Mortgage payoff statements
Under current law, a secured creditor must provide a payoff statement to
certain persons, upon request. Under current law, a secured creditor may not qualify
a payoff amount or state that the payoff amount is subject to change before the payoff
date. Under the bill, a secured creditor may qualify a payoff amount, state that the
payoff amount is not practicably determinable, or state that the payoff amount is
subject to change before the payoff date if the security instrument secures
nonresidential real property and the payoff statement provides instructions for how
to obtain an updated payoff amount at no charge.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB607,1 1Section 1. 705.15 (1) of the statutes is renumbered 705.15 (1m) (intro.) and
2amended to read:
AB607,3,5
1705.15 (1m) (intro.) An interest in real property that is solely owned, owned
2by spouses as survivorship marital property, or owned by 2 or more persons as joint
3tenants
Any of the following interests in real property may be transferred without
4probate to a designated TOD beneficiary as provided in this section on the death of
5the sole owner or the last to die of the multiple owners.:
AB607,2 6Section 2. 705.15 (1b) of the statutes is created to read:
AB607,3,77 705.15 (1b) In this section:
AB607,3,118 (a) “Person” means an individual, corporation, business trust, estate, trust,
9partnership, limited liability company, association, joint venture, government,
10government subdivision, agency or instrumentality, public corporation, or any other
11legal or commercial entity.
AB607,3,1312 (b) “Sole owner” means the owner of an interest in real property described in
13sub. (1m) (a) to (c).
AB607,3,1514 (c) “TOD beneficiary” means a person designated as a beneficiary in a
15document that complies with sub. (2) (a).
AB607,3 16Section 3. 705.15 (1m) (a) to (e) of the statutes are created to read:
AB607,3,1817 705.15 (1m) (a) An interest in real property that is owned by one individual and
18is not concurrently owned by any other person.
AB607,3,2019 (b) A fractional interest in real property that is owned by an individual as a
20tenant in common.
AB607,3,2321 (c) An interest in real property that is owned by a spouse as marital property.
22This paragraph does not include an interest in real property owned as survivorship
23marital property.
AB607,3,2524 (d) An interest in real property owned by spouses as survivorship marital
25property.
AB607,4,1
1(e) An interest in real property owned by 2 or more individuals as joint tenants.
AB607,4 2Section 4. 705.15 (2) of the statutes is renumbered 705.15 (2) (a) (intro.) and
3amended to read:
AB607,4,54 705.15 (2) (a) (intro.) A TOD beneficiary may be designated on a deed document
5that evidences ownership of the property interest in includes all of the following:
AB607,4,7 61. The name of the owner or owners of the interest in real property that will be
7transferred.
AB607,4,17 8(b) The designation of a TOD beneficiary may be made by including use of the
9words “transfer on death" or “pay on death," or the abbreviation “ TOD" or “POD,"
10after the name of the owner or owners of the property and before the name of the TOD
11beneficiary or beneficiaries. The owner or owners may designate one or more persons
12as a primary TOD beneficiary and may designate one or more persons as a contingent
13TOD beneficiary if a primary TOD beneficiary does not survive the sole owner or the
14last to die of multiple owners.
The designation may be included on the original deed
15document that passes the property interest to the owner or owners or may be made
16at a later time by the sole owner or all then surviving owners by executing and
17recording another deed document that designates a TOD beneficiary.
AB607,4,22 18(c) A TOD beneficiary designation is not effective unless the deed document on
19which the designation is made is recorded, and any fees required to record the
20document, are submitted for recording to the register of deeds office of the county in
21which the real property is located before the death of the sole owner or the last to die
22of multiple owners
.
AB607,5 23Section 5. 705.15 (2) (a) 2., 3. and 4. of the statutes are created to read:
AB607,4,2424 705.15 (2) (a) 2. The name of the designated TOD beneficiary.
AB607,4,2525 3. That the transfer is effective only upon the death of the owner or owners.
AB607,5,3
14. If the interest that will be transferred is an interest in real property owned
2by a spouse as marital property, the signatures of both spouses who have an interest
3in the marital property.
AB607,6 4Section 6. 705.15 (3) of the statutes is amended to read:
AB607,5,135 705.15 (3) The designation of a TOD beneficiary on a deed document does not
6affect ownership of the property until the owner's death of the sole owner or the last
7to die of multiple owners regardless of whether the document provides otherwise
.
8The designation may be canceled or changed at any time by the sole owner or all then
9surviving owners, without the consent of the TOD beneficiary, by executing and
10recording another deed document that designates a different TOD beneficiary or no
11beneficiary. The recording of a deed document that designates a TOD beneficiary or
12no beneficiary revokes any designation made in a previously recorded deed document
13relating to the same property interest.
AB607,7 14Section 7. 705.15 (4) of the statutes is amended to read:
AB607,5,2215 705.15 (4) On the death of the sole owner or the last to die of multiple owners,
16ownership of the interest in the real property passes, subject to any lien or other
17encumbrance against the real property, to the designated TOD beneficiary or
18beneficiaries who survive all owners and to any predeceased beneficiary's issue who
19would take under s. 854.06 (3). If no TOD beneficiary or predeceased TOD
20beneficiary's issue who would take under s. 854.06 (3) survives the death of all
21owners, the interest in the real property passes to the estate of the deceased sole
22owner or the estate of the last to die of the multiple owners.
AB607,8 23Section 8. 705.15 (7) of the statutes is created to read:
AB607,6,3
1705.15 (7) The capacity required to designate a TOD beneficiary or to revoke
2a designation of a TOD beneficiary is the same as the capacity to make or revoke a
3will under s. 853.01.
AB607,9 4Section 9. 705.15 (8) of the statutes is created to read:
AB607,6,115 705.15 (8) Unless previously adjudicated in a formal testacy proceeding or
6otherwise barred, the claim of any claimant to recover real property transferred to
7a TOD beneficiary under this section is barred unless, by no later than 120 days after
8the death of the sole owner or the last to die of multiple owners, a complaint is filed
9in an action in which the relief demanded may confirm or change interests in the real
10property transferred under this section and a lis pendens is filed or recorded in each
11county where any part of the real property is located.
AB607,10 12Section 10. 708.15 (3) (d) (intro.) of the statutes is amended to read:
AB607,6,1413 708.15 (3) (d) (intro.) A Except as provided in par. (f) 2., a payoff statement
14must shall contain all of the following:
AB607,11 15Section 11. 708.15 (3) (f) of the statutes is renumbered 708.15 (3) (f) 1. and
16amended to read:
AB607,6,1917 708.15 (3) (f) 1. A If the security instrument secures an interest in residential
18real property, a
secured creditor may not qualify a payoff amount or state that the
19payoff amount is subject to change before the payoff date.
AB607,12 20Section 12. 708.15 (3) (f) 2. of the statutes is created to read:
AB607,6,2321 708.15 (3) (f) 2. A secured creditor may qualify a payoff amount or state that
22the payoff amount is not practicably determinable or is subject to change before the
23payoff date if all of the following apply:
AB607,6,2524 a. The security instrument secures an interest in real property that is not
25residential real property.
AB607,7,4
1b. The payoff statement provides instructions for how the entitled person or an
2authorized agent of the entitled person may obtain an updated payoff amount at no
3charge during the secured creditor's normal business hours on the payoff date or the
4immediately preceding business day.
AB607,13 5Section 13. 867.03 (1g) (intro.) of the statutes is amended to read:
AB607,7,176 867.03 (1g) Generally. (intro.) When Subject to sub. (1p), when a decedent
7leaves property subject to administration in this state which that does not exceed
8$50,000 in gross value, any heir of the decedent, trustee of a revocable trust created
9by the decedent, or person who was guardian of the decedent at the time of the
10decedent's death may collect any money due the decedent, receive the property of the
11decedent, and have any evidence of interest, obligation to, or right of the decedent
12transferred to the affiant if the heir, trustee, or guardian provides to the person owing
13the money, having custody of the property, or acting as registrar or transfer agent of
14the evidences of interest, obligation to, or right, or, if the property is an interest in
15or lien on real property, provides to the register of deeds preliminary to the recording
16required under sub. (2m),
proof of prior mailed notice under sub. (1m) if applicable
17and an affidavit in duplicate showing all of the following:
AB607,14 18Section 14. 867.03 (1p) of the statutes is created to read:
AB607,8,319 867.03 (1p) Real property; notice. If the affidavit under sub. (1g) describes
20an interest in or lien on real property, at least 30 days before submitting the affidavit
21to an office of register of deeds under sub. (2m), the heir, trustee, or person who was
22a guardian of the decedent at the time of the decedent's death shall provide to the
23decedent's heirs a copy of the affidavit under sub. (1g) and notice that the heir,
24trustee, or person who was a guardian intends to record the affidavit under sub. (1g)
25in the office of the register of deeds in each county in this state in which the real

1property is located. The heir, trustee, or person who was a guardian of the decedent
2at the time of the decedent's death shall give the notice required under this
3paragraph by 1st class mail or by personal service.
AB607,15 4Section 15. 867.03 (2m) (a) of the statutes is renumbered 867.03 (2m) (a)
5(intro.) and amended to read:
AB607,8,116 867.03 (2m) (a) (intro.) If an affidavit under sub. (1g) describes an interest in
7or lien on real property a certified copy or duplicate original of the affidavit shall be
8recorded
, the heir, trustee, or person who was a guardian of the decedent at the time
9of the decedent's death shall submit for recording
in the office of the register of deeds
10in each county in this state in which the real property is located . a certified copy or
11duplicate original of the affidavit under sub. (1g) with all of the following attached:
AB607,16 12Section 16. 867.03 (2m) (a) 1. and 2. of the statutes are created to read:
AB607,8,1513 867.03 (2m) (a) 1. Proof of providing notice under sub. (1p), as described in s.
14879.07 (1) or (2), at least 30 days before submitting the affidavit under sub. (1g) to
15the office of the register of deeds.
AB607,8,1616 2. Proof of prior mailed notice under sub. (1m), if applicable.
AB607,17 17Section 17. 867.03 (2m) (c) of the statutes is created to read:
AB607,8,2318 867.03 (2m) (c) If an interest in real property transferred under this section is
19acquired by a purchaser or lender in good faith, for value and without actual notice
20that the transfer was improper, the purchaser or lender takes title free of any claims
21of the decedent's estate and incurs no personal liability to the estate, whether or not
22the transfer was proper. Purchasers and lenders have no duty to inquire whether
23a transfer was proper.
AB607,8,2424 (End)
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