Bulletin: WI2010003

Dear Associates:

The Instrument of Correction legislation spearheaded by the Wisconsin Land Title Association was signed by Governor Doyle on Thursday, May 13, as 2009 Wis. Act 349, and will be published on May 27, 2010. According to law, the new Wis. Stats. §706.085 becomes effective on the date following publication, or May 28, 2010.

What Information Contained In or Missing From a Document May be Corrected:

The following information in a recorded document may be corrected, or information missing from a recorded document may be added with a Correction Instrument:

1. The correction of a legal description, including a distance; angle; direction; bearing; chord; lot, block, unit, or building number or letter; appurtenant easement; section number; township name or number; municipality, county, or state name; range number or meridian; certified survey map number; or subdivision or condominium name. See §706.085(1)(a).


2. The addition, correction, or clarification of information other than a legal description, including any of the following information: See §706.085(1)(b).

a. A party's name, including the spelling of the name; a first or middle name or initial; a name suffix (such as senior or junior); alternate names by which the party is known; or a description of an entity as a corporation, company, or similar identifier.


b. A party's marital status.


c. The date on which the conveyance was executed.


d. Whether the property is a homestead.


e. The tax parcel number.


f. The identity of the drafter.


g. The recording data for another instrument referenced in the recorded document.



h. The nature and purpose of the document.



i. The title of the document.



j. Facts relating to the acknowledgment or authentication.

3. The addition of an acknowledgment or authentication. See §706.085(1)(c).

4. The disclaimer by a grantee under a deed of that party's interest in the real property that is the subject of the deed. See §706.085(1)(d).

5. The addition of a mortgagee's consent or subordination. See §706.085(1)(e).

Who may sign correction instruments:

Generally, and subject to the restrictions noted below, a Correction Instrument may be signed by a person having personal knowledge of the circumstances of the conveyance and of the facts recited in the correction instrument. This includes the grantor, the grantee, the person who drafted the document that is the subject of the correction instrument, or the person who acted as the settlement agent in the transaction that is the subject of the conveyance, and shall recite the basis for the person's personal knowledge. See §706.085(2)(b).

Please note that the terms "grantor" and "grantee" are defined in §706.01(6) as follows:

Grantor is defined as: "...the person from whom an interest in lands passes by conveyance, including, without limitation, lessors, vendors, mortgagors, optionors, releasors, assignors and trust settlors of interest in lands...Whenever consistent with the context, reference to the interest of a party includes the interest of the party's heirs, successors, personal representatives and assigns."


Grantee is defined as "...the person to whom the interest in land passes. Whenever consistent with the context, reference to the interest of a party includes the interest of the party's heirs, successors, personal representatives and assigns."

While the statute itself does not define who must sign when the grantor, grantee or settlement agent is not a natural person, as it does not use the term "natural person," we expect that the rules determining who can bind entities or trusts or estates will apply.

When Someone Other than Settlement Agent must sign the Correction Instrument:

1. Any disclaimer by a grantee under a deed of that party's interest in the real property that is the subject of the deed must be signed by the disclaiming grantee. See §706.085(1)(d).

2. Any addition of a mortgagee's consent or subordination to a recorded document must be signed by the consenting mortgagee, or an heir, successor, or assignee of the mortgagee. See §§706.085(1)(e) and 706.085(2)(b)(2).

3. If a parcel of land is being added to a conveyance that also correctly conveys other land, the correction instrument need only be signed by the grantor. See §706.085(2)(b)(3)(b).

4. If a parcel of land is being removed from a conveyance that also correctly conveys other land, the correction instrument need only be signed by the grantee. See §706.085(2)(b)(3)(c).

5. If a lot or unit number or letter is being corrected and the lot or unit incorrectly recited in the conveyance is also owned by the grantor, then the correction instrument need only be signed by the grantee. See §706.085(2)(b)(3)(d).

Notice of the Correction Instrument Must be Sent:

A person who executes and records a correction instrument shall send notice of that fact by 1st class mail to all parties to the transaction that was the subject of the conveyance at their last-known addresses. See §706.085(2)(c).

The fact that notice was sent must either be contained in the Correction Instrument itself, or must be established to the agent's satisfaction by some other means. An agent is not permitted to rely on a Correction Instrument recorded after May 28, 2010 without obtaining evidence that the notice was sent, unless that information is contained within the Correction Instrument itself.

What Effect Does a Properly Recorded Correction Instrument Have:

All of the following apply to the record of a correction instrument that complies with the new law:

The recording of a Correction Instrument will be prima facie evidence of the facts stated in the instrument; is presumed to be true, subject to rebuttal; and constitutes notice to a purchaser under §706.09 of the facts recited in the instrument. The Correction Instrument may be asserted by a purchaser for a valuable consideration against any person making an adverse or inconsistent claim under §706.09 (1) (i).

"Grandfathering" of Correction Instruments Recorded before May 28, 2010 (previously called "Affidavits of Correction"):

Any instrument recorded before May 28, 2010 (the effective date of §706.085), that purports to correct a previously recorded conveyance is entitled to the same effect as a Correction Instrument recorded after that date ONLY IF it meets the requirements of the new statute. See §706.085(4).

What Should A Correction Instrument Look Like?

The statute does not mandate any particular form for the Correction Instrument. Forms suitable for use will be added to Virtual Underwriter's Wisconsin Forms section shortly.

2009 Wisconsin Act - Senate Bill 587 (CLICK TO VIEW)

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