I Can't Get No Satisfaction - New Statutory Requirements for Payoff Letters and Satisfactions

Sep 15, 2026

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Wisconsin statute Section 708.15 took effect on December 14, 2013 and sets obligations for secured creditors in real estate transactions, focusing here on commercial real estate. The update explains who qualifies as an “entitled person,” what payoff statements must include, when they must be provided, applicable delivery timing, permissible fees, and restrictions on changing payoff amounts. It also covers mortgage satisfaction recording timelines, definition of “satisfaction,” and liability for noncompliance, including potential damages.

LanguageEnglish

CategoryLetters

FormatPDF

Pages3

Reading Time1 min

AccessFree to download

Overview

Who Qualifies as an “Entitled Person”

Payoff Letters

Delivery and Timing Rules

Required Contents of Payoff Statements

Restrictions on Payoff Amount Changes

Corrected Payoff Statements and Reliance

Treatment of Unliquidated Obligations

Mortgage Satisfactions

Recording Timeline After Full Payment

Definition of “Satisfaction”

Liability for Failure to Timely Satisfy

"﴾I Can't Get No﴿ Satisfaction": New Statutory Requirements for Payoff Letters and Satisfactions Mar 07 2014 Practice Area: Banking and Commercial Finance & Real Estate A new Wisconsin statute – Section 708.15 – went into effect on December 14, 2013. The statute establishes requirements for secured creditors in real estate transactions with regard to payoff letters and the satisfaction of mortgages. This Update focuses on the requirements affecting commercial real estate only. There are certain additional requirements that apply to payoff letters and mortgage satisfactions for one‐to‐four family dwellings that are not discussed herein. A person entitled to assert rights under this statute is defined as an "entitled person." An entitled person is any of the following: ﴾a﴿ the person liable for payment or performance of the obligation secured by the real property collateral; ﴾b﴿ the landowner; ﴾c﴿ the person responsible for the preparation of the settlement statement for the conveyance of real property; or ﴾d﴿ the authorized agents for any of them. An entitled person can include an individual, a business, an estate, a trust, a governmental unit, or any other legal or commercial entity. Payoff Letters A secured creditor must provide, upon written request, one payoff statement every two months free of charge, but may charge a fee of $25 for each additional payoff statement requested during any two‐month period. Other new requirements regarding payoff statements include: The secured creditor must honor a request from an entitled person for a payoff statement within a "reasonable time" ﴾of which the shortest reasonable time period would be seven days, per the statute﴿ of the effective date of the request. A request sent by U.S. Postal Service or other standard delivery service is effective three days after it is mailed or deposited with the delivery service. A request sent by overnight delivery is effective the day after it is deposited with the delivery service. A request sent by fax or email is effective on the day it is sent. The payoff statement must be sent to the entitled person who requested it or to the entitled person's authorized agent ﴾if so directed﴿ . The payoff statement must include: The date it was prepared and the amount as of the date it was prepared; The information reasonably necessary to calculate the payoff amount as of the requested payoff date, including the per diem interest; A charge for the $25 payoff statement fee, if applicable; The payment deadline; Where the payment must be made; and Any limitations on method of payment. A secured creditor "may not qualify a payoff amount or state that the payoff amount is subject to change before the payoff date." Among other things, a secured creditor may not expressly reserve the right in the payoff statement to collect additional funds before or subsequent to its receipt of the payoff amount to correct an error or omission in the payoff amount. The payoff amount that the secured creditor is required to include in the payoff statement is "the sum necessary to satisfy … [an obligation the payment or performance of which is secured by a security interest] ." Therefore, as is always the case, a secured creditor should include in its payoff statement the amount of all expenses and fees to which it is entitled under its loan documents, as well as any debt that is cross‐ collateralized by the real property collateral. If a secured creditor understates the payoff amount for any reason, then it may send a corrected payoff statement, but such corrected statement will not bind any person that has already "reasonably and detrimentally" relied upon the previously understated payoff amount. One of the shortfalls of the statute is that it fails to address how a secured creditor should deal with indemnification or other obligations that are not yet determined, but which, by the terms of the mortgage, are secured by the real

FAQs

What does Wisconsin Section 708.15 require secured creditors to provide regarding payoff letters?

Upon written request, a secured creditor must provide one payoff statement every two months free of charge, with a $25 fee for each additional statement in any two-month period. The statement must be honored within a “reasonable time,” and delivery method affects when the request is effective.

What information must a payoff statement include under the statute?

The payoff statement must include the preparation date and payoff amount as of that date, information reasonably necessary to calculate the payoff amount as of the requested payoff date (including per diem interest), any applicable $25 fee, the payment deadline and where payment must be made, plus limitations on payment method.

How does the statute address mortgage satisfactions and recording after full payment?

It requires a secured creditor to submit a satisfaction for recording within 30 days after receiving full payment or performance of the secured obligation, including after receipt of a request to terminate the line of credit where applicable. A document qualifies as a “satisfaction” only when it expressly states the mortgage has been paid or satisfied in whole or part.

Sep 15, 2026

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