Wisconsin Real Estate Practices

Attorney involvement may be needed to the extent that drafting of documents is treated as the unauthorized practice of law. Wisconsin Statutes Section 757.30.

The statutes are silent on this topic. If this is considered as an insurer charge, it may need to be filed with the State as a rate. Wisconsin Statutes Section 625.13.

In Wisconsin, satisfaction of a mortgage is controlled by Wis. Stat. 708.15. In almost all cases, the secured creditor has the authority to, and will issue the satisfaction of mortgage. In the limited instance where a secured creditor fails to timely issue a satisfaction, Wis. Stat. 708.15(8)-(12) provides a procedure for a “Satisfaction agent” to record an “affidavit of satisfaction”. A recorded affidavit of satisfaction operates as a satisfaction of the underlying security instrument. The affidavit of satisfaction method is limited to residential property, which is defined as property primarily used for personal, family or household purposes and is improved by one to four dwelling units. Additionally, the affidavit of satisfaction may only be recorded after proper notice is given to the secured creditor and all the statutory requirements are followed. Under the statute, a satisfaction agent can only be a title insurance company, acting directly or through an authorized agent. A title insurance company is not required to act as a satisfaction agent, and this method is not commonly used to satisfy mortgages at this time. For additional information please see: http://docs.legis.wisconsin.gov/statutes/statutes/708

General warranty deeds, limited warranty deeds, quit claim deeds are available and used. Insurance will be generally available with these deeds.

Yes, Act 394 Statute 708.10 (9-4-19)

The non-record spouse is required to join in the conveyance (deed or mortgage) of the homestead. Wisconsin Statutes Section 706.02 (1) (f).

Wisconsin does not have a mortgage tax.

(a) Owner’s Policy? —Standard Residential Purchase Agreement calls for Seller to pay.
(b) Transfer Tax & Recording Fee? —Grantor is responsible by statute for the Transfer Tax (Wis. Stat. Sec. 77.22). Recording fee charges will vary depending on what is needed.
(c) Survey Charges? – Negotiable, not a mandated charge.
(d) Closing/Settlement Fees? –-In a sale, both buyer and seller can have their own closing charge.

There are no requirements for who can countersign per statute. Presumably, it would be anyone who is authorized by the Company.

Real estate taxes become a lien on January 1 of the year when taxes are levied. It is common to pay the taxes in two installments (January 31 and July 31). See Chapter 70 of the Wisconsin Statutes.

(A) No mandated state minimums.
(B) Marketable Title Act (Wis. Stat. Sec. 893.33) 40 years for easements and covenants, 30 years for other interests.
(C) There are no title standards in Wisconsin.

Search and exam fees are customary.

Who can be listed as the trustee on the Deed of Trust (e.g., residency and/or natural person requirements, etc.)? Can an underwriter or title agent be designated as the trustee, and, if so, is it customary?

Wisconsin uses a mortgage as its customary form of security instrument.

Standard exceptions:

1.  Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the Commitment Date hereof but prior to the date the proposed Insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment.

2.  Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown by the Public Records.

3.  Liens, hook-up charges or fees, deferred charges, reserve capacity assessments, impact fees, or other charges or fees due and payable on the development or improvement of the Land, whether assessed or charged  before or after the date of the policy. 

4.  Rights or claims of parties in possession not shown by the Public Records. 

5.  Encroachments, overlaps, boundary line disputes, or other matters affecting Title which would be disclosed by an accurate survey or inspection of the Land. 

6.  Easements or claims of easements not shown by the Public Records.

7.  Any claim of adverse possession or prescriptive easement.

8.  Special taxes or assessments, if any, payable with the taxes levied or to be levied for the year____and subsequent years.

9.  General taxes for the year_____and subsequent years. 

The standard mineral exception should not be included in any commitment for an Owner’s policy as our insurance commissioner has issued a memo not permitting a general exclusion for minerals.  It is permitted in a Loan Policy. 

Here is a link to our current bulletin on the matter if needed for reference. 

https://www.vuwriter.com/en/bulletins/2014-8/wi2014003.html

N/A

There is no rating bureau. Form filing is file and use (Wis. Stat. Sec. 631.20 ). Rate filing is use and file (Wis. Stat. Sec. 625.13).

Yes. There is imposed on the grantor of real estate a real estate transfer fee at the rate of 30 cents for each $100 of value or fraction thereof on every conveyance not exempted. This fee is uniform across the state. See Wis. Stat. Sec. 77.22 et seq.

Yes. Usury coverage is not prohibited under Wisconsin law.

Usury coverage is available: (i) if the loan is made to a corporation or limited liability company; (ii) if the interest rate of the loan is 12% or less; or (iii) if the principal indebtedness of a loan exceeds $150,000.00 and is not secured by a 1-4 family dwelling in which the borrower resides (Wis. Statute Sec. 138.05).

There are no state-specific requirements to mandate withholding of sale proceeds by a closing agent.

Witnesses are not required.