Assembly Bill 157 aims to prohibit the filing or recording of non-improvement contracts with a register of deeds in Wisconsin. A non-improvement contract is defined as any agreement for work, labor, services, or materials that do not contribute to the improvement of real estate and that attempts to create a lien or encumbrance on the property. The bill allows registers of deeds to reject such documents and return them unrecorded. Violators of this prohibition may face fines of up to $10,000 or imprisonment for up to nine months. Additionally, property owners affected by such filings can bring civil actions against the offenders, seeking to have the property released from the effects of the non-improvement contract and potentially recovering damages and attorney fees.

The bill includes specific exceptions to the prohibition, allowing for the recording of certain instruments related to loans, homeowners associations, commercial leases, and other specified agreements. It also clarifies that the penalties do not apply to government employees acting in their official capacity. The legislation amends existing statutes and introduces new provisions to ensure that only contracts that genuinely improve real estate can be recorded, thereby protecting property owners from potentially harmful filings.

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