AB647, s. 74
24Section
74. 703.16 (1) of the statutes is amended to read:
AB647,27,8
1703.16
(1) Disposition of common surpluses. All common surpluses of the
2association
shall be credited to the unit owners' assessments for common expenses 3may be used by the association in the manner determined by the association. If
4surpluses are credited or distributed to the unit owners, they shall be allocated
5among the unit owners as provided in the declaration or, if there is no applicable
6provision in the declaration, in proportion to their percentage interests in the
7common elements
or as otherwise provided in the declaration or shall be used for any
8other purpose as the association decides.
AB647, s. 75
9Section
75. 703.16 (2) (b) of the statutes is amended to read:
AB647,27,1710
703.16
(2) (b) During
the period of declarant control of the association under
11s. 703.15 (2) (c), if any period in which any unit owned by the declarant is exempt from
12assessments for common expenses until the unit is sold, the total amount assessed
13against units that are not exempt from assessments may not exceed the amount that
14equals nonexempt units' budgeted share of common expenses, based on the
15anticipated common expenses set forth in the annual budget under s. 703.161 (2) (a).
16The declarant is liable for the balance of the actual common expenses.
Declarant
17obligations under this paragraph shall be considered assessments under s. 703.165.
AB647, s. 76
18Section
76. 703.161 (2) (intro.) of the statutes is amended to read:
AB647,27,2119
703.161
(2) Requirement. (intro.) An association annually shall adopt and
20distribute to
all unit owners each unit owner an annual budget setting forth all of the
21following:
AB647, s. 77
22Section
77. 703.161 (2) (g) of the statutes is created to read:
AB647,27,2323
703.161
(2) (g) The amount assessed to the owner's unit.
AB647, s. 78
24Section
78. 703.161 (3) of the statutes is created to read:
AB647,28,3
1703.161
(3) Amendment. An association may adopt amendments to its budget
2during the course of its fiscal year, and shall use the same procedures and actions as
3are required for adoption of the original budget.
AB647, s. 79
4Section
79. 703.165 (2) of the statutes is amended to read:
AB647,28,175
703.165
(2) Liability for assessments. A unit owner shall be liable for all
6assessments, or installments thereof, coming due while owning a unit, including any
7assessments coming due during the pendency of any claim by the unit owner against
8the association or during any period in which the unit is not occupied by the unit
9owner or is leased or rented to any other person. In
a voluntary any grant,
other than
10one resulting from the foreclosure of a first mortgage on the unit, the grantee shall
11be jointly and severally liable with the grantor for all unpaid assessments against
12the grantor for his or her share of the common expenses up to the time of the
13voluntary grant for which a statement of condominium lien is
recorded filed, without
14prejudice to the rights of the grantee to recover from the grantor the amounts paid
15by the grantee for such assessments. Liability for assessments may not be avoided
16by waiver of the use or enjoyment of any common element or by abandonment of the
17unit for which the assessments are made.
AB647, s. 80
18Section
80. 703.165 (3) of the statutes is amended to read:
AB647,29,819
703.165
(3) Assessments constitute lien. All assessments, until paid,
20together with interest on them and actual costs of collection, constitute a lien on the
21units on which they are assessed, if a statement of lien is filed within
2 3 years after
22the date the
last installment of the assessment becomes due. The lien is effective
23against a unit at the time the
last installment of the assessment became due
24regardless of when within the
2-year 3-year period it is filed. A statement of
25condominium lien is filed in the land records of the clerk of circuit court of the county
1where the unit is located, stating the description of the unit, the name of the record
2owner, the amount due
, and the period for which the assessment was due. The clerk
3of circuit court shall index the statement of condominium lien under the name of the
4record owner in the judgment and lien docket. The statement of condominium lien
5shall be signed and verified by an officer or agent of the association as specified in
6the bylaws and then may be filed. On full payment of the
amount of the assessment
7for which the lien is claimed, the unit owner shall be entitled to a satisfaction of the
8lien that may be filed with the clerk of circuit court.
AB647, s. 81
9Section
81. 703.165 (5) (c) of the statutes is amended to read:
AB647,29,1110
703.165
(5) (c)
Mechanic's Construction liens filed prior to the making of the
11assessment.
AB647, s. 82
12Section
82. 703.165 (7) of the statutes is amended to read:
AB647,30,213
703.165
(7) Enforcement of lien. A lien may be enforced and foreclosed by an
14association or any other person specified in the bylaws, in the same manner, and
15subject to the same requirements, as a foreclosure of mortgages on real property in
16this state
, including the redemption time reductions under s. 846.101 for waiving a
17deficiency judgment. An association may recover costs and actual attorney fees. An
18association may, unless prohibited by the declaration, bid on the unit at foreclosure
19sale and acquire, hold, lease, mortgage
, and convey the unit. Suit to recover a money
20judgment for unpaid common expenses shall be maintainable without foreclosing or
21waiving the lien securing the same. Suit for any deficiency following foreclosure may
22be maintained in the same proceeding. No action may be brought to foreclose the lien
23unless brought within 3 years following the
recording
filing of the statement of
24condominium lien. No action may be brought to foreclose the lien except after 10
1days' prior written notice to the unit owner given by registered mail, return receipt
2requested, to the address of the unit owner shown on the books of the association.
AB647, s. 83
3Section
83. 703.17 (1) of the statutes is amended to read:
AB647,30,164
703.17
(1) An Unless otherwise provided in the declaration, an association
5shall obtain insurance for the property against loss or damage by fire and such other
6hazards for not less than full replacement value of the property insured and a
7liability policy covering all claims commonly insured against. Insurance coverage
8shall be written on the property in the name of the association as trustee for each of
9the unit owners in the percentages established in the declaration.
The declaration
10may establish an allocation of insurance proceeds that differs from the percentage
11interest in the common elements established under s. 703.13 (1). Premiums shall be
12common expenses.
The insurance may include reasonable deductibles, and, if it
13does, the association shall determine by bylaw or rule whether a deductible shall be
14paid as a common expense or, if not, how it will be allocated. Provisions for such
15insurance shall be without prejudice to the right of each unit owner to insure his or
16her own unit for personal benefit.
AB647, s. 84
17Section
84. 703.18 (2) (b) of the statutes is amended to read:
AB647,31,218
703.18
(2) (b) However, if a condominium is damaged to an extent more than
19the available insurance proceeds, the condominium shall be subject to an action for
20partition upon obtaining the written consent of the unit owners having
75% 75
21percent or more of the votes. In the case of partition, the net proceeds of sale together
22with any net proceeds of insurance shall be considered as one fund and shall be
23divided among all unit owners in proportion to their percentage interests in the
24common elements
as established under s. 703.13 (1) or, if the declaration so provides,
1in an allocation that differs from the percentage interests in the common elements,
2and shall be distributed in accordance with the priority of interests in each unit.
AB647, s. 85
3Section
85. 703.19 (3) (intro.) of the statutes is amended to read:
AB647,31,74
703.19
(3) Allocation of award; in absence of provisions in declaration or
5bylaws. (intro.) Unless otherwise provided for in a declaration or bylaws, any
6damages for a taking of all or part of a condominium shall
, subject to sub. (6), be
7awarded as follows:
AB647, s. 86
8Section
86. 703.19 (3) (b) of the statutes is amended to read:
AB647,31,139
703.19
(3) (b) Any award for the taking of limited common elements shall be
10allocated to the unit owners of the units to which the use of those limited common
11elements is restricted in proportion to their respective percentage interests in the
12common elements
as established under s. 703.13 (1) or, if the declaration so provides,
13in an allocation that differs from the percentage interests in the common elements.
AB647, s. 87
14Section
87. 703.19 (3) (c) of the statutes is amended to read:
AB647,31,1915
703.19
(3) (c) In the event no reconstruction is undertaken, any award for the
16taking of common elements shall be allocated to all unit owners in proportion to their
17respective percentage interests in the common elements
as established under s.
18703.13 (1) or, if the declaration so provides, in an allocation that differs from the
19percentage interests in the common elements.
AB647, s. 88
20Section
88. 703.20 (1) of the statutes is amended to read:
AB647,32,221
703.20
(1) Record keeping; availability for examination. An association shall
22keep detailed, accurate records using standard bookkeeping procedures of the
23receipts and expenditures affecting the common elements, specifying and itemizing
24the maintenance and repair expenses of the common elements and any other
25expenses incurred.
The records, wherever maintained, are the property of the
1association. The records and the vouchers authorizing the payments shall be
2available for examination by the unit owners at convenient hours.
AB647, s. 89
3Section
89. 703.22 (title) of the statutes is amended to read:
AB647,32,4
4703.22 (title)
Mechanics'
Construction and suppliers' liens.
AB647, s. 90
5Section
90. 703.22 (2) of the statutes is amended to read:
AB647,32,86
703.22
(2) Any
mechanics' construction lien or suppliers' lien under subch. I
7of ch. 779 arising as a result of repairs to or improvements of a unit by a unit owner
8shall be a lien only against the unit.
AB647, s. 91
9Section
91. 703.22 (3) of the statutes is amended to read:
AB647,32,1810
703.22
(3) Any
mechanics' construction or suppliers' lien under subch. I of ch.
11779 arising as a result of repairs to or improvements of the common elements, if
12authorized in writing by the association, shall be paid by the association as a common
13expense and until paid shall be a lien against each unit in proportion to its percentage
14interest in the common elements. On payment of the proportionate amount by any
15unit owner to the lienor or on the filing of a written undertaking in the manner
16specified by s. 779.08, the unit owner shall be entitled to a release of his or her unit
17from the lien and the association shall not be entitled to assess his or her unit for
18payment of the remaining amount due for the repairs or improvements.
AB647, s. 92
19Section
92. 703.24 (2) of the statutes is amended to read:
AB647,32,2320
703.24
(2) Liability for unit owner violation. A unit owner who commits a
21violation is liable for any charges, fines, or assessments imposed by the association
22pursuant to the
declaration or the association's bylaws or
association rules as a result
23of the violation and may be subject to a temporary or permanent injunction.
AB647, s. 93
24Section
93. 703.25 (3) of the statutes is renumbered 703.25 (3) (a) and
25amended to read:
AB647,33,6
1703.25
(3) (a) A judgment for money
or a blanket lien under s. 703.22 against
2an association shall be a lien against any property owned by the association, and
3against each of the condominium units in proportion to the liability of each unit
4owner for common expenses as established under the declaration in an amount not
5exceeding the market value of the unit, but not against any other property of any unit
6owner.
AB647, s. 94
7Section
94. 703.25 (3) (b) of the statutes is created to read:
AB647,33,98
703.25
(3) (b) An action for a money judgment against an association shall not
9be the basis for filing a lis pendens against the units of the condominium.
AB647, s. 95
10Section
95. 703.26 (1) of the statutes is amended to read:
AB647,33,1911
703.26
(1) Declarant
Declaration may reserve
include right to expand. A
12declarant may reserve
in the
original declaration of a condominium a right to expand
13 a the condominium by
subjecting additional property to the condominium
14declaration adding land, one or more units, or both, in such a manner that
as each
15additional property any added land or unit is subjected to the condominium
16declaration
and, if any unit or units are added, the percentage of undivided interests
17in the common elements
of the preceding and new property shall be are reallocated
18between the unit owners on the basis of the aggregate undivided interest in the
19common elements appertaining to the property among all units.
AB647, s. 96
20Section
96. 703.26 (2) (a) of the statutes is amended to read:
AB647,33,2321
703.26
(2) (a) A declaration establishing a condominium shall describe each
22parcel of property
which, along with its square footage, that may be added to the
23condominium.
AB647, s. 97
24Section
97. 703.26 (3) (a) of the statutes is amended to read:
AB647,34,7
1703.26
(3) (a) If the conditions of sub. (2) are complied with, property may be
2added to a condominium if the declarant records an amendment to the declaration,
3showing
the designation of the units being added, the new percentage interests of the
4unit owners, and the votes
which that each unit owner may cast in the condominium
5as expanded, and records an addendum to the condominium plat that includes the
6detail and information concerning the new property as required in the original
7condominium plat.
AB647, s. 98
8Section
98. 703.275 (4m) of the statutes is created to read:
AB647,34,159
703.275
(4m) Plat. The plat of the resultant condominium shall be titled as
10an addendum to the plat of that condominium, shall identify the plat of every
11condominium that is merged into the resultant condominium by name and recording
12data, and shall identify units both by their designations in the resultant
13condominium and by their designations in the merged condominiums. Any changes
14in the common elements, including the reservation of parts of them as limited
15common elements, shall be identified on the plat of the resultant condominium.
AB647, s. 99
16Section
99. 703.28 (1) of the statutes is amended to read:
AB647,34,2317
703.28
(1) All
of the unit owners may remove all or any part of the property
may
18be removed from the provisions of this chapter by a removal instrument, duly
19recorded
, provided that the holders of all liens affecting any of the units consent
20thereto or agree, in either case by instruments duly recorded, that their liens be
21transferred to the percentage of the undivided interest of the unit owner in the
22property as an amendment to the declaration, as provided in this section, and as an
23addendum to the plat.
AB647, s. 100
24Section
100. 703.28 (1m) of the statutes is repealed.
AB647, s. 101
25Section
101. 703.28 (2) of the statutes is repealed.
AB647, s. 102
1Section
102. 703.28 (2m) of the statutes is created to read:
AB647,35,102
703.28
(2m) If all of the property is being removed, the removal instrument
3must be approved by all of the unit owners and consented to by the holders of all liens
4affecting the condominium or any unit. The removal instrument shall provide that
5any lien against a unit is transferred to the percentage interest of the owner of the
6unit that is encumbered by the lien and that any lien against the condominium as
7a whole is allocated among the units in accordance with s. 703.25 (3). Upon removal
8of the property from the provisions of this chapter, the property shall be owned in
9common by the unit owners. The percentage interest of each unit owner shall be
10determined as specified in the declaration.
AB647, s. 103
11Section
103. 703.28 (3) of the statutes is created to read:
AB647,35,1312
703.28
(3) If less than all of the property is being removed, all of the following
13apply:
AB647,35,1514
(a) If the removal results from the exercise of the power of eminent domain, s.
15703.195 applies.
AB647,35,1716
(b) 1. Except as provided in par. (c), the removal instrument must specify all
17of the following:
AB647,35,1818
a. The part of the property that is being removed.
AB647,35,2519
b. Who will own the part of the property that is being removed after its removal.
20If the property is to be owned differently from the manner in which it was owned
21immediately before removal, the removal instrument shall contain language of
22conveyance to the party or parties that will own the property after removal. The
23conveyance language shall be effective to vest ownership in the party or parties even
24if fewer than all of the unit owners of the condominium have joined in the removal
25instrument.
AB647,36,2
1c. The consideration, if any, that is being given to the association for the
2removal.
AB647,36,73
2. A removal instrument under this paragraph must be signed by the unit
4owners holding at least 80 percent of the aggregate of the votes established under s.
5703.09 (1) (f), or a greater percentage if so provided in the declaration, including all
6of the owners of units that are being removed, and consented to by the holders of all
7liens affecting the condominium or any unit.
AB647,36,108
3. Removal of less than all of the property is permitted only if, following
9removal, the condominium and the property removed are in compliance with the
10laws and ordinances regulating zoning and land division.
AB647,36,1411
4. At the time a removal instrument under this paragraph is recorded, the
12party recording the instrument shall also record an addendum to the condominium
13plat containing the same details and information concerning the remaining
14condominium property as was required in the original condominium plat.
AB647,36,1815
(c) If the part being removed does not include all of a unit, all of a limited
16common element, or a part of the common elements that is essential to the use and
17enjoyment of or access to any unit, the removal instrument must specify all of the
18following:
AB647,36,1919
1. The part of the property that is being removed.
AB647,36,2020
2. Who will own the part of the property that is being removed after its removal.
AB647,36,2221
3. The consideration received for the property being removed and how the
22consideration will be used.
AB647,37,223
(d) If the property that is being removed is owned by the association and is not
24any part of a unit or the common elements, its transfer shall be as provided in the
1declaration or association bylaws and shall not affect the percentage interests in the
2common elements.
AB647, s. 104
3Section
104. 703.28 (4) of the statutes is created to read:
AB647,37,84
703.28
(4) A removal instrument under sub. (3) (b) or (c) must meet the
5requirements for an amendment to the declaration. An amendment to the
6declaration and an addendum to the condominium plat must be recorded to reflect
7the removal. The part that is removed must result in a legal parcel for its intended
8use.
AB647, s. 106
10Section
106. 703.33 (1) (intro.) of the statutes is amended to read:
AB647,37,1311
703.33
(1) Material to be furnished by seller to purchaser before closing. 12(intro.) Not later than 15 days prior to the closing of the sale of a
residential unit to
13a member of the public, the seller shall furnish to the purchaser the following:
AB647, s. 107
14Section
107. 703.33 (9) of the statutes is created to read:
AB647,37,1715
703.33
(9) Electronic disclosure. The information required under subs. (1)
16and (2) may be disclosed electronically if the purchaser, in the manner prescribed by
17law, agrees to that method of transmission.
AB647, s. 108
18Section
108. 703.34 (title) of the statutes is amended to read:
AB647,37,20
19703.34 (title)
Blanket mortgages and other blanket liens affecting a
20unit at time of first conveyance; mortgagee approvals.
AB647, s. 109
21Section
109. 703.34 (intro.) (except 703.34 (title)) of the statutes is
22renumbered 703.34 (1m) (intro.) and amended to read:
AB647,37,2423
703.34
(1m) (intro.) As a condition to the first transfer of title to each unit
, one
24of the following must be met:
AB647, s. 110
1Section
110. 703.34 (1) of the statutes is renumbered 703.34 (1m) (a) and
2amended to read:
AB647,38,53
703.34
(1m) (a) Every mortgage and other lien affecting
such the unit,
4including the undivided interest in the common areas and facilities appurtenant to
5such the unit, shall be paid and satisfied of record
;.
AB647, s. 111
6Section
111. 703.34 (2) of the statutes is renumbered 703.34 (1m) (b) and
7amended to read:
AB647,38,108
703.34
(1m) (b)
A The unit
being transferred and an undivided interest in the
9common areas and facilities appurtenant
thereto to the unit shall be released by
10partial release duly recorded
; or.
AB647, s. 112
11Section
112. 703.34 (2m) of the statutes is created to read:
AB647,38,1912
703.34
(2m) If a mortgagee whose consent or approval is required for an action
13under this chapter cannot be contacted with the use of reasonable diligence, the
14association may seek the right to proceed with the proposed action under ch. 841,
15notwithstanding the missing consent or approval. In determining whether to permit
16the action for which mortgagee consent or approval has not been obtained, the court
17shall consider whether the action is needed to permit the effective management and
18operation of the condominium and any impact the action would have on the value of
19the units in the condominium as security for mortgages on the units.
AB647, s. 113
20Section
113. 703.34 (3) of the statutes is renumbered 703.34 (1m) (c) and
21amended to read: