AB254: Bill Text

LRB-1965/1

MJL/PG/RPN:cs:rs

2003 - 2004 LEGISLATURE

2003 Assembly BILL 254

April 8, 2003 - Introduced by Joint Legislative Council. Referred to Committee on Housing.

AB254,2,3 An Act to repeal 703.02 (1d), 703.255 and 703.38 (11); to renumber 703.16 (2), 703.275 (2) (intro.) (except 703.275 (2) (title))of the statutes, 703.275 (2) (a), 703.275 (2) (b), 703.33 (2) (b) (form) 1., 703.33 (3) and 709.02; to renumber and amend 703.08 (1), 703.09 (1) (k), 703.16 (3) to (9), 703.33 (4) and 703.38 (10); to amend 703.02 (7), 703.02 (14m), 703.06, 703.08 (2) (intro.), 703.09 (1) (g), 703.09 (1) (h), 703.09 (2), 703.11 (2) (c), 703.13 (5) (a), 703.13 (6) (c) and (d), 703.15 (1), 703.15 (3) (b) 1., 703.15 (4) (d) 1., 703.19 (8), 703.27, 703.275 (1), 703.33 (2) (intro.), 703.33 (2) (a) (form) 2., 703.33 (2) (a) (form) 3., 703.33 (2) (c), 703.365 (title), (1), (2) and (3), 703.365 (4), (5), (6) (a) (intro.) and (c), (7) and (8) and 703.37; to repeal and recreate 703.24; and to create 703.08 (1) (a), (b) and (c), 703.08 (3), 703.09 (1f), 703.09 (1m), 703.09 (4), 703.093, 703.10 (2g), 703.11 (5), 703.13 (5m), 703.13 (8), 703.15 (3) (b) 8., 703.155 (7), 703.16 (2) (b), 703.161, 703.163, 703.165 (title) and (1), 703.195, 703.20 (3), 703.25 (4), 703.265, 703.275 (2) (ac), 703.315, 703.33 (1) (h), 703.33 (1m), 703.33 (2) (b) (form) 1c., 703.33 (3c), 703.33 (4) (b) and (c), 703.365 (3m), 703.38 (10) (b), 709.02 (2) and 823.015 of the statutes; relating to: revisions and additions to condominium 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.

AB254, s. 1 Section 1. 703.02 (1d) of the statutes is repealed.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.

AB254, s. 2 Section 2. 703.02 (7) of the statutes is amended to read:

AB254,2,8 703.02 (7) "Declarant" means any owner who subjects his or her property to a condominium declaration established under this chapter. The term includes an assignee 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.

AB254, s. 3 Section 3 . 703.02 (14m) of the statutes is amended to read:

AB254,2,11 703.02 (14m) "Small residential condominium" means a condominium with no more 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.

AB254, s. 4 Section 4. 703.06 of the statutes is amended to read:

AB254,3,6 703.06 Alterations prohibited. Except as otherwise provided in this chapter, no unit owner may do make any alteration which that would jeopardize the soundness or safety of the property, reduce the value thereof, or impair any easement or hereditament, or change the exterior appearance of a unit or any other portion of the 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.

AB254, s. 5 Section 5. 703.08 (1) of the statutes is renumbered 703.08 (1) (intro.) and amended to read:

AB254,3,15 703.08 (1) (intro.) Residential real property may not be converted to a condominium unless the owner of the residential real property gives 120 days' prior written notice of the conversion to each of the tenants of the building or buildings scheduled for conversion. A tenant has the exclusive option to purchase the unit for a During the 60-day period of 60 days immediately following the date of delivery of the notice a tenant has the first right to purchase the unit, if the unit is offered for sale at any time during that period, for any of the following:

Note: See the Note to Sec. 7, below.

AB254, s. 6 Section 6. 703.08 (1) (a), (b) and (c) of the statutes are created to read:

AB254,3,17 703.08 (1) (a) The price at which the unit is being offered on the market.

AB254,3,18 (b) The price contained in any accepted offer to purchase the unit.

AB254,3,19 (c) The price otherwise agreed to by the tenant and the seller.

Note: See the Note to Sec. 7, below.

AB254, s. 7 Section 7. 703.08 (2) (intro.) of the statutes is amended to read:

AB254,4,3 703.08 (2) (intro.) A tenant may not be required to vacate the property during the 120-day period immediately following the date of delivery of the notice required under 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.

AB254, s. 8 Section 8 . 703.08 (3) of the statutes is created to read:

AB254,4,6 703.08 (3) A tenant may waive in writing his or her first right of purchase under sub. (1), his or her right to remain on the property under sub. (2), or both.

Note: See the Note to Sec. 7, above.

AB254, s. 9 Section 9. 703.09 (1) (g) of the statutes is amended to read:

AB254,4,11 703.09 (1) (g) Statement of the purposes for which the building and each of the units are intended and restricted as to use, including any requirement applicable to or restriction on the rental of residential units or reference to any such requirement or 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.

AB254, s. 10 Section 10. 703.09 (1) (h) of the statutes is amended to read:

AB254,5,2 703.09 (1) (h) The name of the person to receive service of process in the cases provided in this chapter, together with the and address of that person and the method by which the association may designate a successor to the person the resident agent under 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.

AB254, s. 11 Section 11. 703.09 (1) (k) of the statutes is renumbered 703.09 (1c) and amended to read:

AB254,5,8 703.09 (1c) A condominium declaration shall be signed by the owners of the property and any first mortgagee of the property or the holder of an equivalent security interest in the property in the same manner as required in conveyances of real 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.

AB254, s. 12 Section 12. 703.09 (1f) of the statutes is created to read:

AB254,5,18 703.09 (1f) A condominium declaration may provide for mandatory arbitration under ch. 788 of disputes arising out of the declaration, bylaws, or rules involving the interests of the declarant, unit owners, association, or board of directors. A mandatory arbitration provision in a declaration constitutes a written agreement between or among the declarant, association, and board to submit to arbitration a dispute covered by the arbitration provision in the declaration. Acceptance of a conveyance of a condominium unit constitutes an agreement by the unit owner to submit to arbitration a dispute covered by an arbitration provision that is included in the declaration at the time of the conveyance.