All real estate transfer returns (eRETR) must be filed electronically on or after July 1, 2009, according to Wis. Stat 77.22(2). Electronic filing will be mandatory and creates stricter confidentiality standards for real estate transfer returns.

The intended benefits of eRETR include:

• Reduced printing, storage and handing costs of typical paper forms.
• Saved documents that can be used as templates for other real estate transfer returns and templates that streamline preparation time and reduce errors on future returns.
• Reduction of rejected returns and costs to correct and resubmit.
• Increased security because all data is encrypted and protects against identity theft.
• Email alerts for grantors, grantees, preparers and agents upon submittal as a customer service feature.

The new eRETR process will be triggered by the filing date, not the closing date. “Filed” means documents have been received for recording with the Register of Deeds, not the date of the conveyance. If you have a closing prior to July, 1, 2009, and cannot record until or after July 1, you must use the eRETR Receipt. If documents are mailed with a paper PE-500 to the Register of Deeds, they must arrive prior to July 1, 2009; registrars cannot accept the postmark date. For any conveyance occurring prior to July 2009, the paper PE-500 must be received by June 30, 2009, to be recorded.

Regardless of when the deed is dated, the eRETR must be completed if submitted for recording on or after July 1, 2009. If there is a paper PE-500, the new eRETR return may be easily completed because the new return does not require any additional information than an existing return. Additionally, no signatures are required.

Any document received after July 1 with a paper PE-500 without a “Waiver form PE500w” will be returned for completion of a “waiver” or an eRETR Receipt. The Department of Revenue Secretary may waive the requirement to file electronically if it causes an undue hardship. More information regarding the “Waiver Form PE-500w” will be issued by the DOR at a later date but was not available at the time of this publication.

1. Complete eRETR

The new form will be completed online using the eRETR program. The preparer will then submit the information to the county Registrar of Deeds and will see a display containing a summary and receipt page. The summary will show all the information electronically transmitted to the county Registrar of Deeds. Once this is completed, a copy of the receipt is sent to the grantor, grantee and preparer because the system allows email addresses of the grantors, grantees and preparer to be included. The receipt will include the document number, explain how to amend a return, if necessary, and provide an online link to the RETR for viewing in the future.

2. Submit Transaction Documents for Recording

The receipt includes instructions for delivering the receipt, payment and deed (or other conveyance document) to the county Registrar of Deeds. The RETR becomes part of the official record when the Registrar records the deed. The transaction documents must be delivered or mailed to the Registrar of Deeds to be recorded. Once recorded, the eRETR system will email a notice of the recording.

The new online system will help avoid missing data because the system provides feedback about missing or improperly formatted information. It will be impossible to submit an incomplete form. If all information is not available when beginning the form, the preparer may use the save and restore feature until all information is gathered and submitted.

If a mistake is made and a new return must be submitted, changes can be made in the eRETR system by using the restore saved information feature. The changes are made and submitted to the Registrar with the payment and deed. Step-by-step completion information is available at https://ww2.revenue.wi.gov/GenericFile/help/eRetr/detail.htm.

The information provided to the DOR website will be encrypted so that it will be secure when transferred to the DOR. Only authorized DOR employees will be able to access Social Security numbers and federal tax identification numbers.

When filing an eRETR there are new standards for immediate rejection. If any information on the Receipt has been changed in any way, such as being crossed out or whited out, with information inserted or added, the recording will be rejected. Changing information on the Receipt creates an inconsistency with the information on the eRETR. It is acceptable to have signatures or initials written on the Receipt, so long as the data is not changed in any way.

To use the eRETR system, a computer with Internet access and a printer is required. The system is designed to work with most Internet browsers. No additional software is required. 

Wisconsin Contractors Required to Register by July 1 

The Wisconsin Department of Commerce has adopted rules requiring building contractors to register by July 1, 2009. Registration will be required for businesses that provide services that are regulated under DCOMM codes. Examples include, but are not limited to, drywall and plastering, roofing, plumbing, framing carpentry, flooring, general building construction, siding insulation and others. Businesses currently registered with DCOMM with one of the nine business credentials issued by the Safety and Buildings Division will not need the new registration. Persons who own a construction business may refer to the DCOMM website to determine what credentials are required: http://commerce.wi.gov/SB/docs/SB-BuildingContractorDtree.pdf and http://commerce.wi.gov/SB/docs/SB-BuildingContractorNotNeed.pdf.

The registration is intended to help consumers and local and state agencies to better identify businesses that work in construction. It will also enhance DCOMM’s ability to communicate with contractors about codes and safety and health practices as well as business practices relating to taxes, workers compensation insurance and unemployment insurance.

The registration will be needed to engage in building construction work, obtain permits, provide bids or contracts, or work as a subcontractor. Contractors may apply online for the four-year registration: www.commerce.state.wi.us/SB/docs/SB-BuildingContractorAnnoun.pdf.

Tracy Rucka is a Staff Attorney for the WRA.