703.195 History History: 2003 a. 283; 2015 a. 55.
703.195 Note NOTE: 2003 Wis. Act 283, which affected this section, contains extensive explanatory notes.
703.20 703.20 Books of receipts and expenditures.
703.20(1)(1)Record keeping; availability for examination. An association shall keep detailed, accurate records using standard bookkeeping procedures of the receipts and expenditures affecting the common elements, specifying and itemizing the maintenance and repair expenses of the common elements and any other expenses incurred. The records and the vouchers authorizing the payments shall be available for examination by the unit owners at convenient hours.
703.20(2) (2)Disclosure information. Within 10 days after a written request by a seller other than the declarant, an association shall furnish the information necessary for the seller to comply with s. 703.33. The association may charge to the seller, and the seller shall pay to the association, all of the following amounts:
703.20(2)(a) (a) Except as provided in s. 703.205, the actual costs of furnishing the information under s. 703.33 (1), (1m), and (2) or $50, whichever is less.
703.20(2)(b) (b) The actual costs of furnishing the information under s. 703.33 (3m) or $15, whichever is less.
703.20(3) (3)Declarant responsibilities for records. During the period of declarant control under s. 703.15 (2) (c), the declarant is responsible for creating and maintaining the financial and operational records of the association and shall turn the records over to the directors elected under s. 703.15 (2) (f). During the period of declarant control under s. 703.15 (2) (c) and for one year thereafter, upon written request to the association by the lesser of 3 unit owners or the owners of 10 percent of the units, not including units owned by the declarant, the association shall arrange for an independent audit of its financial records at the association's expense. The cost of any audit requested within 36 months after the completion of a previous audit shall be paid for by the requesting unit owners.
703.20 History History: 1977 c. 407; 1985 a. 188; 2003 a. 283; 2017 a. 303.
703.20 Note NOTE: 2003 Wis. Act 283, which affected this section, contains extensive explanatory notes.
703.205 703.205 Establishing fee amounts charged by association.
703.205(1)(1)Limitations on charging certain fees. An association may charge, or increase the amount of, the following fees only if the association follows the procedures under sub. (2):
703.205(1)(a) (a) A fee for furnishing the disclosure information under s. 703.33 (1), (1m), and (2) that is greater than the amount allowed under s. 703.20 (2) (a).
703.205(1)(b) (b) A fee for providing the first payoff statement within a 2-month period as allowed under s. 703.335 (4) (b).
703.205(2) (2)Procedure for establishing fee amounts. An association may establish, or increase the amount of, a fee described under sub. (1) (a) or (b) by doing all of the following:
703.205(2)(a) (a) Providing written notice to unit owners as provided under s. 703.15 (4) (c) at least 48 hours before any meeting at which the association will consider any of the following:
703.205(2)(a)1. 1. Establishing the fee or increasing the amount of the fee.
703.205(2)(a)2. 2. Entering into or modifying a management contract that does any of the following:
703.205(2)(a)2.a. a. If the association does not currently charge the fee, allows the manager to begin charging the fee.
703.205(2)(a)2.b. b. If the association does currently charge the fee, allows the manager to increase the amount of the fee.
703.205(2)(b) (b) Adopting a written resolution, at a meeting described under par. (a), to take any of the actions described under par. (a) 1. or 2.
703.205(2)(c) (c) No later than 48 hours after adopting a resolution described under par. (b), providing written notice to unit owners describing the type of fee established or increased and the amount of the fee established or the amount by which the fee was increased.
703.205(3) (3)Failure to provide notice. An association's failure to provide a notice required under sub. (2) (a) or (c) does not affect the right of the association, directly or under a management contract, to charge a fee established or increased under sub. (2).
703.205 History History: 2017 a. 303.
703.21 703.21 Separate taxation.
703.21(1)(1)Every unit and its percentage of undivided interest in the common elements shall be deemed to be a parcel and shall be subject to separate assessments and taxation by each assessing unit and special district for all types of taxes authorized by law including, but not limited to, special levies based on the value of property and special assessments. Neither the building, the property nor any of the common elements shall be deemed to be a parcel separate from the unit.
703.21(2) (2)The rights, duties and obligations of unit owners under this chapter shall inure to and be binding upon grantees under tax deeds and persons acquiring title by foreclosure of tax liens and their successors in interest.
703.21 History History: 1977 c. 407; 1979 c. 110.
703.21 Annotation Each unit identified in the condominium declaration is a unit for purposes of separate taxation under this section, regardless of whether the unit has been constructed. For purposes of identifying the “unit" as defined in s. 703.02 (15), a unit may exist without a building. The Saddle Ridge Corp. v. Board of Review for Town of Pacific, 2010 WI 47, 325 Wis. 2d 29, 784 N.W.2d 527, 07-2886.
703.22 703.22 Construction and suppliers' liens.
703.22(1)(1)Subsequent to recording a declaration under this chapter and while the property remains subject to this chapter, any and all liens will exist only against individual units and the percentage of undivided interest in the common elements appurtenant to such unit, in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership.
703.22(2) (2)Any construction lien or suppliers' lien under subch. I of ch. 779 arising as a result of repairs to or improvements of a unit by a unit owner shall be a lien only against the unit.
703.22(3) (3)Any construction lien or suppliers' lien under subch. I of ch. 779 arising as a result of repairs to or improvements of the common elements, if authorized in writing by the association, shall be paid by the association as a common expense and until paid shall be a lien against each unit in proportion to the unit's percentage interest in the common elements. On payment of the proportionate amount by any unit owner to the lienor or on the filing of a written undertaking in the manner specified by s. 779.08, the unit owner shall be entitled to a release of the unit owner's unit from the lien, and the association shall not be entitled to assess the unit owner's unit for payment of the remaining amount due for the repairs or improvements.
703.22 History History: 1977 c. 407; 1979 c. 32 s. 92 (9); 2005 a. 204; 2017 a. 333.
703.22 Annotation Because the statute is silent as to the amount each unit should pay when a blanket lien is filed, application of the equitable principal that the lien should be applied proportionately against each unit was appropriate. Torke/Wirth/Pujara v. Lakeshore Towers, 192 Wis. 2d 481, 531 N.W.2d 419 (Ct. App. 1995).
703.23 703.23 Resident agent; exemption of unit owners from liability.
703.23(1)(1)Appointment of resident agent; change in name or address. When any property is submitted to a condominium declaration, the declarant shall appoint a resident agent for the condominium who shall be a citizen and actual resident of the state or corporation duly registered or qualified to do business in the state. The declarant shall file the name and address of the resident agent with the department of financial institutions. The name or address of the resident agent may be changed by the association or other proper authority of the condominium in the same manner and to the same extent that names and addresses of registered agents may be changed by corporations. If the association is incorporated, the registered agent for the association shall be the registered agent for the condominium.
703.23(2) (2)Index of names and address of resident agents. The department of financial institutions shall keep an index of the names and addresses of resident agents and shall make the information available to the public on request.
703.23(3) (3)Suits brought by service on resident agent. Suit may be brought by service on the resident agent in actions against an association, or which arise through any cause relating to the common elements.
703.23(4) (4)Exemption of unit owners from liability for certain claims. Except in proportion to his or her percentage interest in the common elements, no unit owner personally is liable for damages as a result of injuries arising in connection with the common elements solely by virtue of his or her ownership of a percentage interest in the common elements, or for liabilities incurred by the association.
703.23 History History: 1977 c. 407; 1995 a. 27.
703.24 703.24 Remedies for violations by unit owner or tenant of a unit owner.
703.24(1)(1)Definition. In this section, “violation" means failure to comply with this chapter or the declaration, bylaws, or association rules.
703.24(2) (2)Liability for unit owner violation. A unit owner who commits a violation is liable for any charges, fines, or assessments imposed by the association pursuant to the bylaws or association rules as a result of the violation and may be subject to a temporary or permanent injunction.
703.24(3) (3)Liability for violation by tenant.
703.24(3)(a)(a) If a tenant of a unit commits a violation that results in a charge, fine, or assessment imposed by the association pursuant to the bylaws or association rules, the tenant is liable for the charge, fine, or assessment.
703.24(3)(b) (b) If the association complies with the notice requirement of sub. (4), the owner of the unit occupied by the tenant when the violation occurred is liable for any charges, fines, or assessments imposed by the association for which the tenant is liable under par. (a) that are not paid by the tenant within 30 days after receiving the notice under sub. (4). This paragraph does not affect the liability of the tenant to the unit owner for any charges, fines, or assessments paid by the unit owner under this paragraph.
703.24(4) (4)Notice requirement for violation by tenant. If an association imposes a charge, fine, or assessment as a result of a violation by a tenant of a unit in the condominium, the association shall give notice to the tenant by any method under s. 704.21 (1) (a) to (e) and to the owner of the unit occupied by the tenant by any method under s. 704.21 (2) (a) to (d). The notice shall include all of the following:
703.24(4)(a) (a) The amount of charges, fines, or assessments for which the tenant is liable.
703.24(4)(b) (b) Notice that if the tenant fails to pay the association the amount for which the tenant is liable within 30 days after the tenant receives the notice, the owner is liable to the association for the amount unpaid by the tenant although the tenant may be liable to the unit owner for any amounts the unit owner pays.
703.24(5) (5)Other liability not affected. This section does not otherwise affect the liability of a unit owner or tenant who commits a violation.
703.24 History History: 1977 c. 407; 2003 a. 283.
703.24 Note NOTE: 2003 Wis. Act 283, which affected this section, contains extensive explanatory notes.
703.25 703.25 Tort and contract liability.
703.25(1)(1)An action for tort alleging a wrong done by any agent or employee of a declarant or of an association, or in connection with the condition of any portion of a condominium which a declarant or an association has the responsibility to maintain, shall be brought against the declarant or the association, as the case may be. No unit owner shall be precluded from bringing such an action by virtue of its ownership of an undivided interest in the common elements or by reason of its membership in the association or its status as an officer.
703.25(2) (2)An action arising from a contract made by or on behalf of an association shall be brought against the association, or against the declarant if the cause of action arose during the exercise by the declarant of control reserved under the declaration. No unit owner shall be precluded from bringing such an action by reason of its membership in the association or its status as an officer.
703.25(3) (3)A judgment for money against an association shall be a lien against any property owned by the association, and against each of the condominium units in proportion to the liability of each unit owner for common expenses as established under the declaration in an amount not exceeding the market value of the unit, but not against any other property of any unit owner.
703.25 History History: 1977 c. 407.
703.25 Annotation Sections 703.25 (3) and 840.10 (1) permit the filing of a lis pendens in an action for a money judgment against a condominium association as a judgment will be a lien against each condominium unit although their owners are not defendants in the action. Interlaken Service Corporation v. Interlaken Condominium Association, 222 Wis. 2d 299, 588 N.W.2d 262 (Ct. App. 1998), 97-1107.
703.26 703.26 Expanding condominiums.
703.26(1)(1)Declarant may reserve right to expand. A declarant may reserve the right to expand a condominium by subjecting additional property to the condominium declaration in such a manner that as each additional property is subjected to the condominium declaration, the percentage of undivided interests in the common elements of the preceding and new property shall be reallocated between the unit owners on the basis of the aggregate undivided interest in the common elements appertaining to the property.
703.26(2) (2)Conditions to which reservation subject. A reservation of the right to expand a condominium is subject to the conditions provided in this subsection.
703.26(2)(a) (a) A declaration establishing a condominium shall describe each parcel of property which may be added to the condominium.
703.26(2)(b) (b) A declaration establishing a condominium shall show the maximum number of units which may be added, and the percentage interests in the common elements, the liabilities for common expenses and the rights to common surpluses, and the number of votes appurtenant to each unit following the addition of property to the condominium, if added. The percentage interests in the common elements, the liabilities for common expenses and the rights to common surpluses, and the number of votes that each unit owner will have may be shown by reference to a formula or other appropriate method of determining them following each expansion of the condominium.
703.26(2)(c) (c) A condominium plat for an original condominium shall include, in general terms, the outlines of the land, buildings, and common elements of new property that may be added to the condominium.
703.26(2)(d) (d) In a declaration establishing a condominium, a right to expand the condominium may be reserved in the declaration for a period not exceeding 10 years from the date of recording of the declaration.
703.26(3) (3)Recordation of amendments to declaration and plat.
703.26(3)(a)(a) If the conditions of sub. (2) are complied with, property may be added to a condominium if the declarant records an amendment to the declaration, showing the new percentage interests of the unit owners, and the votes which each unit owner may cast in the condominium as expanded, and records an addendum to the condominium plat that includes the detail and information concerning the new property as required in the original condominium plat.
703.26(3)(b) (b) On recording of an amendment of a declaration and an addendum to a plat, each unit owner, by operation of law, has the percentage interests in the common elements, liabilities in the common expenses, rights to common surpluses, and shall have the number of votes, set forth in the amendment to the declaration. Following any expansion, the interest of any mortgagee shall attach, by operation of law, to the new percentage interests in the common elements appurtenant to the unit on which it is a lien.
703.26 History History: 1977 c. 407; 1997 a. 333.
703.26 Annotation Substantial compliance with formal requirements as permitted by s. 703.30 (2) is limited to the condominium status of the property and title of the unit owners. It does not apply to a project's status as an expanding condominium under this section. Rock Lake Estates Unit Owners Association, Inc. v. Town of Lake Mills, 195 Wis. 2d 348, 536 N.W.2d 415 (Ct. App. 1995), 94-2488.
703.265 703.265 Addendum to plat to reflect changes in building codes or zoning ordinances.
703.265(1)(1)If the revision or adoption of a building code or zoning ordinance prevents or substantially affects the construction of a unit or common elements as platted, the declarant may reasonably modify the condominium plat, by addendum, to the extent necessary to comply with the code or ordinance in order to construct the unit or common elements.
703.265(2) (2)If the revision or adoption of a building code or zoning ordinance prevents or substantially affects the reconstruction of a unit or common element as platted, the declarant, unit owner, or association, as appropriate, may reasonably modify the condominium plat, by addendum, to the extent necessary to comply with the code or ordinance in order to reconstruct the unit or common elements.
703.265(3) (3)An addendum made under this section shall be recorded as provided under s. 703.095.
703.265 History History: 2003 a. 283.
703.265 Note NOTE: 2003 Wis. Act 283, which affected this section, contains extensive explanatory notes.
703.27 703.27 Zoning and building regulations.
703.27(1)(1)A zoning or other land use ordinance or regulations may not prohibit the condominium form of ownership or impose any requirements upon a condominium that it would not impose if the development were under a different form of ownership. No provision of a state or local building code may be applied differently to a building in a condominium than it would be applied if the building were under a different form of ownership unless the different application is expressly permitted in that provision and the different application is reasonably related to the nature of condominium ownership. No subdivision ordinance may apply to any condominium unless the ordinance is, by its express terms, applicable to condominiums and the application is reasonably related to the nature of condominium ownership.
703.27(2) (2)No county, city, or other jurisdiction may enact any law, ordinance, or regulation that would impose a greater burden or restriction on a condominium or provide a lower level of services to a condominium than would be imposed or provided if the condominium were under a different form of ownership.
703.27 History History: 1977 c. 407; 2003 a. 283.
703.27 Note NOTE: 2003 Wis. Act 283, which affected this section, contains extensive explanatory notes.
703.275 703.275 Merger or consolidation of condominiums.
703.275(1)(1)Agreement; legal effect. Any 2 or more condominiums, including 2 or more small condominiums or any combination of small condominiums and other condominiums, by agreement of the unit owners as provided in this section, may be merged or consolidated into a single condominium. Unless the agreement otherwise provides, the condominium resulting from a merger or consolidation is, for all purposes, the legal successor of all of the preexisting condominiums and the operations and activities of all associations of the preexisting condominiums shall be merged or consolidated into a single association which shall hold all powers, rights, obligations, assets and liabilities of the preexisting associations. The resultant condominium must bear the name of one of the preexisting condominiums.
703.275(2) (2)Reallocation of interests.
703.275(2)(ac) (ac) In this subsection, “allocated interests" means the undivided percentage interest in the common elements, the liability for common expenses, and the number of votes at meetings of the association appurtenant to each unit.
703.275(2)(bc) (bc) The merger or consolidation agreement shall provide for the reallocation of the allocated interests among the units of the resultant condominium. The agreement may not change the ratio that exists before the merger or consolidation between the allocated interests of any unit and the allocated interests of any other unit in the same preexisting condominium. The agreement shall state one of the following:
703.275(2)(bc)1. 1. The reallocations or the formulas upon which they are based.
703.275(2)(bc)2. 2. The percentage of the total of allocated interests of the new condominium which are allocated to all of the units comprising each of the preexisting condominiums.
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2015-16 Wisconsin Statutes updated through 2017 Wis. Act 367 and all Supreme Court and Controlled Substances Board Orders effective prior to November 13, 2018. Published and certified under s. 35.18. Changes effective after November 13, 2018 are designated by NOTES. (Published 11-13-18)