and the new rent.
• The deposit accounting and itemized list delivered within the 10-day or 30-day deadline under section 70-25-202.

Common Mistakes That Create Liability

The recurring Montana errors are assuming a domestic-violence termination statute exists when it does not, billing a departed tenant for the full remaining term without trying to re-rent, treating the lease’s flat fee as the final number, mishandling the deposit deadlines under section 70-25-202, and failing to document the re-rental effort. Almost every one turns on the duty to mitigate, so the records that prove honored grounds and a diligent re-rental are the strongest rebuttal to a disputed balance. The tenant’s mirror-image mistake is walking away without notice and losing the chance to shape the mitigation.

Montana Breaking Lease Laws: FAQ

Can a Montana tenant break a lease early?

Sometimes without penalty, but Montana is narrower than many states. A fixed-term lease is a binding contract. The clear penalty-free exits are a servicemember termination under the federal SCRA (50 U.S.C. 3955) and a habitability-based termination under Montana Code Annotated section 70-24-406 when the landlord fails to maintain the unit after written notice. Even with no legal ground, the landlord’s duty to mitigate under section 70-24-426 limits what the tenant owes to the rent lost before a reasonable re-rental.

Does Montana have a domestic-violence lease-termination statute?

Montana’s Residential Landlord and Tenant Act does not contain a stand-alone early-termination statute for domestic-violence victims the way California and many other states do. A 2013 bill that would have added one did not become law. A Montana victim’s real options are a lease clause if one exists, a protective order under Title 40, chapter 15 that can exclude the abuser from the home, and negotiation with the landlord. Because this gap is easy to misstate, a victim should confirm current options with Montana Legal Services or an attorney.

Can a Montana tenant break a lease for military service?

Yes. Under the federal Servicemembers Civil Relief Act, 50 U.S.C. section 3955, a tenant who enters active duty or who is on active duty and receives permanent-change-of-station orders or deployment orders of 90 days or more may terminate the lease with written notice and a copy of the orders. For a monthly lease, termination is effective 30 days after the next rent payment is due following the notice. Montana has no separate state servicemember add-on; the federal floor governs.

Does a Montana landlord have to mitigate damages?

Yes. Under Montana Code Annotated section 70-24-426, when a tenant abandons the unit the landlord must make reasonable efforts to rent it at a fair rental. The departed tenant’s liability is reduced by the rent a reasonable re-rental would recover, so the tenant does not automatically owe the entire remaining term. If the landlord makes no genuine effort, the agreement can terminate as of the date the landlord had notice of the abandonment.

Can a Montana tenant break a lease if the unit is uninhabitable?

Possibly. Montana Code Annotated section 70-24-303 requires the landlord to keep the unit fit and habitable. If the landlord materially fails to do so, section 70-24-406 lets the tenant give written notice and, if the breach is not cured, terminate the rental agreement, generally 14 days after the notice for a non-emergency material breach. The tenant may also repair and deduct up to one month’s rent, and section 70-24-408 adds remedies when an essential service such as heat or water is cut off.

How much notice must a Montana tenant give to terminate for a landlord violation?

Under Montana Code Annotated section 70-24-406, for a material non-emergency failure to maintain, the tenant gives written notice describing the breach and stating that the agreement terminates in not less than 14 days if the landlord does not fix it. For an emergency, the landlord generally has about 3 working days to act. A repeat of substantially the same violation within 6 months can be terminated on 14 days’ notice without a further cure chance.

When must a Montana landlord return the security deposit after a lease break?

Under Montana Code Annotated section 70-25-202, the landlord must return the deposit within 10 days when there is no rent due, no damage, and no cleaning charge. When there are deductions, the landlord has 30 days from termination or surrender to deliver a written list of the rent due and the damage and cleaning charges along with any refund. The deposit may be applied to mitigated rent owed and to damage beyond ordinary wear, but not to the full remaining term.

What does a Montana tenant owe for breaking a lease without legal grounds?

Rent for the time the unit sits vacant until a reasonable re-rental would have filled it, plus the landlord’s actual re-rental costs such as advertising. Because Montana Code Annotated section 70-24-426 requires the landlord to make reasonable efforts to re-rent at a fair rental, the tenant does not automatically owe the entire remaining term. A landlord who never tries to re-rent forfeits the rent that effort would have recovered.

What notice does a Montana landlord have to give to enter the unit?

Under Montana Code Annotated section 70-24-312, the landlord must give the tenant at least 24 hours’ notice of intent to enter and may enter only at reasonable times, except in an emergency or where entry is impracticable. A landlord who repeatedly enters unlawfully or uses entry to harass can give the tenant grounds to obtain an injunction, recover damages, or in a serious case terminate under section 70-24-406.

Can a Montana tenant sublet to get out of a lease?

Often, but most Montana leases require the landlord’s written consent, and subletting without it breaches the lease. The upside is mitigation: if the tenant presents a qualified replacement and the landlord unreasonably refuses, that refusal works against the landlord, because the landlord chose the resulting vacancy instead of accepting a tenant who would have paid the rent.

Is a flat early-termination fee enforceable in Montana?

It depends on the clause and the facts. Montana measures a landlord’s recovery by actual, mitigated damages under the duty to re-rent at a fair rental, so a flat penalty far larger than the real loss is vulnerable to challenge as an unenforceable penalty rather than a reasonable estimate of damages. A freely negotiated buyout the tenant and landlord agree to at the exit is different and is generally enforceable. Read the lease and, for a large fee, get advice before paying.

What happens if a Montana tenant just stops paying and leaves?

The tenant remains liable for the rent that accrues, reduced by what a reasonable re-rental would recover under Montana Code Annotated section 70-24-426, plus the landlord’s actual costs. The landlord may also apply the security deposit to the mitigated balance under section 70-25-202. Walking away without notice does not end the obligation and can leave the tenant owing the vacancy gap and facing a collections or small-claims action.

Does selling the property or the landlord moving in end a Montana lease early?

No. A sale does not terminate an existing fixed-term lease in Montana; the buyer takes title subject to the tenant’s rights through the end of the term. A landlord wanting to move in cannot cut a fixed-term lease short without a statutory ground or the tenant’s agreement. For a month-to-month tenancy, either reason can support a standard termination on the required written notice, but a fixed term generally runs to its end date.

Related Montana Breaking a Lease and Rental Guides

• Breaking lease laws by state – compare Montana to the rest of the country.
• Montana lease termination laws – month-to-month notice, non-renewal, and holdover rules.
• Montana security deposit laws – the 10-day and 30-day return deadlines and deductions.
• Montana eviction notice laws – notice periods and the eviction timeline.
• Montana habitability laws – the repairs a landlord must make and the repair remedies.
• Montana landlord entry laws – the 24-hour notice rule under section 70-24-312.
• Montana rent increase laws – notice periods and the limits on raising rent.
• Montana tenant screening laws – what you can check before renting.
• Free Montana lease agreement form – a configurable, fillable Montana lease PDF.
• Tenant screening laws by state – screen the replacement tenant.

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About the Author

Published by Tenant Screening Background Check · Editorial Team

Established 2004. Our editorial team has spent two decades helping landlords and property managers run lawful, FCRA-compliant tenant screening across all 50 states. We translate state landlord-tenant codes and federal screening rules into processes you can actually follow.

Updated 2026

Legal Disclaimer

This article is for general informational purposes only and is not legal advice. Montana and federal laws change, and how they apply depends on your specific facts. Before acting on any termination, fee, deposit, or fair housing question – and especially before relying on a domestic-violence exit, where Montana’s statute differs from many states – consult a licensed attorney in Montana. Reading this page does not create an attorney-client relationship.