For further information see the local fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SB172,1
1Section 1. 59.43 (1c) (intro.) of the statutes is amended to read: SB172,2,3259.43 (1c) Register of deeds; duties. (intro.) Subject to sub. subs. (1k) and 3(1m), the register of deeds shall: SB172,24Section 2. 59.43 (1k) of the statutes is created to read: SB172,2,9559.43 (1k) Authority to reject non-improvement contracts. If a register 6of deeds is presented with a non-improvement contract, as defined in s. 710.27 (1) 7(c), or a notice, memorandum, or other instrument related to a non-improvement 8contract, for recording, the register of deeds may reject the non-improvement 9contract, notice, memorandum, or other instrument and return it unrecorded. SB172,310Section 3. 706.05 (1) of the statutes is amended to read: SB172,2,1411706.05 (1) Subject to s. 59.43 (1k) and (2m), every conveyance, and every other 12instrument which that affects title to land in this state, shall be entitled to record in 13the office of the register of deeds of each county in which land affected thereby may 14lie. SB172,415Section 4. 710.27 of the statutes is created to read: SB172,2,1716710.27 Non-improvement contracts; recording prohibited. (1) 17Definitions. In this section: SB172,3,1
1(a) “Improvement” has the meaning given in s. 779.01 (2) (a). SB172,3,22(b) “Materials” has the meaning given in s. 779.01 (2) (bm). SB172,3,43(c) “Non-improvement contract” means a contract to which all of the following 4apply: SB172,3,751. The contract is a contract under which a person agrees to perform, furnish, 6or procure any work, labor, service, materials, plans, or specifications that are not 7used or consumed for the improvement of real estate. SB172,3,982. The contract purports to create a lien, encumbrance, or other security 9interest on real estate. SB172,3,1210(2) Recording prohibited. No person may file or record with, or present for 11filing or recording to, a register of deeds a non-improvement contract or a notice, 12memorandum, or other instrument related to a non-improvement contract. SB172,3,1313(3) Exceptions. Subsection (2) does not apply to any of the following: SB172,3,1514(a) An instrument that evidences security given for the repayment of a loan or 15other extension of credit or an instrument related to such an evidence of security. SB172,3,1716(b) An instrument required or allowed to be filed or recorded under s. 241.03 17(1), 710.18 (2) (a), or 710.20 or ch. 703 or 707. SB172,3,2018(c) A declaration, covenant, or other instrument related to the creation or 19operation of a homeowners’ association, housing cooperative, or other common 20interest community. SB172,3,2121(d) An instrument related to a commercial lease. SB172,4,222(e) A lien or encumbrance arising from a covenant or agreement contained in 23an instrument of conveyance that creates or imposes ongoing obligations, such as
1contributions for maintenance, access easements, commercial operations, or 2property management. SB172,4,33(f) A lien filed or recorded under s. 779.32. SB172,4,114(4) Remedies. (a) If a person files or records an instrument in violation of 5sub. (2), an owner of the real estate affected by the filing or recording may bring a 6civil action against the person. If the owner prevails in an action under this 7paragraph, the court shall enter an order releasing the real estate from the effect of 8the instrument and may award to the owner actual damages and the costs of the 9action, including, notwithstanding s. 814.04 (1), reasonable attorney fees incurred 10in connection with the action, and the owner may record the order with the register 11of deeds for the county in which the real estate is located. SB172,4,1312(b) In addition to the remedy under par. (a), whoever violates sub. (2) may be 13fined not more than $10,000 or imprisoned for not more than 9 months, or both. SB172,4,1614(c) This subsection does not apply to a register of deeds or other government 15employee who acts in the course of the employee’s official duties and files, enters, or 16records any instrument relating to title on behalf of another person. SB172,4,1817(d) The rights and remedies under this subsection are in addition to, and not 18in lieu of, any other rights or remedies that the owner may have. SB172,519Section 5. Initial applicability. SB172,4,2120(1) This act first applies to an instrument that is filed or recorded with a 21register of deeds on the effective date of this subsection.
