The affairs of every condominium shall be governed by an association which, even if unincorporated, is constituted a legal entity for all purposes.
Every declarant shall establish an association to govern the condominium not later than the date of the first conveyance of a unit 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 unit owners.
Power and responsibility prior to establishment.
Until an association is established, a declarant has the power and responsibility to act in all instances where this chapter, any other provision of the law, or the declaration require action by the association or its officers.
Except as provided in par. (d)
, a declarant may authorize the declarant or persons designated by him or her to appoint and remove the officers of the association or to exercise the powers and responsibilities otherwise assigned by the declaration or this chapter to the association or its officers. A declaration may not authorize any declarant control of the association for a period exceeding the earlier of any of the following:
Thirty days after the conveyance of 75% of the common element interest to purchasers.
The period of declarant control begins on the date that the first condominium unit is conveyed by a declarant to any person other than the declarant. If there is any other unit owner other than a declarant, a declaration may not be amended to increase the scope or the period of the declarant control.
Meeting to elect directors.
Prior to the conveyance of 25% of the common element interest to purchasers, an association shall hold a meeting and the unit owners other than the declarant shall elect at least 25% of the directors of the executive board. Prior to the conveyance of 50% of the common element interest to purchasers, an association shall hold a meeting and the unit owners other than the declarant shall elect at least 33 1/3% of the directors of the executive board.
Calculation of percentage.
The calculation of the percentage of common element interest conveyed to purchasers under pars. (c)
shall be based on the percentage of undivided interest appertaining to each unit which has been conveyed assuming that all the units to be completed are included in the condominium.
Elections after expiration of declarant control.
Not later than 45 days after the expiration of any period of declarant control, an association shall hold a meeting and the unit owners shall elect an executive board of at least 3 directors and officers of the association. The directors and officers shall take office upon election.
Adopt budgets for revenues, expenditures and reserves and levy and collect assessments for common expenses from unit owners;
Exercise any other power conferred by the condominium instruments or bylaws.
Subject to any restrictions and limitations specified by the declaration, an association may:
Regulate and impose charges for the use of common elements.
Cause additional improvements to be made as a part of the common elements.
Acquire, hold, encumber and convey any right, title or interest in or to real property.
Grant easements through or over the common elements.
Receive any income derived from payments, fees or charges for the use, rental or operation of the common elements.
Grant or withhold approval of any action by a unit owner or other person which would change the exterior appearance of the unit or of any other portion of the condominium.
(4) Roster of unit owners; meetings of association. 703.15(4)(a)(a)
An association shall maintain a current roster of names and addresses of every unit owner to which notice of meetings of the association shall be sent.
Every unit owner shall furnish the association with his or her name and current mailing address. No unit owner may vote at meetings of the association until this information is furnished.
No regular or special meeting of the association may be held except on at least 10 days' written notice delivered or mailed to every unit owner at the address shown on the roster or unless waivers are duly executed by all unit owners.
At meetings of the association every unit owner is entitled to cast the number of votes appurtenant to his or her unit. Unit owners may vote by proxy, but, the proxy is effective only for a maximum period of 180 days following its issuance, unless granted to a mortgagee or lessee. If only one of multiple owners of a unit is present at a meeting of the association, the owner is entitled to cast the votes allocated to that unit.
If more than one of the multiple owners is present, the votes allocated to that unit may be cast proportionally among the owners unless the condominium instruments expressly provide otherwise, but unanimous agreement is conclusively presumed if any one of them purports to cast the votes allocated to that unit without protest being made promptly by any of the others to the person presiding over the meeting or until any one of the multiple owners files a statement with the secretary of the association stating that thereafter the vote must be cast proportionally.
Unless otherwise provided in this chapter, and subject to provisions in the bylaws requiring a different majority, decisions of an association shall be made on a majority of votes of the unit owners present and voting.
(5) Unit owner's interest in association's property.
No unit owner may have any right, title or interest in any property owned by the association other than as holder of a percentage interest in common elements appurtenant to its unit.
Master associations. 703.155(1)(1)
In this section, "master association" means a profit or nonprofit corporation or unincorporated association which exercises the powers under s. 703.15 (3)
on behalf of one or more condominiums or for the benefit of the unit owners of one or more condominiums.
If a declaration provides that any of the powers described in s. 703.15 (3)
are to be exercised by or may be delegated to a master association, all provisions of this chapter applicable to an association apply to the master association, except as modified by this section or the declaration.
(3) Powers limited.
Unless a master association is the only association for a condominium under s. 703.15 (1)
, it may exercise the powers set forth in s. 703.15 (3)
only to the extent expressly permitted in the declarations that are associated with the master association or expressly described in the delegations of power from those condominiums to the master association.
(4) Liability limited.
If a declaration provides that the executive board may delegate certain powers to a master association, the members of the executive board have no liability for the acts or omissions of the master association with respect to the exercise of those powers following delegation.
(5) Unit owners; rights and responsibilities.
The rights and responsibilities of unit owners with respect to the association set forth in s. 703.15
apply, in the conduct of the affairs of a master association, only to those persons under sub. (6)
who elect the executive board of a master association, whether or not those persons are unit owners.
(6) Master association; election of executive board.
Notwithstanding s. 703.15 (2) (f)
and whether or not a master association is also an association described in s. 703.15 (1)
, the instrument creating the master association and the declaration of each condominium the powers of which are assigned by the declaration or delegated to the master association shall provide that the executive board of the master association shall be elected after the period of declarant control in any of the following ways:
All unit owners of all condominiums subject to the master association may elect all members of the executive board.
All members of the executive boards of all condominiums subject to the master association may elect all members of the executive board.
All unit owners of each condominium subject to the master association may elect specified members of the executive board.
All members of the executive board of each condominium subject to the master association may elect specified members of the executive board.
History: 1985 a. 188
Common expenses and common surpluses. 703.16(1)(1)
Disposition of common surpluses.
All common surpluses of the association shall be credited to the unit owners' assessments for common expenses in proportion to their percentage interests in the common elements or as otherwise provided in the declaration or shall be used for any other purpose as the association decides.
(2) Funds for payment of common expenses obtained by assessments.
Funds for the payment of common expenses and for the creation of reserves for the payment of future common expenses shall be obtained by assessments against the unit owners in proportion to their percentage interests in the common elements or as otherwise provided in the declaration.
(3) Liability for assessments.
A unit owner shall be liable for all assessments, or instalments thereof, coming due while owning a unit. In a voluntary grant, the grantee shall be jointly and severally liable with the grantor for all unpaid assessments against the grantor for his or her share of the common expenses up to the time of the voluntary grant for which a statement of condominium lien is recorded, without prejudice to the rights of the grantee to recover from the grantor the amounts paid by the grantee for such assessments. Liability for assessments may not be avoided by waiver of the use or enjoyment of any common element or by abandonment of the unit for which the assessments are made.
(4) Assessments constitute lien.
All assessments, until paid, together with interest on them and actual costs of collection, constitute a lien on the units on which they are assessed, if a statement of lien is filed within 2 years after the date the assessment becomes due. The lien is effective against a unit at the time the assessment became due regardless of when within the 2-year period it is filed. A statement of condominium lien is filed in the land records of the clerk of circuit court of the county where the unit is located, stating the description of the unit, the name of the record owner, the amount due and the period for which the assessment was due. The clerk of circuit court shall index the statement of condominium lien under the name of the record owner in the judgment and lien docket. The statement of condominium lien shall be signed and verified by an officer or agent of the association as specified in the bylaws and then may be filed. On full payment of the assessment for which the lien is claimed, the unit owner shall be entitled to a fileable satisfaction of the lien.
Any grantee of a unit is entitled to a statement from the association or the executive board, setting forth the amount of unpaid assessments against the grantor and the grantee is not liable for, nor shall the unit conveyed be subject to a lien which is not filed under sub. (4)
for, any unpaid assessment against the grantor in excess of the amount set forth in the statement. If an association or a board of directors does not provide such a statement within 10 business days after the grantee's request, they are barred from claiming under any lien which is not filed under sub. (4)
prior to the request for the statement against the grantee.
(6) Priority of lien.
All sums assessed by an association but unpaid for the share of the common expenses chargeable to any unit constitutes a lien on the unit and on the undivided interest in the common elements appurtenant thereto prior to all other liens except:
All sums unpaid on a first mortgage recorded prior to the making of the assessment.
Mechanic's liens filed prior to the making of the assessment.
All sums unpaid on any mortgage loan made under s. 45.80
, 1989 stats.
(7) Interest on unpaid assessment.
Any assessment, or instalment thereof, not paid when due shall bear interest, at the option of the association, from the date when due until paid at a rate not exceeding the highest rate permitted by law as stated in the bylaws.
(8) Enforcement of lien.
A lien may be enforced and foreclosed by an association or any other person specified in the bylaws, in the same manner, and subject to the same requirements, as a foreclosure of mortgages on real property in this state. An association may recover costs and actual attorney fees. An association may, unless prohibited by the declaration, bid on the unit at foreclosure sale and acquire, hold, lease, mortgage and convey the unit. Suit to recover a money judgment for unpaid common expenses shall be maintainable without foreclosing or waiving the lien securing the same. Suit for any deficiency following foreclosure may be maintained in the same proceeding. No action may be brought to foreclose the lien unless brought within 3 years following the recording of the statement of condominium lien. No action may be brought to foreclose the lien except after 10 days' prior written notice to the unit owner given by registered mail, return receipt requested, to the address of the unit owner shown on the books of the association.
(9) Form of statement of condominium lien.
A statement of condominium lien is sufficient for the purposes of this chapter if it contains the following information and is substantially in the following form:
Statement of Condominium Lien
This is to certify that .................... owner(s) of unit No. ..... in .................... Condominium (is) (are) indebted to the association in the amount of $.......... as of .........., .... (year) for (his) (her) (its) (their) proportionate share of common expenses of the Condominium for the period from (date) to (date), plus interest thereon at the rate of ....%, costs of collection, and actual attorney fees.
Officer's title (or agent)
I hereby affirm under penalties of perjury that the information contained in the foregoing Statement of Condominium Lien is true and correct to the best of my knowledge, information, and belief.
Officer (or agent)
Condominium land contract recorded before making of assessment lien has priority as first mortgage under (6)(b). Towne Realty, Inc. v. Edwards, 156 W (2d) 344, 456 NW (2d) 651 (Ct. App. 1990).
The definition of "unit" under sub. (15) encompasses a property on which there is no constructed unit. Aluminium Industries v. Camelot Trails, 194 W (2d) 575, 535 NW (2d) 74 (Ct. App. 1995).
An association shall obtain insurance for the property against loss or damage by fire and such other hazards for not less than full replacement value of the property insured and a liability policy covering all claims commonly insured against. Insurance coverage shall be written on the property in the name of the association as trustee for each of the unit owners in the percentages established in the declaration. Premiums shall be common expenses. Provisions for such insurance shall be without prejudice to the right of each unit owner to insure his or her own unit for personal benefit.
Insurance proceeds shall first be disbursed by the trustees for the repair or restoration of the damaged common elements, and the unit owners and mortgagees shall not be entitled to receive payment of any portion of the insurance proceeds unless the association has determined not to rebuild, or the court has ordered partition of the condominium property, or there is a surplus of insurance proceeds after the common elements have been completely repaired or restored.
History: 1977 c. 407
; 1985 a. 332
Repair or reconstruction. 703.18(1)
A declaration shall provide for the repair or reconstruction of the common elements in the event of damage to all or part of the common elements of the condominium.
Unless otherwise provided in the declaration, in the event of damage to or destruction of common elements of a condominium, the association shall promptly undertake to repair or reconstruct it to a condition compatible with the remainder of the condominium. All cost of the repair or reconstruction in excess of available insurance proceeds shall be a common expense.
However, if a condominium is damaged to an extent more than the available insurance proceeds, the condominium shall be subject to an action for partition upon obtaining the written consent of the unit owners having 75% or more of the votes. In the case of partition, the net proceeds of sale together with any net proceeds of insurance shall be considered as one fund and shall be divided among all unit owners in proportion to their percentage interests in the common elements, and shall be distributed in accordance with the priority of interests in each unit.
History: 1977 c. 407
In this section, "taking under the power of eminent domain" includes any sale in settlement of any pending or threatened condemnation proceeding.