AB647: Bill Text

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.

AB647,19,24 3. If permitted in the declaration, a condominium unit itself may be subjected to the condominium form of ownership in accordance with this paragraph and any restrictions and limitations that the condominium instruments may specify. In that case, all of the following apply:

AB647,20,2 a. The unit subjected to the condominium form of ownership shall be considered to be property.

AB647,20,5 b. The unit subjected to the condominium form of ownership shall remain a unit in the original condominium and shall continue to be subject to the condominium instruments for the the original condominium.

AB647,20,8 c. The association of the new condominium shall have all rights and obligations of the unit owner of the unit in the original condominium from which the new condominium is created.

AB647,20,10 d. All assessments and other expenses chargeable to the unit from which the new condominium is created shall be common expenses of the new condominium.

AB647,20,13 e. Upon the creation of separate tax parcels under s. 703.21 for the units in the newly created condominium, the unit subjected to the condominium form of ownership shall cease to be a separate tax parcel under s. 703.21.

AB647,20,15 f. Creation of the new condominium shall not require the unit from which the new condominium is created to be removed from the provisions of this chapter.

AB647,20,19 4. If permitted in the declaration, a condominium unit may be the property upon which another ownership entity is based if the organizational and operating documents are legally sufficient to create the proposed interests and any entity involved.

AB647, s. 48 Section 48. 703.13 (7) (d) of the statutes is renumbered 703.13 (7) (b) 4. and amended to read:

AB647,21,3 703.13 (7) (b) 4. After appropriate instruments have been prepared and executed, they shall be delivered promptly to the separator upon payment by him or her of all reasonable cost for their preparation. Those instruments are effective when the separator has executed them and they are recorded. The recording of the instruments is conclusive evidence that the separation did not violate any restrictions or limitation specified by the condominium instruments and that any reallocations made under this subsection paragraph were reasonable.

AB647, s. 49 Section 49. 703.13 (7) (dm) of the statutes is created to read:

AB647,21,6 703.13 (7) (dm) All interests created in connection with the separation of a unit remain subject to the condominium instruments and association documents.

AB647, s. 50 Section 50. 703.13 (8) (b) of the statutes is amended to read:

AB647,21,23 703.13 (8) (b) If the unit owners of adjoining units that may be merged desire to merge the units and the association determines that the merger does not violate the condominium instruments, the unit owners, after providing 30 days' written notice to all other unit owners, shall prepare and execute appropriate instruments under this subsection. An amendment to the condominium instruments shall assign a new identifying number designation to the new unit created by the merger of the units, which designation may be the original designation of one of the merged units, and shall allocate to the new unit all of the undivided interest in the common elements and rights to use the limited common elements and the votes in the association formerly appertaining to the separate units. The amendment shall reflect an allocation to the new unit of the liability for common expenses and rights to common surpluses formerly appertaining to the separate units. An amendment to a declaration under this paragraph shall be adopted either under s. 703.09 (2) or by the written consent of the owners of the units to be merged, the written consent by or on behalf of the first mortgagees of those units, if any, and the written consent of the board of directors of the association.

AB647, s. 51 Section 51. 703.13 (8) (c) of the statutes is amended to read:

AB647,22,5 703.13 (8) (c) Plats and plans showing the boundaries and dimensions of the new unit, together with the new identifying number or letter designation, shall be prepared. The plats and plans shall be certified as to their accuracy and compliance with this subsection by a civil engineer, architect, or licensed land surveyor authorized to practice in this state.

AB647, s. 52 Section 52. 703.14 (1) of the statutes is amended to read:

AB647,22,13 703.14 (1) The common elements may be used only for the purposes for which they were intended and, except as provided in the condominium instruments or association bylaws or rules, the common elements are subject to mutual rights of support, access, use, and enjoyment by all unit owners. However, any portion of the common elements designated as limited common elements may be used only by the unit owner of the unit to which their use is limited in the condominium instruments and association bylaws and rules.

AB647, s. 53 Section 53. 703.15 (2) (a) of the statutes is amended to read:

AB647,22,25 703.15 (2) (a) Establishment. Every Unless the declarant shall establish earlier establishes an association to govern the condominium not later than, as of the date of the first conveyance of a unit to a purchaser, an association shall immediately exist to govern the affairs of the condominium. The association shall be organized as a profit or nonprofit corporation or exist as an unincorporated association, unless the declarant has organized it as a nonprofit corporation before the first conveyance. After it is organized, the the first conveyance, the association may be organized as a nonprofit corporation only with the consent of all of the unit owners. The declarant shall operate the association until the declarant transfers control of the association to the unit owners. The membership of the association shall at all times consist exclusively of all of the unit owners.

AB647, s. 54 Section 54. 703.15 (2) (b) of the statutes is amended to read:

AB647,23,5 703.15 (2) (b) Power and responsibility prior to establishment existence . Until an association is established exists under par. (a), a declarant has the power and responsibility to act in all instances where this chapter, any other provision of the law, or the declaration require action by the association or its officers.

AB647, s. 55 Section 55. 703.15 (2) (c) 1. (intro.) of the statutes is amended to read:

AB647,23,12 703.15 (2) (c) 1. (intro.) Except as provided in par. (d), a declarant may authorize the declarant or persons designated by him or her to appoint and remove the officers of the association or to exercise the powers and responsibilities otherwise assigned by the declaration or this chapter to the association or its officers. A declaration may not authorize any declarant control of the association for a period exceeding the earlier of any of the following:

AB647, s. 56 Section 56. 703.15 (2) (c) 1. a. of the statutes is amended to read:

AB647,23,15 703.15 (2) (c) 1. a. Ten Except as provided in subd. 1. c., 10 years in the case of an expandable condominium.

AB647, s. 57 Section 57. 703.15 (2) (c) 1. b. of the statutes is amended to read:

AB647,23,18 703.15 (2) (c) 1. b. Three Except as provided in subd. 1. c., 3 years in the case of any other condominium.

AB647, s. 58 Section 58. 703.15 (2) (c) 1. c. of the statutes is amended to read:

AB647,23,23 703.15 (2) (c) 1. c. Thirty days after the conveyance of 75% 75 percent of the common element interest to purchasers if the conveyance of 75 percent of the common element interest occurs before the time specified in subd. 1. a. or b., whichever is applicable.

AB647, s. 59 Section 59. 703.15 (2) (c) 2. of the statutes is amended to read:

AB647,24,6 703.15 (2) (c) 2. The period of declarant control begins on the date that the first condominium unit is conveyed by a declarant to any person other than the declarant. If there is any other unit owner other than a declarant, a declaration may not be amended to increase the scope or the period of the declarant control. The declarant may transfer control of the association before the mandatory expiration of the period of declarant control.

AB647, s. 60 Section 60. 703.15 (2) (c) 3. of the statutes is created to read:

AB647,24,9 703.15 (2) (c) 3. Upon the termination of declarant control, the declarant shall turn over all association records and accounts to the directors elected under par. (f).

AB647, s. 61 Section 61. 703.15 (2) (d) of the statutes is amended to read:

AB647,24,18 703.15 (2) (d) Meeting to elect directors. Prior to Within 30 days after the conveyance of 25% 25 percent of the common element interest to purchasers, an association shall hold a meeting and the unit owners other than the declarant shall elect at least 25% 25 percent of the directors of the executive board. Prior to Within 30 days after the conveyance of 50% 50 percent of the common element interest to purchasers, an association shall hold a meeting and the unit owners other than the declarant shall elect at least 33 1/3% 33 1/3 percent of the directors of the executive board.

AB647, s. 62 Section 62. 703.15 (2) (e) of the statutes is amended to read:

AB647,24,25 703.15 (2) (e) Calculation of percentage. The calculation of the percentage of common element interest conveyed to purchasers under pars. (c) and (d) shall be based on the percentage of undivided interest appertaining to each unit which that has been conveyed assuming that all the units to be completed are included in the condominium, including, in the case of an expanding condominium, the maximum number of units that may be added.

AB647, s. 63 Section 63. 703.15 (2) (f) of the statutes is amended to read:

AB647,25,6 703.15 (2) (f) Elections after expiration of declarant control. Not later than 45 days after the expiration of any period of declarant control ends, an association shall hold a meeting and the unit owners shall elect an executive board of at least 3 directors and officers of the association. The directors and officers shall take office upon election.

AB647, s. 64 Section 64. 703.15 (3) (a) (intro.) of the statutes is amended to read:

AB647,25,9 703.15 (3) (a) Powers. (intro.) An In addition to any other powers vested in it by law, an association has the power to do all of the following:

AB647, s. 65 Section 65. 703.15 (3) (a) 1. of the statutes is amended to read:

AB647,25,12 703.15 (3) (a) 1. Adopt and amend budgets for revenues, expenditures, and reserves and levy and collect assessments for common expenses from unit owners;.

AB647, s. 66 Section 66. 703.15 (3) (a) 2. of the statutes is amended to read:

AB647,25,14 703.15 (3) (a) 2. Employ and dismiss employees and agents;.

AB647, s. 67 Section 67. 703.15 (3) (a) 3. of the statutes is amended to read:

AB647,25,16 703.15 (3) (a) 3. Sue on behalf of all unit owners ; and.

AB647, s. 68 Section 68. 703.15 (3) (b) (intro.) of the statutes is amended to read:

AB647,25,19 703.15 (3) (b) Conditional powers. (intro.) Subject to any restrictions and limitations specified by the declaration, an association may do any of the following:

AB647, s. 69 Section 69. 703.15 (4) (d) 1. of the statutes is amended to read:

AB647,26,3 703.15 (4) (d) 1. At meetings of the association every unit owner is entitled to cast the number of votes appurtenant to his or her unit, as established in the declaration under s. 703.09 (1) (f). Unit owners may vote by proxy, but, the proxy is effective only for a maximum period of 180 days following its issuance, unless granted to a mortgagee or lessee. If only one of multiple owners of a unit is present at a meeting of the association, the owner who is present is entitled to cast the votes allocated to that unit. Voting records, including official rosters and ballots cast, shall be open to review by any unit owner.

AB647, s. 70 Section 70. 703.15 (4) (e) of the statutes is amended to read:

AB647,26,8 703.15 (4) (e) Unless otherwise provided in this chapter, and subject to provisions in the bylaws requiring a different majority or manner of voting, decisions of an association shall be made on a majority of votes of the unit owners present and voting at a meeting at which a quorum is present.

AB647, s. 71 Section 71. 703.15 (6) of the statutes is created to read:

AB647,26,13 703.15 (6) Right of action against declarant tolled. Except with respect to any warranties included in a contract of purchase for a specific unit, any applicable statute of limitations affecting the association's right of action against the declarant is tolled until declarant control terminates under sub. (2) (c).

AB647, s. 72 Section 72. 703.155 (1) of the statutes is amended to read:

AB647,26,18 703.155 (1) Definition. In this section, "master association" means a profit or nonprofit corporation or unincorporated association which that exercises the powers under s. 703.15 (3) on behalf of one or more condominiums or for the benefit of the unit owners of one or more condominiums.

AB647, s. 73 Section 73. 703.155 (2) of the statutes is amended to read:

AB647,26,23 703.155 (2) Delegation. If a declaration provides that any of the powers described in s. 703.15 (3) of an association are to be exercised by or may be delegated to a master association, all provisions of this chapter applicable to an association apply to the master association, except as modified by this section or the declaration.

AB647, s. 74 Section 74. 703.16 (1) of the statutes is amended to read:

AB647,27,8 703.16 (1) Disposition of common surpluses. All common surpluses of the association shall be credited to the unit owners' assessments for common expenses may be used by the association in the manner determined by the association. If surpluses are credited or distributed to the unit owners, they shall be allocated among the unit owners as provided in the declaration or, if there is no applicable provision in the declaration, in proportion to their percentage interests in the common elements or as otherwise provided in the declaration or shall be used for any other purpose as the association decides.

AB647, s. 75 Section 75. 703.16 (2) (b) of the statutes is amended to read:

AB647,27,17 703.16 (2) (b) During the period of declarant control of the association under s. 703.15 (2) (c), if any period in which any unit owned by the declarant is exempt from assessments for common expenses until the unit is sold, the total amount assessed against units that are not exempt from assessments may not exceed the amount that equals nonexempt units' budgeted share of common expenses, based on the anticipated common expenses set forth in the annual budget under s. 703.161 (2) (a). The declarant is liable for the balance of the actual common expenses. Declarant obligations under this paragraph shall be considered assessments under s. 703.165.

AB647, s. 76 Section 76. 703.161 (2) (intro.) of the statutes is amended to read:

AB647,27,21 703.161 (2) Requirement. (intro.) An association annually shall adopt and distribute to all unit owners each unit owner an annual budget setting forth all of the following:

AB647, s. 77 Section 77. 703.161 (2) (g) of the statutes is created to read:

AB647,27,23 703.161 (2) (g) The amount assessed to the owner's unit.

AB647, s. 78 Section 78. 703.161 (3) of the statutes is created to read:

AB647,28,3 703.161 (3) Amendment. An association may adopt amendments to its budget during the course of its fiscal year, and shall use the same procedures and actions as are required for adoption of the original budget.

AB647, s. 79 Section 79. 703.165 (2) of the statutes is amended to read:

AB647,28,17 703.165 (2) Liability for assessments. A unit owner shall be liable for all assessments, or installments thereof, coming due while owning a unit, including any assessments coming due during the pendency of any claim by the unit owner against the association or during any period in which the unit is not occupied by the unit owner or is leased or rented to any other person. In a voluntary any grant, other than one resulting from the foreclosure of a first mortgage on the unit, the grantee shall be jointly and severally liable with the grantor for all unpaid assessments against the grantor for his or her share of the common expenses up to the time of the voluntary grant for which a statement of condominium lien is recorded filed, without prejudice to the rights of the grantee to recover from the grantor the amounts paid by the grantee for such assessments. Liability for assessments may not be avoided by waiver of the use or enjoyment of any common element or by abandonment of the unit for which the assessments are made.

AB647, s. 80 Section 80. 703.165 (3) of the statutes is amended to read:

AB647,29,8 703.165 (3) Assessments constitute lien. All assessments, until paid, together with interest on them and actual costs of collection, constitute a lien on the units on which they are assessed, if a statement of lien is filed within 2 3 years after the date the last installment of the assessment becomes due. The lien is effective against a unit at the time the last installment of the assessment became due regardless of when within the 2-year 3-year period it is filed. A statement of condominium lien is filed in the land records of the clerk of circuit court of the county where the unit is located, stating the description of the unit, the name of the record owner, the amount due, and the period for which the assessment was due. The clerk of circuit court shall index the statement of condominium lien under the name of the record owner in the judgment and lien docket. The statement of condominium lien shall be signed and verified by an officer or agent of the association as specified in the bylaws and then may be filed. On full payment of the amount of the assessment for which the lien is claimed, the unit owner shall be entitled to a satisfaction of the lien that may be filed with the clerk of circuit court.

AB647, s. 81 Section 81. 703.165 (5) (c) of the statutes is amended to read:

AB647,29,11 703.165 (5) (c) Mechanic's Construction liens filed prior to the making of the assessment.

AB647, s. 82 Section 82. 703.165 (7) of the statutes is amended to read:

AB647,30,2 703.165 (7) Enforcement of lien. A lien may be enforced and foreclosed by an association or any other person specified in the bylaws, in the same manner, and subject to the same requirements, as a foreclosure of mortgages on real property in this state, including the redemption time reductions under s. 846.101 for waiving a deficiency judgment. An association may recover costs and actual attorney fees. An association may, unless prohibited by the declaration, bid on the unit at foreclosure sale and acquire, hold, lease, mortgage, and convey the unit. Suit to recover a money judgment for unpaid common expenses shall be maintainable without foreclosing or waiving the lien securing the same. Suit for any deficiency following foreclosure may be maintained in the same proceeding. No action may be brought to foreclose the lien unless brought within 3 years following the recording filing of the statement of condominium lien. No action may be brought to foreclose the lien except after 10 days' prior written notice to the unit owner given by registered mail, return receipt requested, to the address of the unit owner shown on the books of the association.

AB647, s. 83 Section 83. 703.17 (1) of the statutes is amended to read:

AB647,30,16 703.17 (1) An Unless otherwise provided in the declaration, an association shall obtain insurance for the property against loss or damage by fire and such other hazards for not less than full replacement value of the property insured and a liability policy covering all claims commonly insured against. Insurance coverage shall be written on the property in the name of the association as trustee for each of the unit owners in the percentages established in the declaration. The declaration may establish an allocation of insurance proceeds that differs from the percentage interest in the common elements established under s. 703.13 (1). Premiums shall be common expenses. The insurance may include reasonable deductibles, and, if it does, the association shall determine by bylaw or rule whether a deductible shall be paid as a common expense or, if not, how it will be allocated. Provisions for such insurance shall be without prejudice to the right of each unit owner to insure his or her own unit for personal benefit.

AB647, s. 84 Section 84. 703.18 (2) (b) of the statutes is amended to read:

AB647,31,2 703.18 (2) (b) However, if a condominium is damaged to an extent more than the available insurance proceeds, the condominium shall be subject to an action for partition upon obtaining the written consent of the unit owners having 75% 75 percent or more of the votes. In the case of partition, the net proceeds of sale together with any net proceeds of insurance shall be considered as one fund and shall be divided among all unit owners in proportion to their percentage interests in the common elements as established under s. 703.13 (1) or, if the declaration so provides, in an allocation that differs from the percentage interests in the common elements, and shall be distributed in accordance with the priority of interests in each unit.