AB781: Bill Text

AB781,38,12 703.315 Lease or rental agreements for residential units. (1) Definitions. In this section:

AB781,38,15 (a) "Condominium rental agreement" means an agreement, 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.

AB781,38,16 (b) "Tenant" means any of the following:

AB781,38,18 1. A person occupying or entitled to present or future occupancy of a residential condominium unit under a condominium rental agreement.

AB781,38,20 2. A periodic tenant, as defined in s. 704.01 (2), of a residential condominium unit that pays rent on a month-to-month or greater recurring interval of time.

AB781,38,22 (c) "Unit owner" means the owner of a unit that is rented or leased under a condominium rental agreement or by a periodic tenant.

AB781,39,7 (2) Agreement for compliance. Entering into a condominium rental agreement constitutes an agreement by the tenant, as a condition of the condominium rental agreement, to comply with this chapter, the rules and bylaws of the association, and the provisions of the declaration. Entitlement to occupancy of a unit as a periodic tenant, as described in sub. (1) (b) 2., constitutes an agreement by the periodic tenant, as a condition of the tenancy, to comply with this chapter, the rules and bylaws of the association, and the provisions of the declaration.

AB781,39,11 (3) Copy of written agreement to association. Within 5 business days after entering into or renewing a written condominium rental agreement, the unit owner shall provide a copy of the agreement to the association. The association shall keep a copy of any condominium rental agreement on file while the agreement is in effect.

AB781,39,13 (4) Contact of unit owner and tenant by association. The association may contact or give notice to the tenant or unit owner by:

AB781,39,15 (a) Making the contact or giving the notice by the means indicated by the tenant or unit owner in writing to the association.

AB781,39,18 (b) If par. (a) does not apply, by any method under s. 704.21 (1) (a) to (e), in the case of the tenant, or by any method under s. 704.21 (2) (a) to (d), in the case of the unit owner.

AB781,39,21 (5) Copy of condominium documents to tenant. Before a tenant occupies a unit, the unit owner shall provide a copy of the declaration and the association bylaws and rules to the tenant or place the information in the unit.

AB781,39,23 (6) Time share not covered. This section does not apply to a time-share unit governed under ch. 707.

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.

AB781, s. 47 Section 47 . 703.33 (1) (h) of the statutes is created to read:

AB781,40,4 703.33 (1) (h) An executive summary setting forth in clear plain language the following information or location within the disclosure materials described in pars. (a) to (g) where the information may be found:

AB781,40,5 1. `Condominium identification.' The name of the condominium.

AB781,40,8 2. `Expansion plans.' A description of the declarant's expansion plan for the condominium and deadline for implementation and the identity of the condominium management during the expansion period.

AB781,41,2 3. `Governance.' The name and address of the condominium association; whether the association is self-managed or has hired or retained management; and the name, address, and telephone number of the individual or individuals who may be contacted regarding the condominium in general.

AB781,41,5 4. `Special amenities.' A description of any special amenities, such as an athletic club or golf course, and a statement of the obligation of a unit owner to join or support the amenity.

AB781,41,7 5. `Maintenance and repair of units.' A description of an owner's responsibilities for the repair and maintenance of the unit.

AB781,41,11 6. `Maintenance, repair, and replacement of common elements.' The identity of the person responsible for the maintenance, repair, and replacement of common elements and limited common elements and whether repairs or replacements will be funded from unit owner assessments, reserve funds, or both.

AB781,41,13 7. `Rental of units.' Whether unit owners may rent their units and any restrictions on rentals.

AB781,41,16 8. `Unit alterations.' 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.

AB781,41,17 9. `Parking.' A description of the availability, restrictions, and costs of parking.

AB781,41,18 10. `Pets.' A description of rules relating to unit owners' pets.

AB781,41,21 11. `Reserves.' Whether the association maintains reserves for repairs and replacement of common elements beyond routine maintenance and, if so, whether a statutory reserve account under s. 703.163 is maintained.

AB781,41,23 12. `Other restrictions or features.' At the option of the declarant or association a 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.

AB781, s. 48 Section 48. 703.33 (1m) of the statutes is created to read:

AB781,42,7 703.33 (1m) Preparation of executive summary. The executive summary under sub. (1) (h) shall be prepared, and subsequently revised whenever a change is made in the disclosure materials described in sub. (1) (a) to (g) that requires a revision of a statement in the summary, by the declarant or the association, whichever is in control of the condominium when the executive summary is prepared or 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.

AB781, s. 49 Section 49 . 703.33 (2) (intro.) of the statutes is amended to read:

AB781,43,7 703.33 (2) Disclosure form. (intro.) The materials required in sub. (1) shall be delivered to a prospective purchaser with cover sheet, index, and tables of contents as prescribed in this section. A cover sheet and index shall precede all other materials required in sub. (1). The executive summary required under sub. (1) (h) shall appear immediately following the index. A table of contents shall precede the section to which it applies.

Note: Specifies the location of the executive summary: immediately following the index at the beginning of the disclosure materials.

AB781, s. 50 Section 50. 703.33 (2) (a) (form) 2. of the statutes is amended to read:

AB781,43,15 703.33 (2) (a) (form) 2. THESE DISCLOSURE MATERIALS GIVEN TO YOU AS REQUIRED BY LAW MAY, WITH THE EXCEPTION OF THE EXECUTIVE SUMMARY, BE RELIED UPON AS CORRECT AND BINDING. FOR A COMPLETE UNDERSTANDING OF THE EXECUTIVE SUMMARY, CONSULT THE DISCLOSURE DOCUMENTS TO WHICH A PARTICULAR EXECUTIVE SUMMARY STATEMENT PERTAINS. ORAL STATEMENTS MAY NOT BE LEGALLY BINDING.

AB781, s. 51 Section 51. 703.33 (2) (a) (form) 3. of the statutes is amended to read:

AB781,44,6 703.33 (2) (a) (form) 3. YOU MAY AT ANY TIME WITHIN 5 BUSINESS DAYS FOLLOWING RECEIPT OF THESE DOCUMENTS, OR FOLLOWING NOTICE OF ANY MATERIAL CHANGES IN THESE DOCUMENTS, CANCEL IN WRITING THE CONTRACT OF SALE AND RECEIVE A FULL REFUND OF ANY DEPOSITS MADE. IF THE SELLER DELIVERS LESS THAN ALL OF THE DOCUMENTS REQUIRED, YOU MAY, WITHIN 5 BUSINESS DAYS FOLLOWING RECEIPT OF THE DOCUMENTS, DELIVER A REQUEST FOR ANY MISSING DOCUMENTS. IF YOU TIMELY DELIVER A REQUEST FOR MISSING DOCUMENTS, YOU MAY, AT ANY TIME WITHIN 5 BUSINESS DAYS FOLLOWING THE EARLIER OF EITHER THE RECEIPT OF THE REQUESTED DOCUMENTS OR THE SELLER'S DEADLINE TO DELIVER THE REQUESTED DOCUMENTS, CANCEL IN WRITING THE CONTRACT OF SALE AND RECEIVE 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.)

AB781, s. 52 Section 52. 703.33 (2) (b) (form) 1. of the statutes is renumbered 703.33 (2) (b) (form) 1m.

AB781, s. 53 Section 53. 703.33 (2) (b) (form) 1c. of the statutes is created to read:

AB781,44,12 703.33 (2) (b) (form) 1c. Executive summary. The executive summary highlights for a buyer of a condominium unit essential information regarding the condominium. 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.

AB781, s. 54 Section 54. 703.33 (2) (c) of the statutes is amended to read:

AB781,45,10 703.33 (2) (c) Tables of contents and page numbers. In addition to an index required by par. (b), there shall be provided tables of contents for the declaration, and bylaws and articles of incorporation which shall identify shall be provided, identifying each section of these documents and provide providing a page number for each section. Each section of disclosure material required in sub. (1) shall, on the first page of that material, identify contents of that section but, with an the exception of the declaration, and bylaws and articles of incorporation, shall, is not be required to have a table of contents. Each page of disclosure materials shall contain a page number sufficient to identify it within the body of disclosure materials. Page numbers for the declaration, bylaws and articles of incorporation required in par. (b) shall be the first page of the table of contents for that section. All other page numbers required in the index shall refer to the first page of that section on which the title appears. Each section of disclosure material shall be separately identified by a letter, tab, or number. Pages within each section shall be consecutively numbered with an indication 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.

AB781, s. 55 Section 55. 703.33 (3) of the statutes is renumbered 703.33 (3m).

AB781, s. 56 Section 56 . 703.33 (3c) of the statutes is created to read:

AB781,45,21 703.33 (3c) Delivery of incomplete set of disclosure materials. If the seller delivers disclosure materials that include the cover sheet required in sub. (2) (a), but that do not include all of the documents required under sub. (1), the purchaser may, within 5 business days from receipt of the disclosure materials, request any documents that were required to be delivered under sub. (1), but that were not timely delivered. If no executive summary required under subs. (1) (h) and (1m) has been prepared, the seller may so inform the purchaser when the seller delivers the disclosure materials to the seller. The seller has 5 business days following receipt of 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.

AB781, s. 57 Section 57. 703.33 (4) of the statutes is renumbered 703.33 (4) (a) and amended to read:

AB781,46,8 703.33 (4) (a) Any purchaser may at any time within 5 business days following receipt of all information of the documents required under sub. (1) and within 5 business days following receipt of all information of the amendments required under sub. (3) (3m), rescind in writing a contract of sale without stating any reason and without any liability on his or her part, and the purchaser is entitled to the return of any deposits made in account of the contract.

AB781, s. 58 Section 58 . 703.33 (4) (b) and (c) of the statutes are created to read:

AB781,46,13 703.33 (4) (b) If the disclosure materials delivered by the seller do not include all the documents required under sub. (1), the purchaser may rescind in writing a contract of sale without stating any reason and without any liability on his or her part as follows:

AB781,46,16 1. If the purchaser does not give notice requesting missing documents under sub. (3c), the purchaser may rescind within 5 business days following receipt of the incomplete disclosure materials.

AB781,46,20 2. If the purchaser gives notice requesting missing documents under sub. (3c), the purchaser may rescind within 5 business days following the earlier of receipt of the requested documents or the deadline, under sub. (3c), for the seller's delivery of the requested missing documents.

AB781,46,22 (c) A purchaser who timely rescinds under par. (a) or (b) is entitled to the return of 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.

AB781, s. 59 Section 59 . 703.365 (title), (1), (2) and (3) of the statutes are amended to read:

AB781,47,5 703.365 (title) Small residential condominiums. (1) Applicability. (a) The declaration for a small residential condominium may provide that any or all of subs. (2) to (8) or any parts of those subsections apply to the small 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.

AB781,47,9 (b) If a declaration under par. (a) provides that any or all of subs. (2) to (8) or any parts of those subsections apply, then, except as provided in those subsections or parts of those subsections, this chapter applies to the small residential condominium in the same manner and to the same extent as to other condominiums.

AB781,47,11 (2) Declaration. (a) The declaration for a small residential condominium need not contain those provisions otherwise required under s. 703.09 (1) (e) to (g) and (i).

AB781,47,13 (b) The undivided percentage interest in a small residential condominium shall be is allocated equally among the units.

AB781,47,15 (c) Each unit in a small residential condominium shall have has one vote at meetings of the association.

AB781,47,19 (d) Commercial activity is permitted in a small residential condominium that consists solely of units restricted to residential uses only to the extent that commercial activity is permitted in residences in a zoning ordinance adopted under s. 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.

AB781,48,2 (e) All actions taken under this chapter which that require a vote of units or unit owners must be approved by an affirmative vote or written consent of at least 75% of the unit votes of a small residential condominium, or a greater percentage if required by the declaration or this chapter.

AB781,48,7 (3) Bylaws. (a) Notwithstanding s. 703.10 (2) (a), all aspects of the management, operation, and duties of the association of a small residential condominium shall be delegated to the board of directors, which may retain a manager, including a master association under s. 703.155, for the small residential condominium, and the bylaws shall so specify.