AB371,10,2219 (b) Subject to par. (c) 1., a secured creditor that sends a payoff statement
20containing an understated payoff amount may not deny the accuracy of the payoff
21amount as against any person that reasonably and detrimentally relies upon the
22understated payoff amount.
AB371,10,2323 (c) This section does not do any of the following:
AB371,10,2524 1. Affect the right of a secured creditor to recover any sum that it did not include
25in a payoff amount from any person liable for payment of the secured obligation.
AB371,11,2
12. Limit any claim or defense that a person liable for payment of a secured
2obligation may have under law other than this section.
AB371,11,14 3(5) Secured creditor to submit satisfaction for recording; liability for
4failure.
(a) A secured creditor shall submit for recording a satisfaction of a security
5instrument within 30 days after the secured creditor receives full payment or
6performance of the secured obligation or payment as provided in a payoff statement
7under sub. (3) or a corrected payoff statement under sub. (4), whichever is applicable.
8If a security instrument secures a line of credit or future advances, the secured
9obligation is fully performed only if, in addition to full payment or performance of the
10secured obligation or payment as provided in a payoff statement under sub. (3) or a
11corrected payoff statement under sub. (4), the secured creditor has received a
12notification requesting the secured creditor to terminate the line of credit or
13containing a statement sufficient to terminate the effectiveness of the provision for
14future advances in the security instrument.
AB371,11,1915 (b) Except as otherwise provided in sub. (7), a secured creditor that is required
16to submit a satisfaction of a security instrument for recording and that does not do
17so by the end of the period specified in par. (a) is liable to the landowner for $500, plus
18any actual damages caused by the failure, but not punitive damages, and any
19reasonable attorney fees and court costs incurred.
AB371,12,220 (c) Paragraph (b) applies to a secured creditor that receives full payment or
21performance of the secured obligation or payment as provided in a payoff statement
22under sub. (3) or a corrected payoff statement under sub. (4) on or after the effective
23date of this paragraph .... [LRB inserts date]. Section 706.05 (9) and (10), 2011 stats.,
24applies to a secured creditor that received partial or full payment or performance of

1the secured obligation before the effective date of this paragraph .... [LRB inserts
2date].
AB371,12,4 3(6) Form and effect of satisfaction. A document is a satisfaction of a security
4instrument if it satisfies s. 706.05 (8).
AB371,12,6 5(7) Limitation of secured creditor's liability. A secured creditor is not liable
6under this section if all of the following apply:
AB371,12,87 (a) The secured creditor established a reasonable procedure to achieve
8compliance with its obligations under this section.
AB371,12,99 (b) The secured creditor complied with that procedure in good faith.
AB371,12,1110 (c) The secured creditor was unable to comply with its obligations because of
11circumstances beyond its control.
AB371,12,16 12(8) Satisfaction agent; notification to creditor of affidavit of satisfaction.
13(a) Only a title insurance company, acting directly or through an authorized agent,
14may serve as a satisfaction agent under this section. An affidavit of satisfaction
15under this section is valid only for security instruments recorded against residential
16real property.
AB371,12,2217 (b) Upon, or at any time after, full payment or performance of the secured
18obligation or payment as provided in a payoff statement under sub. (3) or a corrected
19payoff statement under sub. (4), a satisfaction agent acting for and with authority
20from the landowner may give the secured creditor a notification that the satisfaction
21agent may submit for recording an affidavit of satisfaction of the security instrument
22against residential real property. The notification must include all of the following:
AB371,12,2323 1. The identity and mailing address of the satisfaction agent.
AB371,12,2524 2. Identification of the security instrument for which a recorded satisfaction is
25sought, including the names of the original parties to the security instrument.
AB371,13,2
13. A statement that the satisfaction agent has reasonable grounds to believe
2all of the following:
AB371,13,43 a. That the real property described in the security instrument is residential
4real property.
AB371,13,65 b. That the person to which the notification is being given is the secured
6creditor.
AB371,13,97 c. That the secured creditor has received full payment or performance of the
8secured obligation or payment as provided in a payoff statement under sub. (3) or a
9corrected payoff statement under sub. (4).
AB371,13,1210 4. A statement that the satisfaction agent may sign and submit for recording
11an affidavit of satisfaction of the security instrument unless, within 30 days after the
12effective date of the notification, any of the following occurs:
AB371,13,1413 a. The secured creditor submits a satisfaction of the security instrument for
14recording.
AB371,13,2115 b. The satisfaction agent receives from the secured creditor a notification
16stating that the secured obligation remains unsatisfied, except that the satisfaction
17agent may submit for recording an affidavit of satisfaction even if the satisfaction
18agent receives a notification that the secured obligation remains unsatisfied if the
19satisfaction agent has reasonable grounds to believe that the person who paid the
20payoff amount reasonably and detrimentally relied upon an understated payoff
21amount.
AB371,13,2422 c. The satisfaction agent receives from the secured creditor a notification
23stating that the secured creditor has assigned the security instrument and
24identifying the name and address of the assignee.
AB371,14,5
1(c) 1. A notification under par. (b) may be sent by a method authorized by and
2to the address specified in sub. (2); alternatively, a notification under par. (b) may be
3sent by a method authorized in sub. (2) to the electronic or other address provided
4by the secured creditor on a payoff statement under sub. (3) (d) 3., if different from
5the address specified in sub. (2).
AB371,14,76 2. A notification under par. (b) may be sent along with a notification, if any, to
7terminate a line of credit or future advances as provided in sub. (5) (a).
AB371,14,128 (d) The satisfaction agent is presumed to be acting for, and with authority from,
9the entitled person if the satisfaction agent, directly or through an agent, assisted
10in completing full payment or performance of the secured obligation or payment as
11provided in a payoff statement under sub. (3) or a corrected payoff statement under
12sub. (4).
AB371,14,1413 (e) Nothing in this section requires a person to agree to serve as a satisfaction
14agent.
AB371,14,18 15(9) Authorization to submit affidavit of satisfaction for recording; fees. (a)
16Subject to pars. (am), (b), and (c), a satisfaction agent may sign and submit for
17recording an affidavit of satisfaction of a security instrument against residential real
18property that complies with sub. (10) if either of the following applies:
AB371,14,2119 1. The secured creditor has not, to the knowledge of the satisfaction agent,
20submitted for recording a satisfaction of a security instrument within 30 days after
21the effective date of a notification complying with sub. (8) (b).
AB371,14,2222 2. The secured creditor authorizes the satisfaction agent to do so.
AB371,15,223 (am) An affidavit of satisfaction is signed by the satisfaction agent only if it is
24signed by 2 persons who are employees of, and who have been authorized by, the title

1insurance company to sign an affidavit of satisfaction on behalf of the title insurance
2company acting as satisfaction agent.
AB371,15,83 (b) A satisfaction agent may not sign and submit for recording an affidavit of
4satisfaction of a security instrument if it has received a notification under sub. (8)
5(b) 4. b. stating that the secured obligation remains unsatisfied, unless the
6satisfaction agent has reasonable grounds to believe that the person who paid the
7payoff amount reasonably and detrimentally relied upon an understated payoff
8amount.
AB371,15,129 (c) If a satisfaction agent receives a notification under sub. (8) (b) 4. c. stating
10that the security instrument has been assigned, the satisfaction agent may not
11submit for recording an affidavit of satisfaction of the security instrument without
12doing both of the following:
AB371,15,1413 1. Giving a notification of intent to submit for recording an affidavit of
14satisfaction to the identified assignee at the identified address.
AB371,15,1515 2. Complying with sub. (8) with respect to the identified assignee.
AB371,15,2016 (d) A satisfaction agent may submit for recording an affidavit of satisfaction
17that complies with this section even if full payment or performance of the secured
18obligation or payment as provided in a payoff statement under sub. (3) or a corrected
19payoff statement under sub. (4) was made before the effective date of this paragraph
20.... [LRB inserts date].
AB371,15,2421 (e) The satisfaction agent may charge a reasonable, one-time fee per real
22property transaction for sending the notification under sub. (8) and preparing and
23executing the affidavit of satisfaction. A fee charged by a satisfaction agent under
24this paragraph that does not exceed $75 is conclusively presumed to be reasonable.
AB371,16,2
1(10) Content of affidavit of satisfaction. An affidavit of satisfaction of a
2security instrument against residential real property must do all of the following:
AB371,16,63 (a) Identify the original parties to the security instrument, the secured creditor,
4the recording data for the security instrument, and, if necessary for proper indexing
5of the affidavit, a legal description of the real property identified in the security
6instrument.
AB371,16,87 (b) State the basis upon which the entity on whose behalf the affidavit is signed
8is a satisfaction agent.
AB371,16,119 (c) State that the persons signing the affidavit have reasonable grounds to
10believe that the real property described in the security instrument is residential real
11property.
AB371,16,1312 (d) State that the persons signing the affidavit have reasonable grounds to
13believe that the secured creditor has received either of the following:
AB371,16,1414 1. Full payment or performance of the secured obligation.
AB371,16,1615 2. Payment as provided in a payoff statement under sub. (3) or a corrected
16payoff statement under sub. (4).
AB371,16,2017 (e) State that the entity on whose behalf the affidavit is signed, acting with the
18authority of the owner of the real property described in the security instrument, gave
19notification to the secured creditor of its authorization to sign and submit for
20recording an affidavit of satisfaction.
AB371,16,2121 (f) State either of the following:
AB371,16,2322 1. That the secured creditor authorized the entity on whose behalf the affidavit
23is signed to sign and record an affidavit of satisfaction.
AB371,17,224 2. That more than 30 days have elapsed since the effective date of the
25notification, and the persons signing the affidavit have no knowledge that the

1secured creditor has submitted a satisfaction of the security instrument for recording
2and either of the following apply:
AB371,17,43 a. The persons signing the affidavit have not received a notification that the
4secured obligation remains unsatisfied.
AB371,17,85 b. The persons signing the affidavit have received a notification that the
6secured obligation remains unsatisfied, but the persons signing the affidavit have
7reasonable grounds to believe that the person who paid the payoff amount
8reasonably and detrimentally relied upon an understated payoff amount.
AB371,17,109 (g) Be signed by the satisfaction agent, as provided in par. (am), and contain
10a form of authentication authorized by s. 706.06 or 706.07.
AB371,17,15 11(11) Effect of affidavit of satisfaction. (a) An affidavit of satisfaction of a
12security instrument against residential real property that complies with the
13requirements of sub. (10) shall be entitled to record in accordance with s. 706.05 in
14the office of the register of deeds of the county in which the security instrument is
15recorded.
AB371,17,1816 (b) Upon recording, an affidavit substantially complying with the
17requirements of sub. (10) constitutes a satisfaction of the security instrument
18described in the affidavit.
AB371,17,2119 (c) The recording of an affidavit of satisfaction of a security instrument does not
20by itself extinguish any liability of a person for payment or performance of the
21secured obligation.
AB371,17,24 22(12) Liability of satisfaction agent. (a) A satisfaction agent that records an
23affidavit of satisfaction of a security instrument erroneously is not liable to the
24secured creditor if the satisfaction agent properly complied with this section.
AB371,18,5
1(b) A satisfaction agent that records an affidavit of satisfaction of a security
2instrument with knowledge that the statements contained in the affidavit are false
3is liable to the secured creditor for any actual damages caused by the recording and
4reasonable attorney fees and costs. Nothing in this paragraph precludes any of the
5following:
AB371,18,66 1. A court from awarding punitive damages on account of the conduct.
AB371,18,87 2. The secured creditor from proceeding against the satisfaction agent under
8the law of this state other than this section.
AB371,18,99 3. The enforcement of any criminal statute prohibiting the conduct.
AB371,18,14 10(13) Document of rescission: effect; liability for wrongful recording. (a)
11In this subsection, "document of rescission" means a document stating that an
12identified satisfaction or affidavit of satisfaction of a security instrument was
13recorded erroneously, the secured obligation remains unsatisfied, and the security
14instrument remains in force.
AB371,18,1815 (b) If a person records a satisfaction or affidavit of satisfaction of a security
16instrument in error, the person may execute and record a document of rescission.
17Upon recording, the document rescinds an erroneously recorded satisfaction or
18affidavit.
AB371,18,2019 (c) A recorded document of rescission has no effect on the rights of any of the
20following persons:
AB371,18,2321 1. A person that acquired an interest in the real property described in a security
22instrument after the recording of the satisfaction or affidavit of satisfaction of the
23security instrument and before the recording of the document of rescission.
AB371,18,2524 2. A person that would otherwise have priority over or take free of the lien
25created by the security instrument.
AB371,19,3
1(d) A person that erroneously or wrongfully records a document of rescission
2is liable to any person injured thereby for the actual damages caused by the recording
3and reasonable attorney fees and costs.
AB371,19,5 4(14) Right of action not affected. Nothing in this section affects a person's
5right to bring an action under s. 847.09.
AB371,6 6Section 6. Initial applicability.
AB371,19,87 (1) Notification. The treatment of section 708.15 (2) of the statutes first
8applies to notifications given on the effective date of this subsection.
AB371,19,119 (2) Payoff statement. The treatment of section 708.15 (3) and (4) of the statutes
10first applies to notifications requesting payoff statements, and payoff statements
11that are requested, on the effective date of this subsection.
AB371,19,1212 (3) Affidavit of satisfaction.
AB371,19,1513 (a) The treatment of section 708.15 (8) of the statutes first applies to
14notifications regarding affidavits of satisfaction that are given on the effective date
15of this paragraph.
AB371,19,1816 (b) The treatment of section 708.15 (9), (10), (11), and (12) of the statutes first
17applies to affidavits of satisfaction that are recorded on the effective date of this
18paragraph.
AB371,19,2119 (4) Document of rescission. The treatment of section 708.15 (13) of the
20statutes first applies to documents of rescission that are recorded on the effective
21date of this subsection.
AB371,19,2222 (End)
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