707.24(3)
(3) Agreement without sales contract. 707.24(3)(a)(a) Unless the termination agreement sets forth a sales contract described in
sub. (4), title to an estate or interest in each time-share unit, equal to the sum of the time shares in the time-share unit, shall vest upon termination in the time-share owners of the time-share unit in proportion to their respective interests under
sub. (6m) or
(7), and liens on the time shares shall shift accordingly to encumber those interests.
707.24(3)(b)
(b) Upon termination, an owner of an estate or interest in a time-share unit under
par. (a) may maintain an action for partition under
ch. 842.
707.24(4)
(4) Agreement with sales contract. If the termination agreement sets forth the material terms of a contract or proposed contract under which an estate or interest in each time-share unit, equal to the sum of the time shares in the time-share unit, is to be sold and designates a trustee to effect the sale, title to that estate or interest shall vest upon termination in the trustee for the benefit of the time-share owners, to be transferred under the contract. Proceeds of the sale shall be distributed to time-share owners and lienholders under
sub. (6).
707.24(5)
(5) Rights and liabilities after termination. Except as otherwise specified in the termination agreement, if the former time-share owners or their trustee holds title to the estate or interest equal to the sum of the time shares, each former time-share owner and the time-share owner's successors in interest have the same rights with respect to occupancy in the former time-share unit that the former time-share owner would have had if termination had not occurred, together with the same liabilities and other obligations imposed under this chapter or the time-share instrument.
707.24(6)
(6) Distribution of proceeds. After termination of all time shares in a time-share property and adequate provision for the payment of the claims of the creditors for time-share expenses, the proceeds shall be distributed to the former time-share owners and their successors in interest in proportion to their interests as determined under
sub. (6m) or
(7). The distribution shall consist of the proceeds of any sale under this section and the proceeds of any personalty or other funds held for the use and benefit of the former time-share owners. After termination, creditors of the association holding liens perfected against the time-share property before the termination may enforce those liens in the same manner as any other lienholder. All other creditors of the association shall be treated as if they had liens on time-share property which were perfected immediately before termination.
707.24(6m)
(6m) Interests specified. The time-share instrument may specify the respective fractional or percentage interest in the estate or interest in each time-share unit equal to the sum of the time shares in the time-share unit that will be owned by each former time-share owner.
707.24(7)(a)(a) If the specification under
sub. (6m) is not made, an appraisal under
par. (b) of the fair market value of each time share shall be made not more than 180 days before the termination by one or more impartial qualified appraisers, selected either by the trustee designated in the termination agreement or by the managing entity if no trustee is designated.
707.24(7)(b)
(b) The appraisal shall state the corresponding fractional or percentage interests calculated in proportion to those values and shall be made in accordance with all of the following:
707.24(7)(b)1.
1. If the termination agreement sets forth a sales contract described in
sub. (4), each time share conferring a right of occupancy during a limited number of time periods shall be appraised as if the time until the date specified for the conveyance of the property had already elapsed.
707.24(7)(b)2.
2. If the termination agreement does not set forth a sales contract described in
sub. (4), each time share conferring a right of occupancy during a limited number of time periods shall be appraised as if the date specified under
sub. (2) had already elapsed.
707.24(7)(b)3.
3. The interest of each time-share owner is the value of the time share divided by the sum of the values of all time shares in the unit or units to which the time share applies.
707.24(7)(c)
(c) A notice stating all values and corresponding interests determined under
par. (b) and the return address of the sender shall be sent by certified or registered mail by the managing entity or by the trustee designated in the termination agreement to all time-share owners.
707.24(7)(d)
(d) The appraisal governs the magnitude of each interest unless at least 25% of the time-share owners deliver, within 60 days after the notices required under
par. (c) are mailed, written disapprovals to the sender of the notice or unless a court determines that the appraisal should be set aside.
707.24(8)
(8) Foreclosure. Foreclosure or enforcement of a lien or encumbrance against all of the time shares in a time-share property does not, of itself, terminate those time shares.
707.24 History
History: 1987 a. 399.
707.25
707.25
Use for sales purposes. 707.25(1)
(1) Except as provided in
sub. (2), a developer may maintain sales offices, management offices and models in the time-share property only if the time-share instrument so provides and specifies the rights of a developer with regard to the number, size, location and relocation of the offices. The developer may maintain signs on the time-share property advertising the time-share property.
707.25(2)
(2) A developer's authority under
sub. (1) is subject to restrictions in ordinances and the project instrument.
707.25 History
History: 1987 a. 399.
707.26
707.26
Rights of secured lenders. The time-share instrument may require that all or a specified number or percentage of holders of mortgages or equivalent security interests encumbering units or time shares approve specified actions of the unit owners, time-share owners, the developer or the managing entity as a condition to the effectiveness of those actions, but no requirement for approval may do any of the following:
707.26(1)
(1) Control over administration. Deny or delegate control over the general administrative affairs of an association by the unit owners or time-share owners, or their elected representatives.
707.26(2)
(2) Involvement in litigation. Prevent an association from commencing, intervening in or settling any litigation or proceeding or receiving and distributing insurance proceeds under
s. 707.35.
707.26 History
History: 1987 a. 399.
MANAGEMENT OF TIME-SHARE PROPERTY
707.30
707.30
Managing entity; association of unit owners. 707.30(1)(1)
Legal entity. Except as otherwise provided in this section, the affairs of every time-share property shall be managed by an association which, whether incorporated or unincorporated, is a legal entity for all purposes.
707.30(2)(a)1.1. If the number of time shares in a time-share property exceeds 12, the developer shall establish an association to govern the time-share property not later than the date of the first conveyance of a time share in the time-share property to a purchaser. The association shall be organized as a profit or nonprofit corporation or as an unincorporated association. After it is organized, the membership of the association shall at all times consist exclusively of all of the time-share owners.
707.30(2)(a)2.
2. If a developer does not establish an association under
subd. 1., any interested party, including a time-share owner or a holder of a lien in the time-share property, may petition the circuit court in the county in which the time-share property is located to establish an association and prescribe the powers of the managing entity in accordance with
sub. (5).
707.30(2)(b)
(b)
Twelve or fewer time shares. If the number of time shares in the time-share property is 12 or fewer, 3 or more time-share owners may form an association to manage the time-share property.
707.30(3)
(3) Developer control period. Until an association is established under
sub. (2) or unless time-share owners exercise the authority granted under
sub. (6), the developer has the power and responsibility to act in all instances in which this chapter, any other provision of law, the time-share instrument or project instrument requires action by the association or its officers.
707.30(4)(a)(a) All powers of the association under
sub. (5) shall be exercised by and under the authority of, and the business and affairs of the association shall be conducted by, a board of directors elected in accordance with
pars. (b) to
(d).
707.30(4)(b)
(b) The developer or persons designated by the developer may appoint or remove the members of the association's board of directors, except as provided in
par. (c).
707.30(4)(c)1.1. Time-share owners other than the developer may elect no less than one-third of the members of the board of directors of the association when time-share owners other than the developer own 15% or more of the time shares in a time-share property.
707.30(4)(c)2.
2. Time-share owners other than the developer may elect no less than a majority of the members of the board of directors of an association when the first of any of the following occurs:
707.30(4)(c)2.a.
a. Three years after 50% of the time shares in a time-share property have been conveyed to purchasers.
707.30(4)(c)2.b.
b. Three months after 90% of the time shares in a time-share property have been conveyed to purchasers.
707.30(4)(c)2.c.
c. All of the time shares that will ultimately be operated by the association have been completed, some of them have been conveyed to purchasers, and none of the others is being offered for sale by the developer in the ordinary course of business.
707.30(4)(c)2.d.
d. Some of the time shares have been conveyed to purchasers and none of the others is being constructed or offered for sale by the developer in the ordinary course of business.
707.30(4)(c)3.
3. The developer or persons designated by the developer may not remove any member of the board of directors who was elected by the time-share owners.
707.30(4)(d)
(d) Within 60 days after the time-share owners are entitled under
par. (c) to elect a member or members of the board of directors of an association, the association shall call, upon not less than 30 days' nor more than 40 days' notice, a meeting of the time-share owners to elect the members of the board of directors. Any time-share owner may call and give notice of a meeting under this paragraph if the association fails to do so.
707.30(5)(a)(a) Subject to
par. (c) and the time-share instrument, the association may do any of the following:
707.30(5)(a)1.
1. Adopt, amend and repeal bylaws, rules and regulations.
707.30(5)(a)2.
2. Adopt and amend budgets for revenues, expenditures and reserves, and levy and collect assessments for time-share expenses from time-share owners.
707.30(5)(a)3.
3. Employ and dismiss employees, agents and independent contractors.
707.30(5)(a)4.
4. Commence, defend or intervene in court actions or administrative proceedings in its name on behalf of itself or 2 or more time-share owners on matters affecting the time-share property or time shares.
707.30(5)(a)6.
6. Regulate the use, maintenance, repair, replacement and modification of the time-share property.
707.30(5)(a)7.
7. Cause additional improvements to be made to the time-share property.
707.30(5)(a)8.
8. Impose charges for late payment of assessments and, after notice and an opportunity to be heard, levy reasonable fines for violations of the time-share instrument, bylaws and rules or regulations of the association.
707.30(5)(a)9.
9. Impose reasonable charges for the preparation of resale certificates required by
s. 707.48 (2) or statements of unpaid assessments.
707.30(5)(a)10.
10. Exercise any other powers conferred by the time-share instrument or bylaws.
707.30(5)(a)11.
11. Impose and receive any payments, fees or charges for the use, rental or operation of the time-share property and for services provided to time-share owners.
707.30(5)(a)12.
12. Acquire, hold, encumber and convey in its name any right, title or interest in or to real or personal property.
707.30(5)(a)13.
13. Assign its right to future income, including the right to receive assessments for time-share expenses, but only to the extent that the time-share instrument expressly so provides.
707.30(5)(a)14.
14. Provide for the indemnification of its directors and officers and maintain directors' and officers' liability insurance.
707.30(5)(a)15.
15. Exercise all other powers that may be exercised in this state by legal entities of the same type as the association.
707.30(5)(a)16.
16. Exercise any other powers necessary and proper for the governance and operation of the association.
707.30(5)(b)
(b) Except as otherwise provided in the time-share instrument, the manager, to the extent permitted by the management contract, may exercise the powers specified in
par. (a) 1. to
11.
707.30(5)(c)1.1. The time-share instrument may not impose limitations on the power of the association to deal with the developer which are more restrictive than the limitations imposed on the power of the association to deal with other persons.
707.30(5)(c)2.
2. If the time-share property is a part of a project, this section may not confer any powers on the managing entity, the developer or the time-share owners with respect to any portion of the project other than the units comprising the time-share property.
707.30(6)
(6) Powers and responsibility if no managing entity. If the number of time shares in the time-share property is 12 or fewer and no managing entity is established, the time-share owners shall have all of the following:
707.30(6)(a)
(a) The powers in
sub. (5) (a) 1. to
11., subject to any restrictions and limitations specified by the time-share instrument. If the time-share instrument is silent with respect to the manner of exercise of any of these powers, the time-share owners may exercise the power only by unanimous action.
707.30(7)
(7) Campgrounds excluded. This section does not apply to time-share property in which a campground member owns a time-share easement in a campground.
707.30 History
History: 1987 a. 399.
707.31
707.31
Transfer of special developer rights. 707.31(1)
(1)
Definition. In this section, "special developer right" means a developer's right to do any of the following:
707.31(1)(b)
(b) Maintain sales offices, management offices, models and signs under
s. 707.25.
707.31(1)(c)
(c) Appoint, control or serve as the managing entity.
707.31(2)
(2) Requirements for transfer. No special developer right may be transferred except by an instrument executed by both the transferor and transferee which evidences the transfer and is recorded in every county in which any portion of the time-share property is located.
707.31(3)
(3) Liability of transferor. Upon transfer of a special developer right, the liability of a transferor shall be as follows:
707.31(3)(a)
(a) The transferor may not be relieved of any obligation or liability arising before the transfer, and the transferor shall remain liable for warranty obligations imposed upon him or her under
s. 707.53. Lack of privity may not deprive a time-share owner of standing to maintain an action to enforce an obligation of the transferor.
707.31(3)(b)
(b) If a successor to a special developer right is an affiliate of the developer, the transferor shall be jointly and severally liable with the successor for any obligations or liabilities of the successor relating to the time-share property.
707.31(3)(c)
(c) If the transferor retains any special developer right but transfers other special developer rights to a successor who is not an affiliate of the developer, the transferor shall be liable for any obligations or liabilities imposed on a developer either by this chapter or by the time-share instrument relating to the retained special developer rights and arising after the transfer.
707.31(3)(d)
(d) A transferor is not liable for any act or omission or any breach of a contractual or warranty obligation arising from the exercise of a special developer right by a successor developer who is not an affiliate of the transferor.
707.31(4)
(4) Rights where foreclosure or tax sale. 707.31(4)(a)1.1. Unless otherwise provided in a mortgage instrument or deed of trust, in case of foreclosure of a mortgage, tax sale, judicial sale, sale by a trustee under a deed of trust, or sale under bankruptcy or receivership proceedings, of any time shares owned by a developer in the time-share property, a person acquiring title to all of the time shares being foreclosed or sold shall succeed, depending upon his or her request, to one of the following:
