As the legislative session wraps up in March, the following information provides a quick update on the WRA’s remaining legislative agenda. Note that the status for the bills listed below was current as this article went to press. For more information, visit action.wra.org.  

Resolve title issues on land formerly lake bed/riverway 

• SB 541/AB 579
• WRA position: Support

Legislative authors

• Sen. Stroebel (R – Saukville)
• Rep. Wittke (R – Racine)

Overview of legislation

This legislation stipulates that a municipality needs to develop a waterfront development plan, which must include all of the following:

• A boundary between a public use area and remaining to be used for private use.
• A description of the areas and types of public use as well as how the public use area is accessible.
• A plan for implementing and enforcing the plan. 

Additionally, this legislation allows the Wisconsin Department of Natural Resources (DNR) to review and approve waterfront development plans based upon:

• Whether the plan is consistent with the required elements.
• And whether the public use and implementation plan is sufficient.

Status

This bill is waiting for Gov. Evers’ signature.

Real estate practice

• SB 870/AB 918
• WRA position: Support

Legislative authors

• Sen. Jagler (R – Watertown)
• Rep. Krug (R – Nekoosa)

Overview of legislation

This legislation makes a number of changes to improve consumer transparency, raise the bar on professionalism and address licensee liability:

• Creates a safe harbor for licensees when using government information if attribution to the source is provided.
• Requires specific disclosures to consumers in contracts when contractual rights are being assigned to another. 
• Raises the fines and forfeitures for which the Real Estate Examining Board can charge from $1,000 to $5,000 for the most egregious violations of license law.  

Status

This bill is ready for a Senate committee vote and Assembly floor.

Discriminatory covenants and deed restrictions  

• SB 439/AB 444
• WRA position: Support

Legislative authors

• Sen. Ballweg (R – Markesan) 
• Sen. Johnson (D – Milwaukee)
• Rep. Novak (R – Dodgeville)
• Rep. Haywood (D – Milwaukee)

Overview of legislation

This legislation allows a Wisconsin property owner to address offensive, discriminatory covenants based on race and other protected classes that appear in deeds and subdivision restrictions and covenants on their land:  

• Creates a voluntary process to record a statutorily created form. 
• The process is only for the property owner.
• Does not delete the language from title. 

Status

This bill is waiting for Gov. Evers’ signature.

Sales tax exemption for multiple listing services  

• SB 351/AB 353
• WRA position: Support

Legislative authors

• Sen. Steffen (R – Green Bay)
• Rep. Bradley (R – Franklin)

Overview of legislation

This legislation creates a statutory clarification as to a sales tax exemption for the sale of certain Multiple Listing Service (MLS) services.

• MLSs facilitate cooperation and compensation among participating real estate brokers.
• The Wisconsin Department of Revenue (DOR) is not currently charging sales tax for the sale of the MLS service
• The DOR is supportive of the statutory clarification provided in the legislation.

Status

This bill is waiting for Gov. Evers’ signature.

Foreclosure equity theft loophole

• SB 918/AB 969
• WRA position: Support

Legislative authors

• Sen. Stafsholt (R – New Richmond) 
• Rep. Penterman (R – Columbus) 

Overview of legislation

2021 Wis. Act 216 provided that if a county or the city of Milwaukee foreclosed upon a property for the owner’s failure to pay property taxes and the municipality subsequently sells the property, any remaining net proceeds must be returned to the property owner. Wisconsin’s law has a remaining loophole: 

• Under the loophole, counties as well as the city of Milwaukee can foreclose upon the property and keep the property, even if that property’s value is greater than the property taxes owed.
• Requires the sale of the property. 

Status

This bill is ready for a Senate committee vote and Assembly floor.

Transfer tax reduction  

• SB 274/AB 277
• WRA position: Support

Legislative authors

• Sen. Stafsholt (R – New Richmond) 
•  Rep. Green (R – Grand View)

Overview of legislation

This legislation proposes to cut Wisconsin’s real estate transfer tax by one third, reducing the cost carried by Wisconsin property owners who pay the tax on the sale of real property. 

Status

This bill received a Senate floor vote on February 13, 2024, and is ready for the Assembly floor. 

Advertising for sale by owner real property

• SB 394/AB 407
• WRA position: Oppose

Legislative authors

• Sen. Stroebel (R – Saukville) 
• Rep. Armstrong (R – Rice Lake)

Overview of legislation

Current Wisconsin law allows licensees, including licensed real estate platforms, to advertise For Sale By Owner (FSBO) properties.

• A real estate license requires compliance with Wisconsin law. 
• To advertise a Wisconsin property, including a FSBO, a licensee must: 
  • Walk through the property to verify information and condition.
  • Enter into a written agreement identifying the services provided by the listing firm.
• This bill removes the property walk-through, which is an important consumer protection.
• Wisconsin licensees have a limited capacity to practice law. This right is carefully balanced with established consumer protection laws.
• Wisconsin is the only state that requires licensees to use state-approved forms and conduct a walk-through. 

Status

This bill was heard by the Senate Committee on Government Operations.