LRB-4832/1
PJK/PG/RPN:cjs:pg
2001 - 2002 LEGISLATURE
February 4, 2002 - Introduced by Joint Legislative Council. Referred to
Committee on Universities, Housing, and Government Operations.
SB412,2,2
1An Act to repeal 703.02 (1d), 703.255 and 703.38 (11);
to renumber 703.16 (2),
2703.275 (2), 703.33 (2) (b) (form) 1., 703.33 (3) and 709.02;
to renumber and
3amend 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),
5703.09 (1) (h), 703.09 (2), 703.11 (2) (c), 703.13 (5) (a), 703.13 (6) (c) and (d),
6703.15 (1), 703.15 (3) (b) 1., 703.15 (4) (d) 1., 703.19 (8), 703.27, 703.275 (1),
7703.33 (2) (intro.), 703.33 (2) (a) (form) 2., 703.33 (2) (a) (form) 3., 703.33 (2) (c),
8703.365 (title), (1), (2) and (3), 703.365 (4), (5), (6) (a) (intro.) and (c), (7) and (8)
9and 703.37;
to repeal and recreate 703.24; and
to create 703.08 (1) (a), (b)
10and (c), 703.08 (3), 703.09 (1f), 703.09 (1m), 703.09 (4), 703.093, 703.10 (2g),
11703.11 (5), 703.13 (5m), 703.13 (8), 703.15 (3) (b) 8., 703.155 (7), 703.16 (2) (b),
12703.161, 703.163, 703.165 (title) and (1), 703.195, 703.20 (3), 703.25 (4),
13703.265, 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),
1709.02 (2) and 823.015 of the statutes;
relating to: revisions and additions to
2condominium law.
Analysis by the Legislative Reference Bureau
This bill is explained in the Notes provided by the joint legislative council in
the bill.
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.
SB412, s. 1
3Section
1. 703.02 (1d) of the statutes is repealed.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.
SB412, s. 2
4Section
2. 703.02 (7) of the statutes is amended to read:
SB412,2,75
703.02
(7) "Declarant" means any owner who subjects his or her property to a
6condominium 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.
SB412, s. 3
8Section
3
. 703.02 (14m) of the statutes is amended to read:
SB412,2,109
703.02
(14m) "Small
residential condominium" means a condominium with no
10more 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.
SB412, s. 4
11Section
4. 703.06 of the statutes is amended to read:
SB412,3,5
1703.06 Alterations prohibited. Except as otherwise provided in this
2chapter, no unit owner may
do make any alteration
which that would jeopardize the
3soundness or safety of the property, reduce the value thereof,
or impair any easement
4or 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.
SB412, s. 5
6Section
5. 703.08 (1) of the statutes is renumbered 703.08 (1) (intro.) and
7amended to read:
SB412,3,148
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.
SB412, s. 6
15Section
6. 703.08 (1) (a), (b) and (c) of the statutes are created to read:
SB412,3,1616
703.08
(1) (a) The price at which the unit is being offered on the market.
SB412,3,1717
(b) The price contained in any accepted offer to purchase the unit.
SB412,3,1818
(c) The price otherwise agreed to by the tenant and the seller.
Note: See the Note to Sec. 7, below.
SB412, s. 7
19Section
7. 703.08 (2) (intro.) of the statutes is amended to read:
SB412,4,3
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.
SB412, s. 8
4Section
8
. 703.08 (3) of the statutes is created to read:
SB412,4,65
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.
SB412, s. 9
7Section
9. 703.09 (1) (g) of the statutes is amended to read:
SB412,4,118
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.
SB412, s. 10
12Section
10. 703.09 (1) (h) of the statutes is amended to read:
SB412,5,4
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.
SB412, s. 11
5Section
11. 703.09 (1) (k) of the statutes is renumbered 703.09 (1c) and
6amended to read:
SB412,5,107
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.
SB412, s. 12
11Section
12. 703.09 (1f) of the statutes is created to read:
SB412,6,212
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.
SB412, s. 13
3Section
13. 703.09 (1m) of the statutes is created to read:
SB412,6,64
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.
SB412,6,187
(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.
SB412,6,2119
(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.
SB412, s. 14
1Section
14. 703.09 (2) of the statutes is amended to read: