AB1100: Bill Text

AB1100,6,2 (c) A recorded document of rescission has no effect on the rights of any of the following:

AB1100,6,5 1. A person that acquired an interest in the real property described in a security instrument after the recording of the satisfaction or affidavit of satisfaction of the security instrument and before the recording of the document of rescission.

AB1100,6,7 2. A person that would otherwise have priority over or take free of the lien created by the security instrument under this chapter.

AB1100,6,10 (d) A person that erroneously or wrongfully records a document of rescission is liable to any person injured thereby for the actual damages caused by the recording and reasonable attorney's fees and costs.

AB1100,6,15 (4) Payoff statement; request and content. (a) An entitled person, or an agent authorized by an entitled person to request a payoff statement, may give to the secured creditor a notification requesting a payoff statement for a specified payoff date not more than 30 days after the notification is given. The notification must contain all of the following:

AB1100,6,16 1. The entitled person's name.

AB1100,6,19 2. If given by a person other than an entitled person, the name of the person giving the notification and a statement that the person is an authorized agent of the entitled person.

AB1100,6,21 3. A direction whether the statement is to be sent to the entitled person or that person's authorized agent.

AB1100,6,22 4. The address to which the creditor must send the statement.

AB1100,6,24 5. Sufficient information to enable the creditor to identify the secured obligation and the real property encumbered by the security interest.

AB1100,7,4 (b) If a notification under par. (a) directs the secured creditor to send the payoff statement to a person identified as an authorized agent of the entitled person, the secured creditor shall send the statement to the agent, unless the secured creditor knows that the entitled person has not authorized the request.

AB1100,7,13 (c) Within 10 days after the effective date of a notification that complies with par. (a), the secured creditor shall issue a payoff statement and send it as directed under sub. (2) (a). A secured creditor that sends a payoff statement to the entitled person or the authorized agent may not claim that the notification did not satisfy par. (a). If the person to whom the notification is given once held an interest in the secured obligation but has since assigned that interest, the person need not send a payoff statement but shall give a notification of the assignment to the person to whom the payoff statement otherwise would have been sent, providing the name and address of the assignee.

AB1100,7,14 (d) A payoff statement must contain all of the following:

AB1100,7,17 1. The date on which it was prepared and the payoff amount as of that date, including the amount by type of each fee, charge, or other sum included within the payoff amount.

AB1100,7,19 2. The information reasonably necessary to calculate the payoff amount as of the requested payoff date, including the per diem interest amount.

AB1100,7,21 3. The payment cutoff time, if any, the address or place where payment must be made, and any limitation as to the authorized method of payment.

AB1100,7,23 (e) A payoff statement may contain the amount of any fees authorized under this section not included in the payoff amount.

AB1100,8,4 (f) A secured creditor may not qualify a payoff amount or state that it is subject to change before the payoff date unless the payoff statement provides information sufficient to permit the entitled person or the person's authorized agent to request an updated payoff amount at no charge and to obtain that updated payoff amount during the secured creditor's normal business hours on the payoff date or the immediately preceding business day.

AB1100,8,9 (g) A secured creditor must provide upon request one payoff statement without charge during any 6-month period. A secured creditor may charge a fee not more than $25 for each additional payoff statement requested during that 6-month period. However, a secured creditor may not charge a fee for providing an updated payoff amount under par. (f) or a corrected payoff statement under sub. (5) (a).

AB1100,8,13 (h) Unless the security instrument provides otherwise, a secured creditor is not required to send a payoff statement by means other than 1st class mail. If the creditor agrees to send a statement by another means, it may charge a reasonable fee for complying with the requested manner of delivery.

AB1100,8,20 (i) Except as otherwise provided in sub. (8), if a secured creditor to which a notification has been given pursuant to par. (a) does not send a timely payoff statement that substantially complies with par. (d), the creditor is liable to the entitled person for any actual damages caused by the failure plus $500, but not punitive damages. A creditor that does not pay the damages provided in this subsection within 30 days after receipt of a notification demanding payment may also be liable for reasonable attorney's fees and costs.

AB1100,9,2 (5) Understated payoff statement; correction; effect. (a) If a secured creditor determines that the payoff amount it provided in a payoff statement was understated, the creditor may send a corrected payoff statement. If the entitled person or the person's authorized agent receives and has a reasonable opportunity to act upon a corrected payoff statement before making payment, the corrected statement supersedes an earlier statement.

AB1100,9,5 (b) A secured creditor that sends a payoff statement containing an understated payoff amount may not deny the accuracy of the payoff amount as against any person that reasonably and detrimentally relies upon the understated payoff amount.

AB1100,9,9 (c) This section does not affect the right of a secured creditor to recover any sum that it did not include in a payoff amount from any person liable for payment of the secured obligation or limit any claim or defense that a person liable for payment of a secured obligation may have under law other than this section.

AB1100,9,17 (6) Secured creditor to submit satisfaction for recording; liability for failure. (a) A secured creditor shall submit for recording a satisfaction of a security instrument within 30 days after the creditor receives full payment or performance of the secured obligation. If a security instrument secures a line of credit or future advances, the secured obligation is fully performed only if, in addition to full payment, the secured creditor has received a notification requesting the creditor to terminate the line of credit or containing a statement sufficient to terminate the effectiveness of the provision for future advances in the security instrument.

AB1100,9,21 (b) Except as otherwise provided in sub. (8), a secured creditor that is required to submit a satisfaction of a security instrument for recording and does not do so by the end of the period specified in par. (a) is liable to the landowner for any actual damages caused by the failure, but not punitive damages.

AB1100,9,25 (c) Except as otherwise provided in par. (d) and in sub. (8), a secured creditor that is required to submit a satisfaction of a security instrument for recording and does not do so by the end of the period specified in par. (a) is also liable to the landowner for $500 and any reasonable attorney's fees and court costs incurred if, after the expiration of the period specified in par. (a), the landowner gives the creditor a notification, by any method authorized under sub. (2) that provides proof of receipt, demanding that the creditor submit a satisfaction for recording and the creditor does not submit a satisfaction for recording within 30 days after receipt of the notification.

AB1100,10,7 (d) Paragraph (c) does not apply if the secured creditor received full payment or performance of the secured obligation before the effective date of this section .... [revisor inserts date].

AB1100,10,9 (7) Form and effect of satisfaction. (a) A document is a satisfaction of a security instrument if all of the following are true:

AB1100,10,12 1. It identifies the security instrument, the original parties to the security instrument, the recording data for the security instrument, and the office in which the security instrument is recorded.

AB1100,10,13 2. It states that the person signing the satisfaction is the secured creditor.

AB1100,10,16 3. It contains a legal description of the real property identified in the security instrument, but only if a legal description is necessary for a satisfaction to be properly indexed.

AB1100,10,18 4. It contains language terminating the effectiveness of the security instrument.

AB1100,10,20 5. It is signed by the secured creditor and authenticated as required by s. 706.06 or 706.07 for a conveyance of an interest in real property.

AB1100,11,2 (b) The appropriate office of the register of deeds shall accept for recording a satisfaction of a security instrument, unless an amount equal to or greater than the applicable recording fees and taxes is not tendered, the document is submitted by a method or in a medium not authorized by the office of the register of deeds or this chapter, or the document is not signed by the secured creditor and acknowledged as required under this chapter for a conveyance of an interest in real property.

AB1100,11,7 (8) Limitation of secured creditor's liability. A secured creditor is not liable under this section if it has established a reasonable procedure to achieve compliance with its obligations under this section, has complied with that procedure in good faith, and was unable to comply with its obligations because of circumstances beyond its control.

AB1100,11,13 (9) Affidavit of satisfaction; notification to secured creditor. (a) If a secured creditor has not submitted for recording a satisfaction of a security instrument within the period specified in sub. (6) (a), a satisfaction agent acting for and with authority from the landowner may give the secured creditor a notification that the satisfaction agent intends to submit for recording an affidavit of satisfaction of the security instrument. The notification shall include all of the following:

AB1100,11,14 1. The identity and mailing address of the satisfaction agent.

AB1100,11,17 2. Identification of the security instrument for which a recorded satisfaction is sought, including the names of the original parties to, and the recording data for, the security instrument.

AB1100,11,22 3. A statement that the satisfaction agent has reasonable grounds to believe that the real property described in the security instrument is residential real property, the person to which the notification is being given is the secured creditor, and the secured creditor has received full payment or performance of the secured obligation.

AB1100,11,24 4. A statement that a satisfaction of the security instrument does not appear of record.

AB1100,12,9 5. A statement that the satisfaction agent, acting with the authorization of the owner of the real property described in the security instrument, intends to sign and submit for recording an affidavit of satisfaction of the security instrument unless, within 30 days after the effective date of the notification the secured creditor submits a satisfaction of the security instrument for recording, the satisfaction agent receives from the secured creditor a notification stating that the secured obligation remains unsatisfied, or the satisfaction agent receives from the secured creditor a notification stating that the secured creditor has assigned the security instrument and identifying the name and address of the assignee.

AB1100,12,14 (b) A notification under par. (a) shall be sent by a method authorized by sub. (2) that provides proof of receipt to the secured creditor's address for giving a notification for the purpose of requesting a payoff statement or, if the satisfaction agent cannot ascertain that address, to the secured creditor's address for notification for any other purpose.

AB1100,12,16 (c) This section does not require a person to agree to serve as a satisfaction agent.

AB1100,12,23 (10) Affidavit of satisfaction; authorization to submit for recording. (a) Subject to pars. (b) and (c), a satisfaction agent may sign and submit for recording an affidavit of satisfaction of a security instrument complying with sub. (10) if the secured creditor has not, to the knowledge of the satisfaction agent, submitted for recording a satisfaction of a security instrument within 30 days after the effective date of a notification complying with sub. (9) (a) or the secured creditor authorizes the satisfaction agent to do so.

AB1100,13,3 (b) A satisfaction agent may not sign and submit for recording an affidavit of satisfaction of a security instrument if it has received a notification under sub. (9) (a) 5. stating that the secured obligation remains unsatisfied.

AB1100,13,9 (c) If a satisfaction agent receives a notification under sub. (9) (a) 5. stating that the security instrument has been assigned, the satisfaction agent may not submit for recording an affidavit of satisfaction of the security instrument without giving a notification of intent to submit for recording an affidavit of satisfaction to the identified assignee at the identified address and complying with sub. (9) with respect to the identified assignee.

AB1100,13,11 (11) Affidavit of satisfaction; content. An affidavit of satisfaction of a security instrument shall do all of the following:

AB1100,13,15 (a) Identify the original parties to the security instrument, the secured creditor, the recording data for the security instrument, and, if necessary for proper indexing of the affidavit, a legal description of the real property identified in the security instrument.

AB1100,13,17 (b) State the basis upon which the person signing the affidavit is a satisfaction agent.

AB1100,13,20 (c) State that the person signing the affidavit has reasonable grounds to believe that the real property described in the security instrument is residential real property.

AB1100,13,23 (d) State that the person signing the affidavit has reasonable grounds to believe that the secured creditor has received full payment or performance of the secured obligation.

AB1100,14,2 (e) State that the person signing the affidavit, acting with the authority of the owner of the real property described in the security instrument, gave notification to the secured creditor of its intention to sign and submit for recording an affidavit of satisfaction.

AB1100,14,4 (f) Describe the method by which the person signing the affidavit gave notification in compliance with this section.

AB1100,14,9 (g) State that more than 30 days have elapsed since the effective date of that notification, and the person signing the affidavit has no knowledge that the secured creditor has submitted a satisfaction for recording and has not received a notification that the secured obligation remains unsatisfied, or the secured creditor authorized the person signing the affidavit to sign and record an affidavit of satisfaction.

AB1100,14,11 (h) Be signed and acknowledged as required by law for a conveyance of an interest in real property.

AB1100,14,14 (12) Affidavit of satisfaction; form. No particular phrasing of an affidavit of satisfaction is required. The following form of affidavit, when properly completed, is sufficient to satisfy the requirements of sub. (11):

AB1100,14,15 ....

AB1100,14,16 (Date of Affidavit)

AB1100,14,17 Affidavit of Satisfaction

AB1100,14,18 The undersigned hereby states as follows:

AB1100,14,19 1. I am: [check appropriate box]

AB1100,14,24 ⍽  an officer or a duly appointed agent of .... [Name of title insurance company] (the "Company"), which is authorized to transact the business of insuring titles to interests in real property in this state, and I have been authorized by the Company to sign and submit for recording an affidavit of satisfaction.

AB1100,14,25 ⍽  an attorney licensed to practice law in this state and in good standing.

AB1100,15,4 2. I am signing this Affidavit of Satisfaction to evidence full payment or performance of the obligations secured by real property covered by the following security instrument (the "security instrument") currently held by .... (the "secured creditor"):

AB1100,15,5 Title of security instrument:

AB1100,15,6 Original parties to security instrument:

AB1100,15,7 County and state of recording:

AB1100,15,8 Recording data for security instrument:

AB1100,15,9 [Legal description, if necessary for proper indexing:]

AB1100,15,10 3. I have reasonable grounds to believe that:

AB1100,15,12 a. the secured creditor has received full payment or performance of the balance of the obligations secured by the security instrument; and

AB1100,15,14 b. the real property described in the security instrument constitutes residential real property.

AB1100,15,21 4. With the authorization of the owner of the real property described in the security instrument, I gave notification to the secured creditor by .... [method authorized by section 706.054 (2) of the Wisconsin Statutes that provides proof of receipt] that I would sign and record an affidavit of satisfaction of the security instrument if, within 30 days after the effective date of the notification, the secured creditor did not submit a satisfaction of the security interest for recording or give notification that the secured obligation remains unsatisfied.

AB1100,15,22 5. [check appropriate box]

AB1100,16,2 ⍽  The 30-day period identified in paragraph 4. has elapsed, I have no knowledge that the secured creditor has submitted a satisfaction for recording, and I have not received notification that the secured obligation remains unsatisfied.

AB1100,16,4 ⍽  The secured creditor responded to the notification in paragraph 4. by authorizing me to execute and record this affidavit of satisfaction.

AB1100,16,5 ....

AB1100,16,6 (Signature of Satisfaction Agent)

AB1100,16,7 ....

AB1100,16,8 (Notarization)

AB1100,16,11 (13) Affidavit of satisfaction; effect. (a) Upon recording, an affidavit substantially complying with the requirements of sub. (11) constitutes a satisfaction of the security instrument described in the affidavit.

AB1100,16,14 (b) The recording of an affidavit of satisfaction of a security instrument does not by itself extinguish any liability of a person for payment or performance of the secured obligation.

AB1100,16,17 (c) The appropriate office of the register of deeds may not refuse to accept for recording an affidavit of satisfaction of a security instrument unless any of the following are true:

AB1100,16,19 1. An amount equal to or greater than the applicable recording fees and taxes is not tendered.

AB1100,16,21 2. The affidavit is submitted by a method or in a medium not authorized by the office of the register of deeds.

AB1100,16,23 3. The affidavit is not signed by the satisfaction agent and acknowledged as required by law for a conveyance of an interest in real property.

AB1100,17,3 (14) Liability of satisfaction agent. (a) Except as otherwise provided in par. (b), a satisfaction agent that records an affidavit of satisfaction of a security instrument erroneously or with knowledge that the statements contained in the affidavit are false is liable to the secured creditor for any actual damages caused by the recording and reasonable attorney's fees and costs.

AB1100,17,7 (b) A satisfaction agent that records an affidavit of satisfaction of a security instrument erroneously is not liable if the agent properly complied with sub. (9) to (12) and the secured creditor did not respond in a timely manner to the notification pursuant to sub. (9) (a) 5.