AB647: Bill Text

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.

AB647, s. 85 Section 85. 703.19 (3) (intro.) of the statutes is amended to read:

AB647,31,7 703.19 (3) Allocation of award; in absence of provisions in declaration or bylaws. (intro.) Unless otherwise provided for in a declaration or bylaws, any damages for a taking of all or part of a condominium shall, subject to sub. (6), be awarded as follows:

AB647, s. 86 Section 86. 703.19 (3) (b) of the statutes is amended to read:

AB647,31,13 703.19 (3) (b) Any award for the taking of limited common elements shall be allocated to the unit owners of the units to which the use of those limited common elements is restricted in proportion to their respective 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.

AB647, s. 87 Section 87. 703.19 (3) (c) of the statutes is amended to read:

AB647,31,19 703.19 (3) (c) In the event no reconstruction is undertaken, any award for the taking of common elements shall be allocated to all unit owners in proportion to their respective 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.

AB647, s. 88 Section 88. 703.20 (1) of the statutes is amended to read:

AB647,32,2 703.20 (1) Record keeping; availability for examination. An association shall keep detailed, accurate records using standard bookkeeping procedures of the receipts and expenditures affecting the common elements, specifying and itemizing the maintenance and repair expenses of the common elements and any other expenses incurred. The records, wherever maintained, are the property of the association. The records and the vouchers authorizing the payments shall be available for examination by the unit owners at convenient hours.

AB647, s. 89 Section 89. 703.22 (title) of the statutes is amended to read:

AB647,32,4 703.22 (title) Mechanics' Construction and suppliers' liens.

AB647, s. 90 Section 90. 703.22 (2) of the statutes is amended to read:

AB647,32,8 703.22 (2) Any mechanics' construction lien or suppliers' lien under subch. I of ch. 779 arising as a result of repairs to or improvements of a unit by a unit owner shall be a lien only against the unit.

AB647, s. 91 Section 91. 703.22 (3) of the statutes is amended to read:

AB647,32,18 703.22 (3) Any mechanics' construction or suppliers' lien under subch. I of ch. 779 arising as a result of repairs to or improvements of the common elements, if authorized in writing by the association, shall be paid by the association as a common expense and until paid shall be a lien against each unit in proportion to its percentage interest in the common elements. On payment of the proportionate amount by any unit owner to the lienor or on the filing of a written undertaking in the manner specified by s. 779.08, the unit owner shall be entitled to a release of his or her unit from the lien and the association shall not be entitled to assess his or her unit for payment of the remaining amount due for the repairs or improvements.

AB647, s. 92 Section 92. 703.24 (2) of the statutes is amended to read:

AB647,32,23 703.24 (2) Liability for unit owner violation. A unit owner who commits a violation is liable for any charges, fines, or assessments imposed by the association pursuant to the declaration or the association's bylaws or association rules as a result of the violation and may be subject to a temporary or permanent injunction.

AB647, s. 93 Section 93. 703.25 (3) of the statutes is renumbered 703.25 (3) (a) and amended to read:

AB647,33,6 703.25 (3) (a) A judgment for money or a blanket lien under s. 703.22 against an association shall be a lien against any property owned by the association, and against each of the condominium units in proportion to the liability of each unit owner for common expenses as established under the declaration in an amount not exceeding the market value of the unit, but not against any other property of any unit owner.

AB647, s. 94 Section 94. 703.25 (3) (b) of the statutes is created to read:

AB647,33,9 703.25 (3) (b) An action for a money judgment against an association shall not be the basis for filing a lis pendens against the units of the condominium.

AB647, s. 95 Section 95. 703.26 (1) of the statutes is amended to read:

AB647,33,19 703.26 (1) Declarant Declaration may reserve include right to expand. A declarant may reserve in the original declaration of a condominium a right to expand a the condominium by subjecting additional property to the condominium declaration adding land, one or more units, or both, in such a manner that as each additional property any added land or unit is subjected to the condominium declaration and, if any unit or units are added, the percentage of undivided interests in the common elements of the preceding and new property shall be are reallocated between the unit owners on the basis of the aggregate undivided interest in the common elements appertaining to the property among all units.

AB647, s. 96 Section 96. 703.26 (2) (a) of the statutes is amended to read:

AB647,33,23 703.26 (2) (a) A declaration establishing a condominium shall describe each parcel of property which, along with its square footage, that may be added to the condominium.

AB647, s. 97 Section 97. 703.26 (3) (a) of the statutes is amended to read:

AB647,34,7 703.26 (3) (a) If the conditions of sub. (2) are complied with, property may be added to a condominium if the declarant records an amendment to the declaration, showing the designation of the units being added, the new percentage interests of the unit owners, and the votes which that each unit owner may cast in the condominium as expanded, and records an addendum to the condominium plat that includes the detail and information concerning the new property as required in the original condominium plat.

AB647, s. 98 Section 98. 703.275 (4m) of the statutes is created to read:

AB647,34,15 703.275 (4m) Plat. The plat of the resultant condominium shall be titled as an addendum to the plat of that condominium, shall identify the plat of every condominium that is merged into the resultant condominium by name and recording data, and shall identify units both by their designations in the resultant condominium and by their designations in the merged condominiums. Any changes in the common elements, including the reservation of parts of them as limited common elements, shall be identified on the plat of the resultant condominium.