Bill

Bill > AB157


WI AB157

WI AB157
Prohibiting filing or recording contracts for services or materials that do not improve real estate and providing a penalty. (FE)


summary

Introduced
04/02/2025
In Committee
06/20/2025
Crossed Over
Passed
Dead
03/23/2026

Introduced Session

Potential new amendment
2025-2026 Regular Session

Bill Summary

This bill provides that, with certain, specified exceptions, no person may file or record with, or present for filing or recording to, a register of deeds a non- improvement contract or a notice, memorandum, or other instrument related to a non-improvement contract (document) and authorizes the register of deeds to reject such a document and return it unrecorded. The bill defines Xnon-improvement contractY as a contract 1) under which a person agrees to perform, furnish, or procure any work, labor, service, materials, plans, or specifications that are not used or consumed for the improvement of real estate, and 2) that purports to create a lien, encumbrance, or other security interest on real estate. A person that violates the recording or filing prohibition in the bill may be fined not more than $10,000 or imprisoned for not more than nine months, or both. In addition, under the bill, an owner of real estate affected by such a filing or recording may bring a civil action against the person that files or records the document. If the owner prevails in the action, the court must order the real estate released from the effect of the document and may award actual damages, costs, and reasonable attorney fees. Because this bill creates a new crime or revises a penalty for an existing crime, the Joint Review Committee on Criminal Penalties may be requested to prepare a report. For further information see the local fiscal estimate, which will be printed as an appendix to this bill.

AI Summary

This bill addresses the filing and recording of non-improvement contracts with registers of deeds in Wisconsin. Specifically, the bill defines a "non-improvement contract" as an agreement to perform work or provide services that do not improve real estate and that attempts to create a lien or security interest on real estate. The bill prohibits persons from filing or recording such contracts or related documents with a register of deeds, giving registers of deeds the authority to reject and return such documents unrecorded. The legislation provides several exceptions to this prohibition, including instruments related to loan repayments, certain required filings, homeowners association documents, commercial leases, and specific types of liens. If someone violates this prohibition, the real estate owner can bring a civil action to have the document released, potentially recover actual damages, and receive attorney fees. Additionally, violators may face criminal penalties of up to $10,000 in fines or up to nine months in imprisonment, or both. The bill aims to prevent the improper recording of documents that could potentially cloud property titles or create unwarranted encumbrances on real estate without legitimate justification.

Committee Categories

Housing and Urban Affairs

Sponsors (16)

Last Action

Failed to pass pursuant to Senate Joint Resolution 1 (on 03/23/2026)

bill text


bill summary

Loading...

bill summary

Loading...
Loading...