10
Change of Ownership
When a rental unit changes owners in the middle of a
lease, the new owner must observe all terms of the
existing lease. The new owners cannot make changes
(except minor rule changes) until the lease expires. Wis.
Stat. sec. 704.09(3).
Foreclosure – Protecting Tenants at
Foreclosure Act
If a tenant suspects that their rental property is in
foreclosure or is going into foreclosure, the tenant
should continue to make their rental payments as
required by the rental agreement unless the tenant is
otherwise directed by the court or by the agent
handling the foreclosure.
A tenant can determine whether their rental property is
in foreclosure by contacting the Clerk of Court for their
county. A tenant can also check on the Internet at the
Wisconsin Circuit Court access site, wcca.wicourts.gov.
If a tenant finds that their rental property is in
foreclosure, a tenant can contact the party foreclosing
to determine how the foreclosure might affect their
rental agreement.
Even though the bank is receiving the rent payments, all
other rights and responsibilities that the
owner/landlord has with respect to the tenants remain
in place. Until the bank actually forecloses, the owner is
still the owner. Landlords must maintain the rental unit
in a fit and habitable condition, the financial institution
is not explicitly obligated to assume the maintenance
duties of the owner.
Penalties for violating the residential
rental practice rule
The department understands that a vast majority of
landlords strive to fully comply with the rules
voluntarily. When the department finds violations, it
tries to obtain voluntary compliance from the
appropriate party whenever possible. However, if
enforcement action becomes necessary, violations of
the rules in ATCP 134 may result in penalties.
The actual penalties imposed by a court will depend on
the seriousness of the violations and the damages or
harm that resulted. Under Wis. Stat. sec. 100.26(6), a
court may impose a civil forfeiture of not less than $100
nor more than $10,000 for each violation. A district
attorney may also bring criminal misdemeanor charges
for violations of these rules which may result in a fine
not less than $25 nor more than, up to $5,000 for each
violation or a year in the county jail, or both. See Wis.
Stat. sec. 100.26(3).
In addition to any other penalties, the court may issue
an injunction telling the person not to violate the rules
again in the future and may order the person who
violated the rules to pay restitution to the victim.
A person may also bring a private action under Wis.
Stat. sec. 100.20(5) to recover the “pecuniary loss”
caused by violations of ATCP 134.
The Department of Agriculture, Trade, and Consumer
Protection investigates alleged violations of the
Residential Rental Practices rules. If prosecution is
necessary, the department works in cooperation with
the Wisconsin Department of Justice, or the local
District Attorney.
Private remedy for violations of the
rules
State law allows anyone who suffers monetary losses
because of violations of the Residential Rental Practices
rules to file a lawsuit on their own in state court (usually
small claims court) against the violator. In a private
individual lawsuit, the victim can recover from the
violator up to twice the amount of their “pecuniary
loss” that is their monetary “out-of-pocket” losses (or
damages), plus costs including reasonable attorney's
fees under Wis. Stat. sec. 100.20(5). How much a
person actually recovers depends on whether the victim
can satisfactorily prove to the court what monetary
losses and damages are suffered. The exact amount the
victim recovers is decided by the courts.
Parties may seek this remedy directly in court without
filing a complaint with the department. However, the
department’s involvement can often assist in resolving a
complaint. In addition, complaints assist the
department in monitoring the business’ practices to
ensure they are following Wisconsin’s Residential Rental
Practices rules.
For more information, see the notes following Wis.
Admin. Code ch. ATCP 134.05(3) and ATCP 134.06(2)(a)
which references a decision issued by the Wisconsin
Supreme Court. That decision, Pierce v. Norwick, 202
Wis. 2d 588 (1996), provides some guidance on what