2001 - 2002 LEGISLATURE
February 7, 2002 - Introduced by Joint Legislative Council. Referred to
Committee on Housing.
1An Act to repeal
703.02 (1d), 703.255 and 703.38 (11); to renumber
703.16 (2), 2
703.275 (2), 703.33 (2) (b) (form) 1., 703.33 (3) and 709.02; to renumber and
703.08 (1), 703.09 (1) (k), 703.16 (3) to (9), 703.33 (4) and 703.38 (10); 4to amend
703.02 (7), 703.02 (14m), 703.06, 703.08 (2) (intro.), 703.09 (1) (g), 5
703.09 (1) (h), 703.09 (2), 703.11 (2) (c), 703.13 (5) (a), 703.13 (6) (c) and (d), 6
703.15 (1), 703.15 (3) (b) 1., 703.15 (4) (d) 1., 703.19 (8), 703.27, 703.275 (1), 7
703.33 (2) (intro.), 703.33 (2) (a) (form) 2., 703.33 (2) (a) (form) 3., 703.33 (2) (c), 8
703.365 (title), (1), (2) and (3), 703.365 (4), (5), (6) (a) (intro.) and (c), (7) and (8) 9
and 703.37; to repeal and recreate
703.24; and to create
703.08 (1) (a), (b) 10
and (c), 703.08 (3), 703.09 (1f), 703.09 (1m), 703.09 (4), 703.093, 703.10 (2g), 11
703.11 (5), 703.13 (5m), 703.13 (8), 703.15 (3) (b) 8., 703.155 (7), 703.16 (2) (b), 12
703.161, 703.163, 703.165 (title) and (1), 703.195, 703.20 (3), 703.25 (4), 13
703.265, 703.275 (2) (ac), 703.315, 703.33 (1) (h), 703.33 (1m), 703.33 (2) (b) 14
(form) 1c., 703.33 (3c), 703.33 (4) (b) and (c), 703.365 (3m), 703.38 (10) (b),
709.02 (2) and 823.015 of the statutes; relating to: revisions and additions to
Analysis by the Legislative Reference Bureau
This bill is explained in the Notes provided by the joint legislative council in
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
Prefatory note: This bill was developed by the joint legislative council's special
committee on condominium law review. The provisions of the bill are described
throughout the bill in Notes to individual provisions.
AB781, s. 1
703.02 (1d) of the statutes is repealed.
Note: Repeals the definition of "allocated interests" from the general definitions
section of ch. 703. The term is used only in s. 703.275, relating to merger or consolidation
of condominiums. Consequently, the term is defined by this bill in s. 703.275 for purposes
of s. 703.275. See Sec. 45 of the bill.
AB781, s. 2
703.02 (7) of the statutes is amended to read:
"Declarant" means any owner who subjects his or her property to a 6
condominium declaration established under this chapter. The term includes an
7assignee of the declarant under s. 703.09 (4).
Note: The term "declarant" will include an assignee of the declarant if the
conditions of new sub. (4) of current s. 703.09 are met. See Sec. 15 of the bill.
AB781, s. 3
703.02 (14m) of the statutes is amended to read:
condominium" means a condominium with no 10
more than 4 12
units, all of which are restricted to residential uses
Note: Revises the definition of "small residential condominium" by increasing the
maximum number of units from 4 to 12 and eliminating the requirement that all the units
be restricted to residential uses. As a result, the defined term is changed to "small
condominium". See also Secs. 59 to 61 of the bill, which make related changes to current
s. 703.365, relating to small residential condominiums.
The expanded availability of the streamlined regulations for the creation and
operation of "small" condominiums under s. 703.365 reflects the utility and acceptance
of the regulations, enacted in 1986.
AB781, s. 4
703.06 of the statutes is amended to read:
1703.06 Alterations prohibited.
Except as otherwise provided in this 2
chapter, no unit owner may do make
any alteration which that
would jeopardize the 3
soundness or safety of the property, reduce the value thereof, or
impair any easement 4
or hereditament, or change the exterior appearance of a unit or any other portion of
5the condominium not part of the unit
Note: For convenience, adds reference in this section to the general prohibition in
s. 703.13 (5) (a) against changing the exterior appearance of a unit or of any other portion
of the condominium without permission of the association board of directors.
AB781, s. 5
703.08 (1) of the statutes is renumbered 703.08 (1) (intro.) and 7
amended to read:
(intro.) Residential real property may not be converted to a 9
condominium unless the owner of the residential real property gives
written notice of the conversion to each of the tenants of the building or buildings 11
scheduled for conversion. A tenant has the exclusive option to purchase the unit for
12a During the 60-day
period of 60 days immediately
following the date of delivery of 13
the notice a tenant has the first right to purchase the unit, if the unit is offered for
14sale at any time during that period, for any of the following:
Note: See the Note to Sec. 7, below.
AB781, s. 6
703.08 (1) (a), (b) and (c) of the statutes are created to read:
(a) The price at which the unit is being offered on the market.
(b) The price contained in any accepted offer to purchase the unit.
(c) The price otherwise agreed to by the tenant and the seller.
Note: See the Note to Sec. 7, below.
AB781, s. 7
703.08 (2) (intro.) of the statutes is amended to read:
(intro.) A tenant may not be required to vacate the property during 2
period immediately following the date of delivery
of the notice required 3
under sub. (1) except for:
Note: Under current law, residential property may not be converted to a
condominium unless the property owner gives 120 days' prior written notice of the
conversion to each of the tenants of the building scheduled for conversion. A tenant has
the "exclusive option to purchase" the unit for a period of 60 days following the date of
delivery of the notice. Sections 5 to 8 of this bill revise current law by:
1. Providing that the property may be converted to a condominium immediately
upon completion of the notice requirement, rather than 120 days after notice. However,
the tenant's rights relating to occupying and purchasing the property are preserved.
2. Clarifying that during the 60-day period immediately following the date of
delivery of the conversion notice, a tenant has the "first right to purchase" (not the
"exclusive option to purchase") the unit if the unit is offered for sale at any time during
the 60-day period:
a. For the price at which the unit is being offered on the market.
b. For the price contained in any accepted offer to purchase the unit (from any
prospective purchaser, not just the tenant).
c. For the price otherwise agreed to by the tenant and the seller.
3. Expressly authorizing the tenant to waive in writing his or her occupancy right
and first right to purchase.
AB781, s. 8
703.08 (3) of the statutes is created to read:
A tenant may waive in writing his or her first right of purchase under 6
sub. (1), his or her right to remain on the property under sub. (2), or both.
Note: See the Note to Sec. 7, above.
AB781, s. 9
703.09 (1) (g) of the statutes is amended to read:
(g) Statement of the purposes for which the building and each of the 9
units are intended and restricted as to use, including any requirement applicable to
10or restriction on the rental of residential units or reference to any such requirement
11or restriction in the bylaws
Note: Requires the condominium declaration to include any requirement
applicable to or restriction on the rental of residential condominium units or reference to
any such requirement or restriction in the bylaws.
AB781, s. 10
703.09 (1) (h) of the statutes is amended to read:
(h) The name of the person to receive service of process in the cases
2provided in this chapter, together with the and
address of that person and the method
3by which the association may designate a successor to the person
the resident agent
4under s. 703.23
Note: Substitutes reference to the "resident agent under s. 703.23" for the current
requirement that the declaration include the name of the person "to receive service of
process in the cases provided in this chapter". Since s. 703.23, stats., also provides for
changing the resident agent, the bill also removes the requirement that the declaration
indicate the method by which the association may designate a successor to the person
designated to receive service of process.
AB781, s. 11
703.09 (1) (k) of the statutes is renumbered 703.09 (1c) and 6
amended to read: