The Federal Act included a provision that each State must enact legislation in accordance with the SAFE Act's nationwide standards for mortgage loan originators. The Wisconsin Legislature, seeking to comply with the Federal mandate, made substantial changes to Wis. Stat. chapter 224 which governs mortgage banking laws in Wisconsin. Unfortunately, the new law created some unintended consequences for real estate agents and brokers. The most notable of these consequences is that a real estate agent negotiating a real estate transaction on a 1-4 family property where the buyer intends to occupy, and where the seller will be providing a land contract, second mortgage or a purchase mortgage loan for a personal, family or household purpose would need to be licensed as a mortgage loan originator.
In short, the Seller's Realtor may no longer negotiate land contract offers (or offers providing for first or second mortgage financing provided by the seller) on 1-4 unit properties where the buyer intends to owner-occupy, unless the Seller's Realtor is also licensed as a mortgage loan originator in the State of Wisconsin.
In conclusion, I'd highly suggest contacting an attorney and/or mortgage loan originator to further discuss the topic of land contracts.
For more information, please visit http://www.wra.org/WREM/Sept10/SAFEact/?terms=land%20contract
Hope this helps!
Mark is right on the money...just no sense in risking the $500 fine and the ethics class the Realtors Association would make him sit thru if some out-of-state know-it-all saw fit to turn him in.