AB647: Bill Text

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:

AB647,39,19 703.365 (6) Association operations; arbitration. (a) With respect to operational decisions in a small condominium, including decisions concerning repairs, maintenance, the exterior appearance, and expenditures, the association may submit a proposed action to arbitration under ch. 788 if any of the following applies:

AB647,39,21 1. The required majority under the declaration or bylaws for the proposed action cannot be achieved.

AB647,39,23 2. The proposed action would involve unbudgeted expenditures per unit in excess of $2,500 in any one year or $5,000 overall.

AB647,40,2 (b) 1. A unit owner in a small condominium may propose in writing an action or expenditure by the association that the unit owner believes is necessary for the proper operation of the condominium. The association shall act on any unit owner proposal in a timely manner.

AB647,40,7 2. If the association does not adopt the unit owner's proposal, cannot achieve the majority required to take an action, or levies assessments for unbudgeted expenditures in excess of the amounts specified in par. (a) 2., a unit owner may request reconsideration of the decision and, if unsatisfied with the result, submit the issue to arbitration under ch. 788.

AB647,40,10 (c) Notice of arbitration under par. (a) or (b) shall be given to the first mortgagee of any unit subject to a mortgage. The results of the arbitration shall be final as to the matter under consideration.

AB647,40,12 (d) 1. Costs of the arbitration under par. (a) shall be the responsibility of the association.

AB647,40,13 2. Costs of the arbitration under par. (b) shall be paid as follows:

AB647,40,15 a. If the challenge is wholly denied, costs of the arbitration shall be borne by the unit owner submitting the issue to arbitration.

AB647,40,16 b. If the challenge is wholly upheld, costs shall be borne by the association.

AB647,40,18 c. In all other cases, the costs shall be shared equally by the unit owner and the association.

AB647,40,21 (d) The association may adopt rules establishing arbitration procedures. Acceptance of a deed to a unit in a small condominium constitutes agreement to the resolution of disputes over operational decisions by arbitration.

AB647, s. 117 Section 117. 703.365 (7) of the statutes is renumbered 703.365 (9) and amended to read:

AB647,41,3 703.365 (9) Expanding condominiums. Section 703.26 does not apply to a small condominium, and the declaration for a small condominium may not provide that s. 703.26 applies to the small condominium.

AB647, s. 118 Section 118. 703.365 (10) of the statutes is created to read:

AB647,41,9 703.365 (10) Resident agent; taxes. In the declaration for a small condominium, the declarant shall designate one of the unit owners as the resident agent of the condominium and shall specify how real estate taxes for the year the condominium is created will be divided among the units if different from the percentage interests in the common elements.

AB647, s. 119 Section 119. 703.365 (11) of the statutes is created to read:

AB647,41,13 703.365 (11) Utility easements. The units and common elements of a small condominium are subject to cross easements for any utility services to other units in the condominium.

AB647, s. 120 Section 120. 703.365 (12) of the statutes is created to read:

AB647,41,16 703.365 (12) Two-unit condominiums. (a) Unless the declaration provides otherwise, units in a 2-unit small condominium shall be insured by the same insurer.

AB647,41,21 (b) Any improvement, decoration, or repair to the exterior of either unit of a 2-unit small condominium must be agreed to by the owners of both units. In the event of a dispute, the matter may be submitted to the board of directors, and the decision of the board of directors may be challenged in an arbitration proceeding in the manner provided in sub. (6) (b) and (c).

AB647, s. 121 Section 121. 709.02 (2) (intro.) of the statutes is amended to read:

AB647,42,2 709.02 (2) (intro.) In regard to a transfer of a condominium unit, as defined in s. 703.02 (15), if the owner is required to provide the information under sub. (1), the owner shall furnish, in addition to and at the same time as the information required under sub. (1), all the following information as an addendum to the real estate condition report under s. 709.03:

AB647, s. 122 Section 122. 709.02 (2) (d) of the statutes is amended to read:

AB647,42,5 709.02 (2) (d) A Unless excused by s. 703.365, a copy of the executive summary required under s. 703.33 (1) (h).

AB647, s. 123 Section 123. Initial applicability.

AB647,42,10 (1) General application. The treatment of sections 703.02 (15), 703.03, 703.15 (2) (a), (b), and (d), and 703.26 (1), (2) (a), and (3) (a) of the statutes first applies to condominiums for which condominium instruments are recorded on the effective date of this subsection.

AB647,42,14 (2) Conversion to condominium. The treatment of section 703.08 (1) (intro.), (2) (intro.), and (3) of the statutes first applies to conversions of residential real properties to condominiums for which notices are delivered on the effective date of this subsection.

AB647,42,17 (3) Compensation recovery. The treatment of section 703.09 (3) (bm) of the statutes first applies to actions to recover compensation with respect to declaration amendments that are recorded on the effective date of this subsection.

AB647,42,19 (4) Director terms. The treatment of section 703.10 (2) (d) of the statutes first applies to bylaws adopted or amended on the effective date of this subsection.

AB647,42,22 (5) Use of common surpluses. The treatment of sections 703.13 (2) and 703.16 (1) of the statutes first applies to common surpluses arising on the effective date of this subsection.

AB647,42,23 (6) Unit boundary relocations, separations, and mergers.

AB647,43,3 (a) The treatment of section 703.13 (6) (b) and (c) of the statutes first applies to unit boundary relocations for which application is made on the effective date of this paragraph.

AB647,43,7 (b) The treatment of section 703.13 (7) (cm) and (dm) of the statutes, the renumbering and amendment of section 703.13 (7) (b), (c), and (d) of the statutes, and the creation of section 703.13 (7) (b) 1. of the statutes first apply to unit separations for which application is made on the effective date of this paragraph.

AB647,43,9 (c) The treatment of section 703.13 (8) (b) of the statutes first applies to unit mergers for which application is made on the effective date of this paragraph.