Note: Provides a measure of regulation relating to agreements, whether oral or
written, for the rental or lease of a residential condominium unit by the same tenant for
a period of more than one month and to periodic tenancies with a recurring interval of
time of one month or more.
Under sub. (2), a tenant who enters into a covered condominium rental agreement
or who is entitled to occupancy under a covered periodic tenancy agrees to comply with
ch. 703 (condominiums), the rules and bylaws of the association, and the provisions of the
declaration. By making agreement to comply a matter of law, failure of a tenant to comply
with the chapter, declaration, bylaws, or rules will trigger the provisions of ch. 704
(landlord and tenant) that relate to breach of a rental agreement or lease by a tenant.
Under sub. (3), if a written condominium rental agreement is entered into, the unit
owner must provide a copy within five business days to the association. The association
must keep a copy of the agreement on file while the agreement is in effect.
Subsection (4) provides a means of contacting or giving notice to a tenant or unit
owner who is party to a covered condominium rental agreement or periodic tenancy.
Contact or notice may be made or given by the means indicated by the tenant or unit
owner in writing to the association or, if that does not apply, by any method currently
provided under statutory landlord and tenant law for giving notice to a tenant or
landlord.
Subsection (5) provides that a unit owner must provide a copy of the declaration
and the association bylaws and rules to a covered tenant before the tenant occupies the
unit or must place the information in the unit before the tenant occupies the unit.
Under sub. (6), the section expressly does not apply to a time-share unit governed
under ch. 707. The inclusion of sub. (6) is not intended to affect or raise any inference
concerning the meaning of current s. 707.09, stats., relating to the relationship of ch. 703,
condominiums, and ch. 707, time shares.
Section 703.315, as created by this Section, first applies to condominium rental
agreements renewed or entered into approximately 3 months after the effective date of
the bill. See Sec. 69 (10) of the bill.
AB254, s. 49
1Section
49
. 703.33 (1) (h) of the statutes is created to read:
AB254,40,42
703.33
(1) (h) An executive summary setting forth in clear plain language the
3following information or location within the disclosure materials described in pars.
4(a) to (g) where the information may be found:
AB254,40,55
1. `Condominium identification.' The name of the condominium.
AB254,40,86
2. `Expansion plans.' A description of the declarant's expansion plan for the
7condominium and deadline for implementation and the identity of the condominium
8management during the expansion period.
AB254,40,129
3. `Governance.' The name and address of the condominium association;
10whether the association is self-managed or has hired or retained management; and
11the name, address, and telephone number of the individual or individuals who may
12be contacted regarding the condominium in general.
AB254,40,1513
4. `Special amenities.' A description of any special amenities, such as an
14athletic club or golf course, and a statement of the obligation of a unit owner to join
15or support the amenity.
AB254,40,1716
5. `Maintenance and repair of units.' A description of an owner's
17responsibilities for the repair and maintenance of the unit.
AB254,41,4
16. `Maintenance, repair, and replacement of common elements.' The identity
2of the person responsible for the maintenance, repair, and replacement of common
3elements and limited common elements and whether repairs or replacements will be
4funded from unit owner assessments, reserve funds, or both.
AB254,41,65
7. `Rental of units.' Whether unit owners may rent their units and any
6restrictions on rentals.
AB254,41,97
8. `Unit alterations.' A description of any rules, restrictions, or procedures
8governing a unit owner's authority to alter the unit or use or enclose limited common
9elements.
AB254,41,1010
9. `Parking.' A description of the availability, restrictions, and costs of parking.
AB254,41,1111
10. `Pets.' A description of rules relating to unit owners' pets.
AB254,41,1412
11. `Reserves.' Whether the association maintains reserves for repairs and
13replacement of common elements beyond routine maintenance and, if so, whether a
14statutory reserve account under s. 703.163 is maintained.
AB254,41,1615
12. `Other restrictions or features.' At the option of the declarant or association
16a description of other restrictions or features of the condominium.
Note: Sections 47 to 49 require an executive summary highlighting important
disclosure items to be included as the first document, following the index, in the
disclosure materials that must be furnished by a seller of a condominium unit to a buyer.
The executive summary is prepared and revised by the declarant or association,
whichever is in control of the condominium. The executive summary must contain the
following information, or indicate where the information may be found in the disclosure
materials:
1. The name of the condominium.
2. A description of the declarant's expansion plans for the condominium, if any, and
deadline for implementation.
3. Information identifying the condominium association and management
authority and the individual who may be contacted regarding the condominium.
4. A description of special amenities such as an athletic club or golf course and the
obligation of an owner to join or support the amenity.
5. A description of an owner's responsibilities relating to the repair and
maintenance of the unit.
6. The identity of the person responsible for the maintenance, repair, and
replacement of common elements and limited common elements and whether the repair
or replacement will be funded from unit owner assessments or reserve funds.
7. Whether unit owners may rent their units and any restrictions on rentals.
8. A description of any rules, restrictions, or procedures governing a unit owner's
authority to alter the unit or use or enclose limited common elements.
9. A description of the availability, restrictions, and costs of parking.
10. A description of rules relating to unit owners' pets.
11. Whether reserves are maintained by the association and, if so, whether a
statutory reserve account is maintained.
12. At the option of the declarant or association of unit owners, a description of
other restrictions or features of the condominium.
See Sec. 69 (11) for the delayed applicability of the executive summary
requirement.
AB254, s. 50
1Section
50. 703.33 (1m) of the statutes is created to read:
AB254,42,72
703.33
(1m) Preparation of executive summary. The executive summary
3under sub. (1) (h) shall be prepared, and subsequently revised whenever a change
4is made in the disclosure materials described in sub. (1) (a) to (g) that requires a
5revision of a statement in the summary, by the declarant or the association,
6whichever is in control of the condominium when the executive summary is prepared
7or revised.
Note: Imposes an obligation on the declarant or association to prepare the
executive summary and to revise it consistent with changes in the required disclosure
materials.
AB254, s. 51
8Section
51
. 703.33 (2) (intro.) of the statutes is amended to read:
AB254,42,149
703.33
(2) Disclosure form. (intro.) The materials required in sub. (1) shall
10be delivered to a prospective purchaser with cover sheet, index
, and tables of contents
11as prescribed in this section. A cover sheet and index shall precede all other
12materials required in sub. (1).
The executive summary required under sub. (1) (h)
13shall appear immediately following the index. A table of contents shall precede the
14section to which it applies.
Note: Specifies the location of the executive summary: immediately following the
index at the beginning of the disclosure materials.
AB254, s. 52
15Section
52. 703.33 (2) (a) (form) 2. of the statutes is amended to read:
AB254,43,516
703.33
(2) (a) (form) 2. THESE DISCLOSURE MATERIALS GIVEN TO YOU
17AS REQUIRED BY LAW MAY
, WITH THE EXCEPTION OF THE EXECUTIVE
1SUMMARY, BE RELIED UPON AS CORRECT AND BINDING.
FOR A
2COMPLETE UNDERSTANDING OF THE EXECUTIVE SUMMARY, CONSULT
3THE DISCLOSURE DOCUMENTS TO WHICH A PARTICULAR EXECUTIVE
4SUMMARY STATEMENT PERTAINS. ORAL STATEMENTS MAY NOT BE
5LEGALLY BINDING.
AB254, s. 53
6Section
53. 703.33 (2) (a) (form) 3. of the statutes is amended to read:
AB254,43,197
703.33
(2) (a) (form) 3. YOU MAY AT ANY TIME WITHIN 5 BUSINESS DAYS
8FOLLOWING RECEIPT OF THESE DOCUMENTS, OR FOLLOWING NOTICE
9OF ANY MATERIAL CHANGES IN THESE DOCUMENTS, CANCEL IN
10WRITING THE CONTRACT OF SALE AND RECEIVE A FULL REFUND OF ANY
11DEPOSITS MADE.
IF THE SELLER DELIVERS LESS THAN ALL OF THE
12DOCUMENTS REQUIRED, YOU MAY, WITHIN 5 BUSINESS DAYS
13FOLLOWING RECEIPT OF THE DOCUMENTS, DELIVER A REQUEST FOR
14ANY MISSING DOCUMENTS. IF YOU TIMELY DELIVER A REQUEST FOR
15MISSING DOCUMENTS, YOU MAY, AT ANY TIME WITHIN 5 BUSINESS DAYS
16FOLLOWING THE EARLIER OF EITHER THE RECEIPT OF THE REQUESTED
17DOCUMENTS OR THE SELLER'S DEADLINE TO DELIVER THE REQUESTED
18DOCUMENTS, CANCEL IN WRITING THE CONTRACT OF SALE AND
19RECEIVE A FULL REFUND OF ANY DEPOSITS MADE.
Note: Sections 50 and 51 revise 2 of the disclosure statements that must appear
in bold face type and capital letters on the cover sheet of the disclosure form given to a
prospective purchaser of a condominium unit to indicate: (1) that the executive summary
(when required; see Sec. 69 (11) of the bill) may not be relied upon as correct and binding
and that the purchaser should consult the disclosure documents to which a particular
executive summary statement pertains; and (2) that a buyer may request missing
disclosure documents within 5 business days following receipt of the other documents and
that, if a request is made, the 5-day cancellation period does not start to run until the
earlier of the receipt of any missing documents that have been requested by the purchaser
or the seller's deadline for delivery of the missing documents. (See
Secs. 56 and 58 of the
bill.)
AB254, s. 54
1Section
54. 703.33 (2) (b) (form) 1. of the statutes is renumbered 703.33 (2) (b)
2(form) 1m.
AB254, s. 55
3Section
55. 703.33 (2) (b) (form) 1c. of the statutes is created to read:
AB254,44,64
703.33
(2) (b) (form) 1c.
Executive summary. The executive summary
5highlights for a buyer of a condominium unit essential information regarding the
6condominium. The executive summary begins on page . . . .
Note: Places the executive summary required under this bill first in the list of
items included in the index of disclosure materials that follows the cover sheet to the
disclosure materials.
AB254, s. 56
7Section
56. 703.33 (2) (c) of the statutes is amended to read:
AB254,44,228
703.33
(2) (c)
Tables of contents and page numbers. In addition to an index
9required by par. (b),
there shall be provided tables of contents for the declaration
, and 10bylaws
and articles of incorporation which shall identify shall be provided,
11identifying each section of these documents and
provide providing a page number for
12each section. Each section of disclosure material required in sub. (1) shall, on the first
13page of that material, identify contents of that section but, with
an the exception of
14the declaration
, and bylaws
and articles of incorporation, shall, is not
be required to
15have a table of contents.
Each page of disclosure materials shall contain a page
16number sufficient to identify it within the body of disclosure materials. Page
17numbers for the declaration, bylaws and articles of incorporation required in par. (b)
18shall be the first page of the table of contents for that section. All other page numbers
19required in the index shall refer to the first page of that section on which the title
20appears Each section of disclosure material shall be separately identified by a letter,
21tab, or number. Pages within each section shall be consecutively numbered with an
22indication of the section as part of the pagination.
Note: Clarifies that the entire body of disclosure materials furnished to
purchasers of residential units need not be consecutively paginated by providing that the
consecutive pagination requirement only applies to each section within the body of
disclosure materials. Removes the requirement of a table of contents for the articles of
incorporation. Also makes editorial changes.
AB254, s. 57
1Section
57. 703.33 (3) of the statutes is renumbered 703.33 (3m).
AB254, s. 58
2Section
58
. 703.33 (3c) of the statutes is created to read:
AB254,45,113
703.33
(3c) Delivery of incomplete set of disclosure materials. If the seller
4delivers disclosure materials that include the cover sheet required in sub. (2) (a), but
5that do not include all of the documents required under sub. (1), the purchaser may,
6within 5 business days from receipt of the disclosure materials, request any
7documents that were required to be delivered under sub. (1), but that were not timely
8delivered. If no executive summary required under subs. (1) (h) and (1m) has been
9prepared, the seller may so inform the purchaser when the seller delivers the
10disclosure materials to the seller. The seller has 5 business days following receipt
11of the purchaser's request to deliver the requested documents to the purchaser.
Note: Authorizes the purchaser to request any documents that are not included
in the disclosure materials within 5 business days of receipt of the materials. The seller
has 5 business days following receipt of the request to deliver the requested documents.
See, also, Sec. 58 of the bill.
AB254, s. 59
12Section
59. 703.33 (4) of the statutes is renumbered 703.33 (4) (a) and
13amended to read:
AB254,45,1914
703.33
(4) (a) Any purchaser may at any time within 5 business days following
15receipt of all
information of the documents required under sub. (1) and within 5
16business days following receipt of all
information
of the amendments required under
17sub.
(3) (3m), rescind in writing a contract of sale without stating any reason and
18without any liability on his or her part
, and the purchaser is entitled to the return
19of any deposits made in account of the contract.
AB254, s. 60
20Section
60
. 703.33 (4) (b) and (c) of the statutes are created to read:
AB254,46,4
1703.33
(4) (b) If the disclosure materials delivered by the seller do not include
2all the documents required under sub. (1), the purchaser may rescind in writing a
3contract of sale without stating any reason and without any liability on his or her
4part as follows:
AB254,46,75
1. If the purchaser does not give notice requesting missing documents under
6sub. (3c), the purchaser may rescind within 5 business days following receipt of the
7incomplete disclosure materials.
AB254,46,118
2. If the purchaser gives notice requesting missing documents under sub. (3c),
9the purchaser may rescind within 5 business days following the earlier of receipt of
10the requested documents or the deadline, under sub. (3c), for the seller's delivery of
11the requested missing documents.
AB254,46,1312
(c) A purchaser who timely rescinds under par. (a) or (b) is entitled to the return
13of any deposits made under the contract.
Note: Provides that the purchaser's 5-day cancellation period does not start to run
until the earlier of the receipt of any missing disclosure documents that have been
requested by the purchaser or 5 business days following the receipt by the seller of a
request for the missing documents.
AB254, s. 61
14Section
61
. 703.365 (title), (1), (2) and (3) of the statutes are amended to read:
AB254,46,15
15703.365 (title)
Small residential condominiums.
AB254,46,18
16(1) Applicability. (a) The declaration for a small
residential condominium may
17provide that any or all of subs. (2) to (8) or any parts of those subsections apply to the
18small
residential condominium.
Note: Revises a defined term to reflect the revision of that term by Sec. 3 of the
bill. See the Note to that Section. This change is made throughout provisions of s.
703.365, relating to small condominiums.
AB254,47,219
(b) If a declaration under par. (a) provides that any or all of subs. (2) to (8) or
20any parts of those subsections apply, then, except as provided in those subsections
1or parts of those subsections, this chapter applies to the small
residential 2condominium in the same manner and to the same extent as to other condominiums.
AB254,47,4
3(2) Declaration. (a) The declaration for a small
residential condominium need
4not contain those provisions otherwise required under s. 703.09 (1) (e) to (g) and (i).
AB254,47,65
(b) The undivided percentage interest in a small
residential condominium
shall
6be is allocated equally among the units.
AB254,47,87
(c) Each unit in a small
residential condominium
shall have has one vote at
8meetings of the association.
AB254,47,129
(d) Commercial activity is permitted in a small
residential condominium
that
10consists solely of units restricted to residential uses only to the extent that
11commercial activity is permitted in residences in a zoning ordinance adopted under
12s. 59.69, 60.61, 61.35
, or 62.23.
Note: Revised to reflect the revised defined term and the change in substance of
that term.
AB254,47,1613
(e) All actions taken under this chapter
which that require a vote of units or
14unit owners must be approved by an affirmative vote or written consent of at least
1575% of the unit votes of a small
residential condominium, or a greater percentage if
16required by the declaration or this chapter.
AB254,47,21
17(3) Bylaws. (a) Notwithstanding s. 703.10 (2) (a), all aspects of the
18management, operation
, and duties of the association of a small
residential 19condominium shall be delegated to the board of directors, which may retain a
20manager
, including a master association under s. 703.155, for the small
residential 21condominium, and the bylaws shall so specify.
Note: Expressly allows a small condominium to utilize a master association.
AB254,48,3
1(b) Under s. 703.10 (2) (c), notice of meetings shall be given in a manner best
2calculated to assure that actual notice is received by the owners of all units of a small
3residential condominium, and the bylaws shall so specify.
AB254,48,64
(c) Section 703.10 (2) (d) does not apply to a small
residential condominium.
5The board of directors shall be composed of one representative from each unit, chosen
6by and from among the unit owners of that unit.
AB254,48,97
(d) All actions taken by the board of directors of a small
residential 8condominium under this chapter must be approved by an affirmative vote or written
9consent of at least 75% of the board.
AB254,48,1010
(e) Section 703.10 (4) does not apply to a small
residential condominium.
AB254, s. 62
11Section
62. 703.365 (3m) of the statutes is created to read:
AB254,48,1712
703.365
(3m) Agreement in lieu of bylaws. If approved by written consent of
13all of the unit votes of a small condominium, an agreement may be substituted for
14the bylaws under sub. (3). The terms of the agreement shall include the
15requirements of sub. (3) (a) to (d) and shall be consistent with this section. An
16amendment to an agreement may be made with the affirmative vote or written
17consent of all the unit votes of the small condominium.
Note: Authorizes a small condominium, if approved by written consent of all of the
unit votes, to substitute an agreement for the bylaws. The terms of the agreement must
include the requirements of current s. 703.365 (3) and must otherwise be consistent with
s. 703.365. An amendment to an agreement may be made with affirmative vote or written
consent of all of the unit votes of the small condominium. Compare ss. 180.1823 and
180.1825, stats., relating to agreements in place of bylaws for statutory close
corporations.
AB254, s. 63
18Section
63
. 703.365 (4), (5), (6) (a) (intro.) and (c), (7) and (8) of the statutes
19are amended to read:
AB254,49,3
1703.365
(4) Condominium plat. (a) The survey under s. 703.11 (2) (b) shall be
2an as-built survey of the property described in the declaration, building
, and other
3improvements on the land
which that are part of the small
residential condominium.
AB254,49,94
(b) The floor plans under s. 703.11 (2) (c) need only show the location and
5designation of each unit in the building and the limited common elements
6appurtenant to each unit of a small
residential condominium. These plans may be
7supplemented by an agreement among all unit owners and mortgagees regarding the
8allocation of use and enjoyment of common elements
, which
agreement, in both its
9original and any amended form, shall be recorded.
AB254,49,12
10(5) Association. (a) Under s. 703.15 (2), an association shall exist immediately
11upon establishment of a small
residential condominium and the declarant shall have
12rights in the association only as an owner of a unit or units.