AB647: Bill Text

AB647,7,19 703.02 (9c) "First mortgage" includes a security interest that is equivalent to a first mortgage.

AB647, s. 5 Section 5. 703.02 (9d) of the statutes is created to read:

AB647,8,2 703.02 (9d) "First mortgagee" includes a holder of a security interest that is equivalent to a first mortgage.

AB647, s. 6 Section 6. 703.02 (12) of the statutes is amended to read:

AB647,8,7 703.02 (12) "Mortgagee" means the holder of any recorded mortgage encumbering one or more units or a land contract vendor and, for purposes of receiving notices or giving approvals, includes the party servicing the mortgage or land contract.

AB647, s. 7 Section 7. 703.02 (14g) of the statutes is amended to read:

AB647,8,12 703.02 (14g) "Removal instrument" means an instrument that complies with the requirements of s. 59.43 (2m) and that removes property, either all or a portion of a condominium, from the provisions of this chapter upon recording. "Removal instrument" does not include an instrument of conveyance.

AB647, s. 8 Section 8. 703.02 (15) of the statutes is amended to read:

AB647,8,18 703.02 (15) "Unit" means a part of a condominium intended for any type of independent use, including one or more cubicles of air at one or more levels of space or one or more rooms or enclosed spaces located on one or more floors, or parts thereof, in a building. A unit may be of any size, may be for any use, and may include 2 or more noncontiguous areas.

AB647, s. 9 Section 9. 703.02 (16) of the statutes is amended to read:

AB647,8,21 703.02 (16) "Unit number" means the number identifying designating a unit in a declaration.

AB647, s. 10 Section 10. 703.03 of the statutes is amended to read:

AB647,9,2 703.03 Application of chapter. This chapter applies only to property, a sole owner or all of the owners, and any first mortgagee, of which submit the property to the provisions of this chapter by duly executing and recording a declaration and plat as provided in this chapter.

AB647, s. 11 Section 11. 703.04 of the statutes is amended to read:

AB647,9,6 703.04 Status of the units. A unit, together with its undivided interest in the common elements and its other appurtenant interests, for all purposes constitutes real property.

AB647, s. 12 Section 12. 703.05 of the statutes is amended to read:

AB647,9,10 703.05 Ownership of units. A unit owner is entitled to the exclusive ownership and possession of his or her unit and to the exercise of the rights appurtenant to it.

AB647, s. 13 Section 13. 703.06 of the statutes is amended to read:

AB647,9,18 703.06 Alterations prohibited. Except as otherwise provided in this chapter, the declaration, or the bylaws, or any rules promulgated under any of them, no unit owner may make any alteration that would jeopardize the soundness or safety of the property, interfere with the condition or operation of the mechanical systems affecting property that is not a part of the unit, reduce the value thereof of the property, 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.

AB647, s. 14 Section 14. 703.07 (2) of the statutes is amended to read:

AB647,9,25 703.07 (2) A condominium instrument, and all amendments, addenda and certifications of any amendment or addendum to a condominium instrument, and any certification or statement relating to the condominium that must be recorded shall be recorded in every county in which any portion of the condominium is located, and shall be indexed in the name of the declarant and the name of the condominium. Subsequent instruments affecting the title to a unit which that is physically located entirely within a single county shall be recorded only in that county, notwithstanding the fact that the common elements are not physically located entirely within that county. Subsequent amendments and addenda shall be indexed under the name of the condominium.

AB647, s. 15 Section 15. 703.08 (1) (intro.) of the statutes is amended to read:

AB647,10,13 703.08 (1) (intro.) Residential real property may not be converted to a condominium unless the owner of the residential real property gives prior written notice of the conversion to each of the residential tenants of the building or buildings scheduled for conversion structure or structures that are part of the property being converted. During the 60-day period immediately following the date of delivery of the notice a residential tenant has the first right to purchase the unit in which the tenant resides, if the unit is offered for sale at any time during that period, for any of the following:

AB647, s. 16 Section 16. 703.08 (2) (intro.) of the statutes is amended to read:

AB647,10,17 703.08 (2) (intro.) A residential 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:

AB647, s. 17 Section 17. 703.08 (3) of the statutes is amended to read:

AB647,10,21 703.08 (3) A residential 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.

AB647, s. 18 Section 18. 703.09 (1c) of the statutes is amended to read:

AB647,11,2 703.09 (1c) A condominium declaration shall be signed by the owners of the property and by or on behalf of 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.

AB647, s. 19 Section 19. 703.09 (2) of the statutes is amended to read:

AB647,11,16 703.09 (2) Except as otherwise provided in sub. (4) and ss. 703.093, 703.13 (6) (c) and (d) and (8) (b), and 703.26 this chapter, a condominium declaration may be amended with the written consent of at least two-thirds of the aggregate of the votes established under sub. (1) (f) or a greater percentage if provided in the declaration. An amendment becomes effective when it is recorded in the same manner as the declaration. The document submitting the amendment for recording shall state that the required consents and approvals for the amendment were received. A unit owner's written consent is not effective unless it is approved in writing by the first mortgagee of the unit, or the holder of an equivalent security interest, if any. Approval from the first mortgage lender or equivalent security interest holder, or the person servicing the first mortgage loan or its equivalent on a unit, constitutes approval of the first mortgagee or equivalent security interest holder under this subsection.

AB647, s. 20 Section 20. 703.09 (3) (bm) of the statutes is created to read:

AB647,11,19 703.09 (3) (bm) Any action to recover compensation under par. (a) shall be commenced no later than one year after the amendment is recorded or be barred.

AB647, s. 21 Section 21. 703.10 (1) of the statutes is amended to read:

AB647,12,4 703.10 (1) Bylaws to govern administration. The administration of every condominium shall be governed by bylaws. Every unit owner and occupant shall comply strictly with the bylaws and with the rules adopted under the bylaws, as the bylaws or rules are amended from time to time, and with the covenants, conditions, and restrictions set forth in the declaration or in the deed to the unit. Failure to comply with any of the bylaws, rules, covenants, conditions , or restrictions is grounds for action to recover sums due, for damages or injunctive relief or both, maintainable by the association or, in a proper case, by an aggrieved unit owner , or for enforcement under s. 703.24.

AB647, s. 22 Section 22. 703.10 (2) (d) of the statutes is amended to read:

AB647,12,13 703.10 (2) (d) The election by the unit owners of a board of directors of whom, except during the period of declarant control, not more than one is a nonunit owner,; the number of persons constituting the same and board of directors; that the terms of at least one-third of the elected directors shall expire annually, may not exceed 3 years but that a director may be reelected for successive terms; the powers and duties of the board,; the compensation, if any, of the directors,; the method of removal from office of directors; and whether or not the board may engage the services of a manager or managing agent.

AB647, s. 23 Section 23. 703.10 (2) (f) of the statutes is amended to read:

AB647,12,16 703.10 (2) (f) The manner of borrowing money and acquiring and conveying property, if the association is to have these powers.

AB647, s. 24 Section 24. 703.10 (4) of the statutes is amended to read:

AB647,12,22 703.10 (4) Prohibiting voting by certain unit owners. The bylaws may contain a provision prohibiting any unit owner from voting at a meeting of the association if the association has recorded filed a statement of condominium lien on the person's unit and the amount necessary to release the lien has not been paid at the time of the meeting.

AB647, s. 25 Section 25. 703.10 (6) of the statutes is amended to read:

AB647,13,3 703.10 (6) Title to condominium units unaffected by condominium instruments or bylaws. Title to a condominium unit is not rendered unmarketable or otherwise affected by any provision of the bylaws because the unit is subject to the terms of a declaration, a condominium plat, bylaws, or rules, or by reason of any failure of the bylaws to comply with the provisions of this chapter.

AB647, s. 26 Section 26. 703.105 (1m) of the statutes is amended to read:

AB647,13,8 703.105 (1m) No bylaw or rule may be adopted or provision included in a declaration or deed that prohibits a unit owner from displaying in his or her condominium unit a sign that supports or opposes a candidate for public office or a referendum question.

AB647, s. 27 Section 27. 703.105 (2) of the statutes is amended to read:

AB647,13,13 703.105 (2) Notwithstanding subs. (1) and (1m), bylaws or rules may be adopted that regulate the size and location of signs, flags, and flagpoles, including limiting their display to those parts of the condominium that the unit owner has the exclusive right to use.

AB647, s. 28 Section 28. 703.115 (1) of the statutes is renumbered 703.115 (1m), and 703.115 (1m) (a) and (b), as renumbered, are amended to read:

AB647,13,19 703.115 (1m) (a) Requires the review to be completed within 10 working days after submission of the condominium instrument and provides that, if the review is not completed within this period, the condominium instrument is approved for recording without certification of review or approval or the signature of the reviewer.

AB647,13,23 (b) Provides that a condominium instrument may be rejected only if it fails to comply with the applicable requirements of ss. 703.095, 703.11 (2) (a), (c), and (d) and (3), 703.275 (5), and 703.28 (1m) or if the surveyor's certificate under s. 703.11 (4) is not attached to or included in the condominium plat.

AB647, s. 29 Section 29. 703.115 (1c) of the statutes is created to read:

AB647,14,2 703.115 (1c) (a) In this section, "condominium instrument" includes a correction instrument and a removal instrument.

AB647, s. 30 Section 30. 703.12 of the statutes is amended to read:

AB647,14,11 703.12 Description of units. A description in any deed or other instrument affecting title to any unit which that makes reference to the letter or number or other appropriate unit designation on the condominium plat together with a reference to the condominium instruments shall be a good and sufficient description for all purposes. Whenever a parcel identification number is required for any purpose, the designation of all units in the condominium may be shown by the parcel number or numbers of the property submitted to the provisions of this chapter to create the condominium.

AB647, s. 31 Section 31. 703.13 (2) of the statutes is amended to read:

AB647,14,14 703.13 (2) Rights to common surpluses. Common surpluses shall be disbursed used or allocated as provided under s. 703.16 (1).

AB647, s. 32 Section 32. 703.13 (4) of the statutes is renumbered 703.13 (4) (a) and amended to read:

AB647,15,2 703.13 (4) (a) The Except as provided in this chapter, the undivided percentage interests shall have a permanent character and, except as specifically provided by this chapter, in the common elements established in the declaration may not be changed without the written consent of all of the unit owners of every unit in the condominium and their mortgagees. Any change shall be evidenced by an amendment to the declaration and recorded among the appropriate land records the approval of the first mortgagee of each unit subject to a mortgage. The percentage interests may not be separated from the unit to which they appertain. Any instrument, matter, circumstance, action, occurrence , or proceeding in any manner affecting a unit also shall affect, in like manner, the undivided percentage interests appurtenant to the unit.

AB647, s. 33 Section 33. 703.13 (4) (b) of the statutes is created to read:

AB647,15,8 703.13 (4) (b) Except for the total destruction of the condominium, in the event that one or more units of a condominium are destroyed and not rebuilt, or in the event that one or more units are removed from the condominium, the percentage interests in the common elements shall be adjusted to maintain the same ratio of those interests among the remaining units.

AB647, s. 34 Section 34. 703.13 (4) (c) of the statutes is created to read:

AB647,15,18 703.13 (4) (c) If a condominium plat depicts a building as containing a specified number of units but the building is constructed in such a manner as to physically preclude the building from containing the full number of units shown on the plat, the declaration may be amended as provided in s. 703.09 (2) to remove the excess units from the condominium. The percentage interests appertaining to the excess units shall be added on a pro rata basis to the percentage interests appertaining to the remaining units. Amendments enacted under this paragraph shall specify the new percentage interests for all of the remaining units, which percentage interests collectively shall total 100 percent.

AB647, s. 35 Section 35. 703.13 (4) (d) of the statutes is created to read:

AB647,15,22 703.13 (4) (d) Any change to the undivided percentage interests in the common elements must be evidenced by amending the declaration in the manner provided in s. 703.09 (2).

AB647, s. 36 Section 36. 703.13 (4) (e) of the statutes is created to read:

AB647,15,25 703.13 (4) (e) Section 703.09 (3) does not apply to any amendment made to a declaration under this subsection.

AB647, s. 37 Section 37. 703.13 (5) (a) of the statutes is amended to read:

AB647,16,11 703.13 (5) (a) A unit owner may make any improvements or alterations within his or her unit that do not impair the structural integrity or lessen the support of any portion of the condominium or interfere with the condition or operation of the mechanical systems affecting property that is not a part of the unit and that do not create a nuisance substantially affecting the use and enjoyment of other units or the common elements. A unit owner may not change the exterior appearance of a unit or of any other portion of the condominium without permission of the board of directors of the association. A unit owner making alterations within his or her unit that involve changing the configuration of rooms within the unit shall file plans with the association showing the reconfiguration.

AB647, s. 38 Section 38. 703.13 (5) (b) of the statutes is amended to read:

AB647,16,21 703.13 (5) (b) Except to the extent prohibited by the condominium instruments, and subject to any restrictions and limitation specified therein, a unit owner acquiring an adjoining or adjoining part of an adjoining unit, may remove all or any part of any intervening partition or create doorways or other apertures therein, even if the partition may in whole or in part be a common element, if those acts do not impair the structural integrity or lessen the support of any portion of the condominium or interfere with the condition or operation of the mechanical systems affecting property that is not a part of the unit. The creation of doorways or other apertures is not deemed an alteration of boundaries.

AB647, s. 39 Section 39. 703.13 (5m) (a) 3. of the statutes is amended to read:

AB647,16,25 703.13 (5m) (a) 3. The improvement will not impair the structural integrity of the condominium or interfere with the condition or operation of the mechanical systems affecting property that is not a part of the unit.

AB647, s. 40 Section 40. 703.13 (5m) (b) of the statutes is amended to read:

AB647,17,7 703.13 (5m) (b) All costs and expenses of an improvement under this subsection and any increased costs of maintenance and repair of the limited common elements resulting from the improvement, as determined by the association, are the obligation of the unit owner. The unit owner shall protect the association and other unit owners from liens on property of the association or of other unit owners that otherwise might result from the improvement.

AB647, s. 41 Section 41. 703.13 (6) (b) of the statutes is amended to read:

AB647,17,14 703.13 (6) (b) If any unit owners of adjoining units whose mutual boundaries may be relocated desire to relocate those boundaries, the principal officer of the unit owners association, upon written application from those unit owners , and after determining that the relocation does not violate the condominium instruments and providing 30 days' written notice to all other unit owners, shall prepare and execute appropriate instruments.

AB647, s. 42 Section 42. 703.13 (6) (c) of the statutes is amended to read:

AB647,18,3 703.13 (6) (c) An amendment to a declaration shall identify the units involved and shall state that the boundaries between those units are being relocated by agreement of the unit owners thereof of those units. The amendment shall contain words of conveyance between those unit owners, and when recorded shall also be indexed in the name of the grantor and grantee. If the adjoining unit owners have specified in their written application the reallocation between their units of the aggregate undivided interest in the common elements appertaining to those units, the amendment to the declaration shall reflect that reallocation. An amendment to a declaration under this paragraph shall be adopted, at the option of the adjoining unit owners, either under s. 703.09 (2) or by the written consent of the owners of the adjoining units involved and the written consent by or on behalf of the first mortgagees of the adjoining units, which amendment shall constitute a conveyance between the unit owners of the affected part or parts of the unit or units.

AB647, s. 43 Section 43. 703.13 (6) (e) of the statutes is amended to read:

AB647,18,9 703.13 (6) (e) Plats and plans showing the altered boundaries and the dimensions thereof between adjoining units, and their identifying numbers or letters designations, shall be prepared. The plats and plans shall be certified as to their accuracy in compliance with this subsection by a civil engineer, architect, or licensed land surveyor authorized to practice his or her profession in the state.

AB647, s. 44 Section 44. 703.13 (7) (b) of the statutes is renumbered 703.13 (7) (b) 2. and amended to read:

AB647,18,25 703.13 (7) (b) 2. The principal officer of the association, upon written application of a person proposing the separation of a unit (separator) , and after determining that the separation does not violate the condominium instruments and providing 30 days' written notice to all other unit owners, shall promptly prepare and execute appropriate instruments under this subsection paragraph. An amendment to the condominium instruments shall assign a new identifying number designation to each new unit created by the separation of a unit, except that one of the new units may retain the original designation of the separated unit. The amendment shall allocate to those new units, on a reasonable basis acceptable to the separator and the executive board, all of the undivided interest in the common element elements and rights to use the limited common elements and the votes in the association formerly appertaining to the separated unit. The amendment shall reflect a proportionate allocation to the new units of the liability for common expenses and rights to common surpluses formerly appertaining to the subdivided unit.

AB647, s. 45 Section 45. 703.13 (7) (b) 1. of the statutes is created to read:

AB647,19,5 703.13 (7) (b) 1. This paragraph applies when the effect of the separation is to create 2 or more units of the existing condominium and the resulting interests will not be subject to organizational or operating documents other those of the existing condominium.

AB647, s. 46 Section 46. 703.13 (7) (c) of the statutes is renumbered 703.13 (7) (b) 3. and amended to read:

AB647,19,14 703.13 (7) (b) 3. Plats and plans showing the boundaries and dimensions separating of the new units together with their other boundaries and their new identifying numbers or letters, including the boundary separating them, together with their new designations, shall be prepared. The plats and plans shall be certified as to their accuracy and compliance with this subsection paragraph by a civil engineer, architect, or licensed land surveyor authorized to practice his or her profession in the state.

AB647, s. 47 Section 47. 703.13 (7) (cm) of the statutes is created to read:

AB647,19,19 703.13 (7) (cm) 1. This paragraph applies when the effect of the separation involves the creation of 2 or more ownership interests in the unit that are subject to organizational or operating documents in addition to those of the existing condominium.

AB647,19,20 2. If the interests are based on time intervals, ch. 707 applies.