Alien Ownership Law

by Steve Zablocki, State Underwriting Counsel

Wisconsin Statutes limit non-resident aliens and corporations from acquiring, owning, or holding any interest, directly or indirectly, in more than 640 acres of land [Wis. Stat. §710.02(1)]. The prohibition excludes situations where the interest is used to secure repayment of a debt incurred in good faith and bars aliens and corporations not created under the laws of the United States of America [Id.]. The prohibition is on cumulative ownership. That is, all land obtained within the State. If the interest in land exceeds 640 acres, the excess land is forfeited to the State [Wis. Stat. §710.02(5)].

For our purposes, if you run into a transaction where after reviewing the organizational documents and it is determined the purchaser is either an alien individual or corporation and the amount of land being purchased is substantial, you should determine if there is other land owned by the individual or entity.

When you have that information, contact underwriting. We will need to make sure that there are no irregularities related to any financing and may have to raise the possibility of forfeiture as an exception. The acquisition may be an act of the insured. However, we should still be vigilant, and if you encounter the situation, you must contact underwriting.

Contact the First American Wisconsin Agency at wisconsinagency@firstam.com or 800.362.8205.

The information contained in this document was prepared by First American Title Insurance Company (“FATICO”) for informational purposes only and does not constitute legal advice. FATICO is not a law firm and this information is not intended to be legal advice. Readers should not act upon this without seeking advice from professional advisers.

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