AB647: Bill Text

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.

AB647, s. 99 Section 99. 703.28 (1) of the statutes is amended to read:

AB647,34,23 703.28 (1) All of the unit owners may remove all or any part of the property may be removed from the provisions of this chapter by a removal instrument, duly recorded, provided that the holders of all liens affecting any of the units consent thereto or agree, in either case by instruments duly recorded, that their liens be transferred to the percentage of the undivided interest of the unit owner in the property as an amendment to the declaration, as provided in this section, and as an addendum to the plat.

AB647, s. 100 Section 100. 703.28 (1m) of the statutes is repealed.

AB647, s. 101 Section 101. 703.28 (2) of the statutes is repealed.

AB647, s. 102 Section 102. 703.28 (2m) of the statutes is created to read:

AB647,35,10 703.28 (2m) If all of the property is being removed, the removal instrument must be approved by all of the unit owners and consented to by the holders of all liens affecting the condominium or any unit. The removal instrument shall provide that any lien against a unit is transferred to the percentage interest of the owner of the unit that is encumbered by the lien and that any lien against the condominium as a whole is allocated among the units in accordance with s. 703.25 (3). Upon removal of the property from the provisions of this chapter, the property shall be owned in common by the unit owners. The percentage interest of each unit owner shall be determined as specified in the declaration.

AB647, s. 103 Section 103. 703.28 (3) of the statutes is created to read:

AB647,35,13 703.28 (3) If less than all of the property is being removed, all of the following apply:

AB647,35,15 (a) If the removal results from the exercise of the power of eminent domain, s. 703.195 applies.

AB647,35,17 (b) 1. Except as provided in par. (c), the removal instrument must specify all of the following:

AB647,35,18 a. The part of the property that is being removed.

AB647,35,25 b. Who will own the part of the property that is being removed after its removal. If the property is to be owned differently from the manner in which it was owned immediately before removal, the removal instrument shall contain language of conveyance to the party or parties that will own the property after removal. The conveyance language shall be effective to vest ownership in the party or parties even if fewer than all of the unit owners of the condominium have joined in the removal instrument.

AB647,36,2 c. The consideration, if any, that is being given to the association for the removal.

AB647,36,7 2. A removal instrument under this paragraph must be signed by the unit owners holding at least 80 percent of the aggregate of the votes established under s. 703.09 (1) (f), or a greater percentage if so provided in the declaration, including all of the owners of units that are being removed, and consented to by the holders of all liens affecting the condominium or any unit.

AB647,36,10 3. Removal of less than all of the property is permitted only if, following removal, the condominium and the property removed are in compliance with the laws and ordinances regulating zoning and land division.

AB647,36,14 4. At the time a removal instrument under this paragraph is recorded, the party recording the instrument shall also record an addendum to the condominium plat containing the same details and information concerning the remaining condominium property as was required in the original condominium plat.

AB647,36,18 (c) If the part being removed does not include all of a unit, all of a limited common element, or a part of the common elements that is essential to the use and enjoyment of or access to any unit, the removal instrument must specify all of the following:

AB647,36,19 1. The part of the property that is being removed.

AB647,36,20 2. Who will own the part of the property that is being removed after its removal.

AB647,36,22 3. The consideration received for the property being removed and how the consideration will be used.

AB647,37,2 (d) If the property that is being removed is owned by the association and is not any part of a unit or the common elements, its transfer shall be as provided in the declaration or association bylaws and shall not affect the percentage interests in the common elements.

AB647, s. 104 Section 104. 703.28 (4) of the statutes is created to read:

AB647,37,8 703.28 (4) A removal instrument under sub. (3) (b) or (c) must meet the requirements for an amendment to the declaration. An amendment to the declaration and an addendum to the condominium plat must be recorded to reflect the removal. The part that is removed must result in a legal parcel for its intended use.

AB647, s. 105 Section 105. 703.29 of the statutes is repealed.

AB647, s. 106 Section 106. 703.33 (1) (intro.) of the statutes is amended to read:

AB647,37,13 703.33 (1) Material to be furnished by seller to purchaser before closing. (intro.) Not later than 15 days prior to the closing of the sale of a residential unit to a member of the public, the seller shall furnish to the purchaser the following:

AB647, s. 107 Section 107. 703.33 (9) of the statutes is created to read:

AB647,37,17 703.33 (9) Electronic disclosure. The information required under subs. (1) and (2) may be disclosed electronically if the purchaser, in the manner prescribed by law, agrees to that method of transmission.

AB647, s. 108 Section 108. 703.34 (title) of the statutes is amended to read:

AB647,37,20 703.34 (title) Blanket mortgages and other blanket liens affecting a unit at time of first conveyance; mortgagee approvals.

AB647, s. 109 Section 109. 703.34 (intro.) (except 703.34 (title)) of the statutes is renumbered 703.34 (1m) (intro.) and amended to read:

AB647,37,24 703.34 (1m) (intro.) As a condition to the first transfer of title to each unit, one of the following must be met:

AB647, s. 110 Section 110. 703.34 (1) of the statutes is renumbered 703.34 (1m) (a) and amended to read:

AB647,38,5 703.34 (1m) (a) Every mortgage and other lien affecting such the unit, including the undivided interest in the common areas and facilities appurtenant to such the unit, shall be paid and satisfied of record;.

AB647, s. 111 Section 111. 703.34 (2) of the statutes is renumbered 703.34 (1m) (b) and amended to read:

AB647,38,10 703.34 (1m) (b) A The unit being transferred and an undivided interest in the common areas and facilities appurtenant thereto to the unit shall be released by partial release duly recorded; or.

AB647, s. 112 Section 112. 703.34 (2m) of the statutes is created to read:

AB647,38,19 703.34 (2m) If a mortgagee whose consent or approval is required for an action under this chapter cannot be contacted with the use of reasonable diligence, the association may seek the right to proceed with the proposed action under ch. 841, notwithstanding the missing consent or approval. In determining whether to permit the action for which mortgagee consent or approval has not been obtained, the court shall consider whether the action is needed to permit the effective management and operation of the condominium and any impact the action would have on the value of the units in the condominium as security for mortgages on the units.

AB647, s. 113 Section 113. 703.34 (3) of the statutes is renumbered 703.34 (1m) (c) and amended to read:

AB647,38,25 703.34 (1m) (c) A mortgage or other lien shall provide for or be amended to provide for a release of the unit and the undivided interest in the common areas and facilities appurtenant thereto to the unit from the lien of a mortgage or other lien upon the payment of a sum certain.

AB647, s. 114 Section 114. 703.365 (1) (b) of the statutes is amended to read:

AB647,39,6 703.365 (1) (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, and except as provided in sub. (9), this chapter applies to the small condominium in the same manner and to the same extent as to other condominiums.

AB647, s. 115 Section 115. 703.365 (4) (b) of the statutes is amended to read:

AB647,39,13 703.365 (4) (b) The floor plans under s. 703.11 (2) (c) need only show the location and designation of each unit in the building and the limited common elements appurtenant to each unit of a small condominium. These plans may be supplemented by an agreement among all unit owners and their first mortgagees, if any, regarding the allocation of use and enjoyment of common elements, which agreement, in both its original and any amended form, shall be recorded.

AB647, s. 116 Section 116. 703.365 (6) of the statutes is repealed and recreated to read: