AB781, s. 5 6Section 5. 703.08 (1) of the statutes is renumbered 703.08 (1) (intro.) and
7amended to read:
AB781,3,148 703.08 (1) (intro.) Residential real property may not be converted to a
9condominium unless the owner of the residential real property gives 120 days' prior
10written notice of the conversion to each of the tenants of the building or buildings
11scheduled 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
13the 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 15Section 6. 703.08 (1) (a), (b) and (c) of the statutes are created to read:
AB781,3,1616 703.08 (1) (a) The price at which the unit is being offered on the market.
AB781,3,1717 (b) The price contained in any accepted offer to purchase the unit.
AB781,3,1818 (c) The price otherwise agreed to by the tenant and the seller.
Note: See the Note to Sec. 7, below.
AB781, s. 7 19Section 7. 703.08 (2) (intro.) of the statutes is amended to read:
AB781,4,3
1703.08 (2) (intro.) A tenant may not be required to vacate the property during
2the 120-day period immediately following the date of delivery of the notice required
3under 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 4Section 8 . 703.08 (3) of the statutes is created to read:
AB781,4,65 703.08 (3) A tenant may waive in writing his or her first right of purchase under
6sub. (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 7Section 9. 703.09 (1) (g) of the statutes is amended to read:
AB781,4,118 703.09 (1) (g) Statement of the purposes for which the building and each of the
9units 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 12Section 10. 703.09 (1) (h) of the statutes is amended to read:
AB781,5,4
1703.09 (1) (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 5Section 11. 703.09 (1) (k) of the statutes is renumbered 703.09 (1c) and
6amended to read:
AB781,5,107 703.09 (1c) A condominium declaration shall be signed by the owners of the
8property and any first mortgagee of the property or the holder of an equivalent
9security interest in the property
in the same manner as required in conveyances of
10real property.
Note: Requires the declaration to be signed by any first mortgagees of the property
or the holders of an equivalent security interest, in addition to the owners of the property.
This requirement applies only to the declaration submitted for recording under s. 703.07
(1) in order to establish the condominium; it does not apply to amendments to the
declaration.
AB781, s. 12 11Section 12. 703.09 (1f) of the statutes is created to read:
AB781,6,212 703.09 (1f) A condominium declaration may provide for mandatory arbitration
13under ch. 788 of disputes arising out of the declaration, bylaws, or rules involving the
14interests of the declarant, unit owners, association, or board of directors. A
15mandatory arbitration provision in a declaration constitutes a written agreement
16between or among the declarant, association, and board to submit to arbitration a
17dispute covered by the arbitration provision in the declaration. Acceptance of a
18conveyance of a condominium unit constitutes an agreement by the unit owner to

1submit to arbitration a dispute covered by an arbitration provision that is included
2in the declaration at the time of the conveyance.
Note: Expressly allows the declaration to provide for mandatory arbitration under
ch. 788, stats., of disputes involving the interests of the declarant, unit owners,
association, or board of directors when the disputes arise out of the declaration, bylaws,
or rules.
AB781, s. 13 3Section 13. 703.09 (1m) of the statutes is created to read:
AB781,6,64 703.09 (1m) (a) In this subsection, "violation" means a failure to comply with
5the declaration, bylaws, or rules of the condominium association or any act or
6omission that constitutes grounds for eviction under ch. 704.
AB781,6,187 (b) A condominium declaration may provide that a unit owner, as a condition
8of the rental or lease of the unit owner's residential unit, grants the association power
9of attorney to bring an eviction action against a tenant of the unit owner who has
10committed a violation if the unit owner, after being requested by the association to
11evict the tenant, fails to take reasonable action to evict the tenant. Giving notice
12terminating, or not renewing, a tenant's lease or rental agreement within 60 days
13after an eviction request constitutes reasonable action to evict the tenant for
14purposes of this subsection. The declaration may specify notice and procedural
15requirements for the exercise of power of attorney by the association and the
16allocation of responsibility for eviction-related costs between the unit owner and the
17association. An eviction action brought by an association is subject to chs. 704 and
18799.
AB781,6,2119 (c) This subsection applies only to leases or rental agreements that are entered
20into or renewed after 3 years after the effective date of this paragraph .... [revisor
21insert date].
Note: Expressly authorizes the condominium declaration to allow the
condominium association, under specified circumstances, to bring an eviction action
against a tenant who fails to comply with the declaration, bylaws, or association rules or

when there are any grounds for eviction under current law (a "violation"). Specifically,
a declaration may provide that a unit owner, as a condition of renting or leasing his or her
residential unit, grants the association power of attorney to bring an eviction action
against a tenant of the unit owner who commits a violation if the unit owner fails to take
reasonable action to evict the tenant after being requested to do so by the association.
If within 60 days after the eviction request the unit owner gives notice terminating or does
not renew the tenant's lease or rental agreement, that constitutes reasonable action to
evict a tenant. The declaration may specify notice and procedural requirements for the
exercise of power of attorney by the association and the allocation of responsibility for
eviction-related costs between the unit owner and the association. An eviction action
brought by an association is subject to chs. 704 and 799, stats.
AB781, s. 14 1Section 14. 703.09 (2) of the statutes is amended to read:
AB781,7,142 703.09 (2) Except as provided in s. sub. (4) and ss. 703.093, 703.13 (6) (c) and
3(d) and (8) (b), and
703.26, a condominium declaration may be amended with the
4written consent of at least two-thirds of the unit owners aggregate of the votes
5established under sub. (1) (f)
or a greater percentage if provided in the declaration.
6An amendment becomes effective when it is recorded in the same manner as the
7declaration. The document submitting the amendment for recording shall state that
8the required consents and approvals for the amendment were received.
A unit
9owner's written consent is not effective unless it is approved in writing by the first
10mortgagee of the unit, or the holder of an equivalent security interest, if any.
11Approval from the first mortgage lender or equivalent security interest holder, or the
12person servicing the first mortgage loan or its equivalent on a unit, constitutes
13approval of the first mortgagee or equivalent security interest holder under this
14subsection.
Note: 1. Amends the exception clause to add reference to s. 703.09 (4), created by
Sec. 15 of the bill; to s. 703.093, created by Sec. 16 of the bill; and to s. 703.13 (6) (c) and
(d) and (8) (b), treated by Secs. 22 and 23 of the bill. The added references contain
different declaration amendment procedures than the general procedure contained in s.
703.09 (2).
2. Clarifies that reference to "two-thirds of the unit owners" is to two-thirds of the
aggregate of the votes (established under current s. 703.09 (1) (f)). The current reference
is ambiguous.

3. Provides that the required mortgagee approval applies to first mortgagees only
and must be in writing and that approval by the person serving the first mortgage loan
constitutes approval by the first mortgagee.
4. Requires the document submitting the declaration amendment for recording to
state that the required consents and approvals for the amendment were received.
See Sec. 16 of the bill for a new alternative procedure for amending the declaration.
AB781, s. 15 1Section 15 . 703.09 (4) of the statutes is created to read:
AB781,8,62 703.09 (4) A declarant may assign his or her rights and obligations as a
3declarant under this chapter by recording an amendment to the declaration that
4includes the assignment and an acceptance of the assignment that is signed by the
5assignee and acknowledged. A declarant may not assign under this subsection less
6than all of his or her rights and obligations as a declarant under this chapter.
Note: Gives express authorization for a declarant to assign all of his or her rights
and obligations as a declarant under ch. 703 if the declarant records an amendment to
the declaration that includes the assignment and an acceptance of the assignment that
is signed by the assignee and acknowledged. Inclusion of this express authority is not
intended to imply that a declarant currently may not assign rights and obligations.
AB781, s. 16 7Section 16 . 703.093 of the statutes is created to read:
AB781,8,14 8703.093 Alternative procedure for amending declaration. (1) As an
9alternative to s. 703.09 (2), a condominium declaration may be amended under this
10section if at least two-thirds of the aggregate of the votes established under s. 703.09
11(1) (f), or a greater percentage if provided in the declaration, consent to the
12amendment in writing and those consents are approved by the mortgagees or holders
13of equivalent security interests in the units. An amendment becomes effective when
14it is recorded in the same manner as the declaration.
AB781,8,18 15(2) The association has 180 days to secure the required consents and approvals
16under this section, commencing with the recording of an affidavit with the register
17of deeds of the county in which the condominium is located. The affidavit shall do
18all of the following:
AB781,8,1919 (a) Set forth the text of the proposed amendment.
AB781,9,3
1(b) Provide the name and address of the senior executive officer of the
2association to whom inquiries should be directed with regard to the proposed
3amendment.
AB781,9,54 (c) State that a notice was sent to each owner of record and each lender of record
5for each unit of the association on the date the affidavit is recorded.
AB781,9,66 (d) Be signed by the senior executive officer of the association.
AB781,9,11 7(3) Notice of a proposed amendment to a declaration under this section shall
8be mailed on the date the affidavit is recorded under sub. (2) to the owner of each
9condominium unit and to any mortgagee of, or holder of an equivalent security
10interest in, each unit, as identified in a title report prepared on the date the notice
11is sent.
AB781,9,12 12(4) The notice mailed under sub. (3) shall do all of the following:
AB781,9,1413 (a) Contain a copy of the text of the proposed amendment and a current copy
14of this section.
AB781,9,1915 (b) Include a written ballot to be signed by the unit owner, identifying the unit
16casting the ballot and identifying each owner of record of that unit as of the date the
17affidavit is recorded under sub. (2). The ballot shall include a place for any mortgagee
18or equivalent security interest holder to whom notice is sent under sub. (3) to indicate
19its approval or objection under sub. (5) (b).
AB781,9,2220 (c) State that, if more than one person is an owner of the unit and the owners
21cannot agree how to cast the ballot, the unit's vote shall be treated as a vote in
22opposition to the proposed amendment.
AB781,9,2523 (d) State that a ballot signed by only one owner shall count as the ballot of that
24unit, unless more than one ballot is received by the association for that unit, in which
25case all ballots received for that unit must concur in the vote cast or the ballots,

1collectively, shall be treated as a vote in opposition to the proposed amendment by
2that unit.
AB781,10,43 (e) State that the proposed amendment must be voted on as written and that
4no changes to the proposed amendment may be accomplished by this vote.
AB781,10,65 (f) Include the address to which the completed ballot should be mailed or
6delivered.
AB781,10,10 7(5) (a) The owner of each unit shall vote on the proposed amendment by signing
8the ballot before a notary public and by mailing the signed and notarized ballot or
9by personally delivering it to the association of unit owners at the applicable address
10specified under sub. (4) (f).
AB781,10,1411 (b) Each mortgagee or equivalent security interest holder receiving the notice
12under sub. (3) shall signify its approval or objection to the amendment by having an
13authorized person sign the ballot before a notary public and by returning the signed,
14notarized ballot to the association.
AB781,11,4 15(6) The association may rely on the list of owners of record set forth in a title
16report obtained as of the date the affidavit is recorded under sub. (2), unless the
17association receives a written notice, signed and notarized by both the previous
18owner and the new owner, advising the association that ownership of the unit has
19changed. The association shall send a copy of the notice under sub. (3) to the new
20owner of a unit and any mortgagee or equivalent security interest holder promptly
21after receiving notice of the transfer of ownership. It is the responsibility of the new
22unit owner to comply with this section. If the previous owner had voted prior to the
23change in ownership, the new owner may execute the ballot included in the notice
24under sub. (3), which ballot, when returned by the new owner, shall supersede and
25replace any ballot cast by the previous owner if the required approval of any

1mortgagee or equivalent security interest holder is also timely received. The
2180-day period applicable to receipt of the ballot for the unit shall be extended to a
3date 14 days after the ballot is mailed by the association if the ballot is mailed within
414 days before the end of the 180-day period.
AB781,11,9 5(7) Any person acquiring a mortgage or equivalent security interest on a unit
6after the affidavit is recorded under sub. (2) may notify the association in writing of
7the mortgage or equivalent security interest lien, identifying the unit on which it
8holds a lien, and signify its approval of or objection to the proposed amendment to
9the declaration.
AB781,11,17 10(8) If the association receives the required number of consents and approvals
11from unit owners and mortgagees and equivalent security interest holders within
12the required time after the affidavit is recorded under sub. (2), the senior executive
13officer of the association shall record an affidavit in the office of the register of deeds
14of the county in which the condominium is located, setting forth the facts satisfying
15the requirements of this section and providing record notice to all interested persons
16that the declaration has been revised, effective upon the recording of the affidavit,
17and restating the entire declaration, as amended.
AB781,11,21 18(9) The association shall, for a period of 2 years following the recording of the
19amended declaration under sub. (8), retain on file and make available for inspection
20at the place where the condominium financial records are maintained all of the
21following:
AB781,11,2222 (a) The title report under sub. (6) relied upon by the association.
AB781,11,2323 (b) All of the ballots received by the association from unit owners.
AB781,11,2524 (c) All written approvals or objections received by the association from
25mortgagees and equivalent security interest holders.

Note: Provides an alternative procedure for amending the declaration. The key
feature is that the association has 180 days to secure the required consents and approvals
and may rely on the list of owners of record contained in a title report at the beginning
of the 180-day period. (The current amendment procedure does not include this 180-day
"window," but there is no limit on how long the current procedure may take. Provision
is made for notice of the proposed amendment to new unit owners and lienholders during
the 180-day period and for the new owners and lienholders to cast a ballot replacing the
ballot of the previous owner and lienholder. Provision is made to extend the 180-day
period 14 days if the ballot is mailed to the new owner and lienholder within 14 days
before the end of the 180-day period.
The procedure contains substantial detail concerning the commencement of the
180-day period; required notice; voting by unit owners and lienholders and subsequent
unit owners and lienholders; recording the amended declaration; and retention of
materials related to the amendment for 2 years.
AB781, s. 17 1Section 17. 703.10 (2g) of the statutes is created to read:
AB781,12,52 703.10 (2g) Occupancy requirements for board members. The bylaws may
3provide that a unit owner may not serve as a director unless the owner occupies his
4or her unit or may specify the proportion of nonoccupant unit owners who may serve
5as directors.
Note: Expressly provides that the condominium bylaws may provide that a unit
owner may not serve as a director of the condominium association unless the unit owner
occupies his or her unit or may specify the proportion of nonoccupant unit owners who
may serve as directors. Note that under current s. 703.10 (2) (d), stats., not more than
one "nonunit owner" may be on the board.
AB781, s. 18 6Section 18. 703.11 (2) (c) of the statutes is amended to read:
AB781,12,117 703.11 (2) (c) Diagrammatic floor plans Plans that show the location of each
8building located or to be located on the property which show and, if there are units
9in a building, that show
the perimeters, approximate dimensions, floor area
10approximate square footage, and location of each unit in it the building. Common
11elements shall be shown graphically to the extent feasible.
Note: Simplifies the required content of a condominium plat by substituting
"plans showing the location of each building" for "diagrammatic floor plans of each
building", adding "perimeters", and substituting "approximate square footage" for "floor
area". Also makes editorial changes. Reference in the revised provision to "plans" is not
intended to include the construction plans for the building, including all the separate
plans that comprise the construction plans.
AB781, s. 19 12Section 19 . 703.11 (5) of the statutes is created to read:
AB781,13,4
1703.11 (5) Amendment. Except as provided in s. 703.265, amendment of a
2condominium plat by an addendum that is not included as part of an amendment to
3the declaration shall be accomplished in the same manner as an amendment to the
4declaration under s. 703.09 (2).
Note: Clarifies that an amendment of a condominium plat (addendum) that is not
included as part of an amendment to the declaration is to be accomplished in the same
manner as an amendment to the declaration.
AB781, s. 20 5Section 20 . 703.13 (5) (a) of the statutes is amended to read:
AB781,13,116 703.13 (5) (a) A unit owner may make any improvements or alterations within
7his or her unit that do not impair the structural integrity or lessen the support of any
8portion of the condominium and that do not create a nuisance substantially affecting
9the use and enjoyment of other units or the common elements
. A unit owner may not
10change the exterior appearance of a unit or of any other portion of the condominium
11without permission of the board of directors of the association.
Note: For convenience, expressly limits the unit improvements or alterations that
a unit owner may make to exclude those that create a nuisance in the use and enjoyment
of other units or the common elements. Reference to "nuisance" is intended to include
both nuisance under common law and nuisance under other law, e.g., ch. 823, stats.
AB781, s. 21 12Section 21 . 703.13 (5m) of the statutes is created to read:
AB781,13,1713 703.13 (5m) Improvements to limited common elements. (a) If permitted by
14the condominium instruments and subject to par. (b) and to any restrictions or
15limitations specified in the condominium instruments, a unit owner may improve,
16including the enclosure of, the limited common elements appurtenant exclusively to
17that owner's unit if all of the following conditions are met:
AB781,13,2118 1. A statement describing the improvement, including a description of the
19project, the materials to be used, and the project's proposed impact on the appearance
20of the condominium, and identifying the project contractor is submitted to the board
21of directors of the association.
AB781,14,3
12. The improvement will not interfere with the use and enjoyment of the units
2of other unit owners or the common elements or limited common elements of the
3condominium.
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