Senate Bill 172 aims to prohibit the filing or recording of non-improvement contracts with a register of deeds in Wisconsin, with specific exceptions. 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 purports to create a lien or encumbrance on real estate. The bill grants registers of deeds the authority 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, property owners affected by such filings can bring civil actions against the violators, seeking to have the real estate released from the effects of the improper document and potentially recovering damages and attorney fees.

The bill includes amendments to existing statutes, specifically amending sections 59.43 and 706.05, and creating new sections 59.43 (1k) and 710.27. The amendments clarify the duties of the register of deeds and outline the authority to reject non-improvement contracts. The new section 710.27 details the definitions, prohibitions, exceptions, and remedies associated with non-improvement contracts, ensuring that property owners have legal recourse if their property is improperly encumbered. The bill is cosponsored by multiple senators and representatives and has been referred to the Committee on Insurance, Housing, Rural Issues, and Forestry for further consideration.

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