Assembly Bill 157 aims to prohibit the filing or recording of non-improvement contracts with a register of deeds in Wisconsin, establishing penalties for violations. A non-improvement contract is defined as one that involves work, labor, services, or materials not used for the improvement of real estate and that attempts to create a lien or encumbrance on real estate. The bill allows registers of deeds to reject such contracts and return them unrecorded. Violators of this prohibition may face fines of up to $10,000 or imprisonment for up to nine months.

Additionally, the bill provides a civil remedy for real estate owners affected by the improper filing of a non-improvement contract. If an owner prevails in a civil action against the violator, the court must order the release of the real estate from the document's effects and may award actual damages, costs, and reasonable attorney fees. The bill includes specific exceptions to the prohibition, such as instruments related to loans, homeowners associations, commercial leases, and certain liens. The legislation also amends existing statutes to incorporate these provisions and clarify the authority of registers of deeds.

Statutes affected:
Bill Text: 59.43(1c)(intro.), 59.43, 706.05(1), 706.05