703.33(2)(a)2.
2. THESE DISCLOSURE MATERIALS GIVEN TO YOU AS REQUIRED BY LAW MAY BE RELIED UPON AS CORRECT AND BINDING. ORAL STATEMENTS MAY NOT BE LEGALLY BINDING.
703.33(2)(a)3.
3. YOU MAY AT ANY TIME WITHIN 5 BUSINESS DAYS FOLLOWING RECEIPT OF THESE DOCUMENTS, OR FOLLOWING NOTICE OF ANY MATERIAL CHANGES IN THESE DOCUMENTS, CANCEL IN WRITING THE CONTRACT OF SALE AND RECEIVE A FULL REFUND OF ANY DEPOSITS MADE.
703.33(2)(b)
(b)
Index. Following the material required in
par. (a), there shall appear an index of the disclosure materials. An index may begin on the cover sheet, if space permits, and be continued on the first and subsequent pages immediately following the cover sheet or may begin on the first page immediately following the cover sheet and continue on subsequent pages. An index shall be in substantially the following form:
The disclosure materials the seller is required by law to provide to each prospective condominium purchaser contains the following documents and exhibits:
1. Declaration. The declaration establishes and describes the condominium, the units and the common areas. The declaration begins on page ......
2. Bylaws. The bylaws contain rules which govern the condominium and effect the rights and responsibilities of unit owners. The bylaws begin on page ......
3. Articles of incorporation. The operation of a condominium is governed by the association, of which each unit owner is a member. Powers, duties, and operation of an association are specified in its articles of incorporation. The articles of incorporation begin on page ......
4. Management or employment contracts. Certain services are provided to the condominium through contracts with individuals or private firms. These contracts begin on page ......
5. Annual operating budget. The association incurs expenses for the operation of the condominium which are assessed to the unit owners. The operating budget is an estimate of those charges which are in addition to mortgage and utility payments. The budget begins on page ......
6. Leases. Units in this condominium are sold subject to one or more leases of property or facilities which are not a part of the condominium. These leases begin on page ......
7. Expansion plans. The declarant has reserved the right to expand the condominium in the future. A description of the plans for expansion and its effect on unit owners begins on page ......
8. Floor plan and map. The seller has provided a floor plan of the unit being offered for sale and a map of the condominium which shows the location of the unit you are considering and all facilities and common areas which are part of the condominium. The floor plan and map begin on page ......
703.33(2)(c)
(c)
Tables of contents and page numbers. In addition to an index required by
par. (b), there shall be provided tables of contents for the declaration, bylaws and articles of incorporation which shall identify each section of these documents and provide a page number for each section. Each section of disclosure material required in
sub. (1) shall, on the first page of that material, identify contents of that section but, with an exception of the declaration, bylaws and articles of incorporation, shall not be required to have a table of contents. Each page of disclosure materials shall contain a page number sufficient to identify it within the body of disclosure materials. Page numbers for the declaration, bylaws and articles of incorporation required in
par. (b) shall be the first page of the table of contents for that section. All other page numbers required in the index shall refer to the first page of that section on which the title appears.
703.33(2)(cm)
(cm)
Statements; building code violations. Except with respect to a conversion condominium with 4 or fewer units, in addition to the other information required by this section, the declarant of a conversion condominium shall provide to each purchaser all of the following:
703.33(2)(cm)1.
1. A statement by the declarant, based on a report prepared by an independent architect or engineer, describing the present condition of those structural components and mechanical and electrical installations that are material to the use and enjoyment of the building.
703.33(2)(cm)2.
2. A statement by the declarant of the expected useful life of each item reported on in
subd. 1. or a statement that no representations are made in that regard.
703.33(2)(cm)3.
3. A list of any outstanding notices of uncured violations of building code or other municipal regulations, together with the estimated cost of curing those violations.
703.33(2)(d)
(d)
Additions or exclusions. All materials required by this section shall be delivered to a prospective purchaser with disclosure materials required under
sub. (1) except that articles of incorporation, leases and expansion plans of the index need not be included if they clearly do not apply.
703.33(3)
(3) Change in material following delivery to purchaser. Any material furnished under
sub. (1) may not be changed or amended following delivery to a purchaser, if the change or amendment would affect materially the rights of the purchaser, without first obtaining approval of the purchaser. A copy of amendments shall be delivered promptly to the purchaser.
703.33(4)
(4) Purchaser's right to rescind contract of sale. Any purchaser may at any time within 5 business days following receipt of all information required under
sub. (1) and within 5 business days following receipt of all information required under
sub. (3), rescind in writing a contract of sale without stating any reason and without any liability on his or her part, and the purchaser is entitled to the return of any deposits made in account of the contract.
703.33(5)
(5) Untrue statement or omission of material fact. Any seller who in disclosing information required under
subs. (1) and
(2) makes any untrue statement of material fact or omits to state a material fact necessary in order to make statements made not misleading shall be liable to any person purchasing a unit from him or her. However, no action may be maintained to enforce any liability created under this section unless brought within one year after facts constituting a cause of action are or should have been discovered.
703.33(6)
(6) Waiver of purchaser's right. Rights of purchasers under this section may not be waived in the contract of sale and any attempt to waiver is void. However, if the purchaser proceeds to closing, the purchaser's right under this section to rescind is terminated.
703.33(7)
(7) Sale of unit for nonresidential purposes. Requirements of this section do not apply to a sale of any unit which is primarily intended to be occupied and used for nonresidential purposes.
703.33(8)
(8) Location of condominium immaterial. Requirements of this section shall apply to a sale of any unit offered for sale in this state without regard to the location of a condominium.
703.33 History
History: 1977 c. 407;
1985 a. 188.
703.33 Annotation
Tips for Representing Condominium Sellers. Hagopian. Wis. Law. May 1993.
703.34
703.34
Blanket mortgages and other blanket liens affecting a unit at time of first conveyance. As a condition to the first transfer of title to each unit:
703.34(1)
(1) Every mortgage and other lien affecting such unit, including the undivided interest in the common areas and facilities appurtenant to such unit, shall be paid and satisfied of record;
703.34(2)
(2) A unit being transferred and an undivided interest in the common areas and facilities appurtenant thereto shall be released by partial release duly recorded; or
703.34(3)
(3) 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 from the lien of a mortgage or other lien upon the payment of a sum certain.
703.34 History
History: 1977 c. 407.
703.35
703.35
Termination of contracts and leases. If entered into before the officers elected by the unit owners under
s. 703.10 take office, any management contract, employment contract, lease of recreational or parking areas or facilities, any contract or lease to which a declarant or any person affiliated with the declarant is a party and any contract or lease which is not bona fide or which was not commercially reasonable to unit owners when entered into under the circumstances then prevailing, may be terminated by the association or its executive board at any time without penalty upon not less than 90 days' notice to the other party thereto. This section does not apply to any lease the termination of which would terminate the condominium.
703.35 History
History: 1977 c. 407.
703.36
703.36
Provisions requiring employment of declarant or vendor to effect sale. Any provision of a declaration or other instrument made pursuant to this chapter which requires the owner of a unit to engage or employ the declarant or any subsidiary or affiliate of the declarant for the purpose of effecting a sale or lease of any unit is void. Any provision of any contract for a sale of any unit which requires a purchaser to engage or employ the vendor or any subsidiary or affiliate of the vendor for the purpose of effecting a sale or lease of any unit is void. This section applies to declarations, instruments and contracts made prior to and after August 1, 1978.
703.36 History
History: 1977 c. 407.
703.365
703.365
Small residential condominiums. 703.365(1)(a)(a) The declaration for a small residential condominium may provide that any or all of
subs. (2) to
(8) or any parts of those subsections apply to the small residential condominium.
703.365(1)(b)
(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, this chapter applies to the small residential condominium in the same manner and to the same extent as to other condominiums.
703.365(2)(b)
(b) The undivided percentage interest in a small residential condominium shall be allocated equally among the units.
703.365(2)(c)
(c) Each unit in a small residential condominium shall have one vote at meetings of the association.
703.365(2)(d)
(d) Commercial activity is permitted in a small residential condominium only to the extent that commercial activity is permitted in residences in a zoning ordinance adopted under
s. 59.69,
60.61,
61.35 or
62.23.
703.365(2)(e)
(e) All actions taken under this chapter which require a vote of units or unit owners must be approved by an affirmative vote or written consent of at least 75% of the unit votes of a small residential condominium, or a greater percentage if required by the declaration or this chapter.
703.365(3)(a)(a) Notwithstanding
s. 703.10 (2) (a), all aspects of the management, operation and duties of the association of a small residential condominium shall be delegated to the board of directors, which may retain a manager for the small residential condominium, and the bylaws shall so specify.
703.365(3)(b)
(b) Under
s. 703.10 (2) (c), notice of meetings shall be given in a manner best calculated to assure that actual notice is received by the owners of all units of a small residential condominium, and the bylaws shall so specify.
703.365(3)(c)
(c) Section 703.10 (2) (d) does not apply to a small residential condominium. The board of directors shall be composed of one representative from each unit, chosen by and from among the unit owners of that unit.
703.365(3)(d)
(d) All actions taken by the board of directors of a small residential condominium under this chapter must be approved by an affirmative vote or written consent of at least 75% of the board.
703.365(4)(a)(a) The survey under
s. 703.11 (2) (b) shall be an as-built survey of the property described in the declaration, building and other improvements on the land which are part of the small residential condominium.
703.365(4)(b)
(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 residential condominium. These plans may be supplemented by an agreement among all unit owners and mortgagees regarding the allocation of use and enjoyment of common elements which, in both its original and any amended form, shall be recorded.
703.365(5)(a)(a) Under
s. 703.15 (2), an association shall exist immediately upon establishment of a small residential condominium and the declarant shall have rights in the association only as an owner of a unit or units.
703.365(5)(b)
(b) Directors of a small residential condominium shall be chosen in accordance with
sub. (3) (c). The board of directors shall meet at least quarterly.
703.365(6)(a)(a) Paragraphs (b) to
(e) apply to a small residential condominium if any of the following criteria is met:
703.365(6)(a)1.
1. A proposed expenditure or action for the repair, maintenance or upkeep of the property, or for the operation of the property, is not approved by the board of directors and any unit owner believes the expenditure or action is necessary for the safety and proper use of the property or of the owner's unit.
703.365(6)(a)2.
2. An expenditure or action is approved by the board of directors and any unit owner believes the expenditure or action is contrary to the safety and proper use of the property or the owner's unit.
703.365(6)(b)
(b) The unit owner or owners challenging a decision of the board of directors described under
par. (a) 1. or
2. shall give written notice of the objection to all unit owners and mortgagees within 45 days after the decision but before any action is taken or expenditure is made. Upon receipt of this notice, the board of directors shall reconsider its decision and either affirm, reverse or modify the decision.
703.365(6)(c)
(c) The unit owner or owners may challenge the decision after reconsideration by the board of directors under
par. (b) only in an arbitration proceeding under
ch. 788. Acceptance of a conveyance of a small residential condominium which is subject to
pars. (b) to
(e) is deemed to constitute an agreement by the unit owner to submit challenges to decisions of the board of directors to arbitration.
703.365(6)(d)
(d) The board of directors, upon submission of the matter to arbitration as provided in
par. (c), shall name a proposed arbitrator. The unit owner or owners may accept the proposed arbitrator or propose a different arbitrator. If there is no agreement on a single arbitrator, the 2 arbitrators shall select a 3rd person and the 3 shall serve as an arbitration panel chaired by the 3rd person. The expense of the arbitration shall be shared equally by the association and the unit owner or owners challenging the decision of the board of directors.
703.365(6)(e)
(e) The arbitration award by the arbitration panel under
par. (d) shall permit or prohibit the decision and the decision shall not be implemented, if it is an affirmative action, until the award is final unless there is a bona fide emergency requiring it.
703.365(7)
(7) Expanding condominiums. Section 703.26 does not apply to a small residential condominium.
703.365(8)
(8) Disclosure requirements. The disclosure required for a small residential condominium under
s. 703.33 shall be limited to the disclosure required under
s. 703.33 (1) (a) to
(e), if applicable, and a copy of the condominium plat.
703.365 History
History: 1985 a. 188,
332;
1995 a. 201.
703.37
703.37
Interpretation. For purposes of interpretation of this chapter, a condominium is not a subdivision as defined in
ch. 236.
703.37 History
History: 1977 c. 407.
703.38
703.38
Applicability to existing condominiums. 703.38(1)(1) Except as otherwise provided in this section, this chapter is applicable to all condominiums, whether established before or after August 1, 1978. However, with respect to condominiums existing on August 1, 1978, the declaration, bylaws or condominium plat need not be amended to comply with the requirements of this chapter.
703.38(2)
(2) Section 703.10 (5) is not applicable to a condominium existing on August 1, 1978 if the existing declaration or bylaws provide otherwise.
703.38(3)
(3) Section 703.15 (4) (c) and
(d) 2. are not applicable to a condominium existing on August 1, 1978 if the existing declaration or bylaws provide otherwise.
703.38(4)
(4) Section 703.18 is applicable only to those condominiums which are damaged or destroyed on or after August 1, 1978.
703.38(5)
(5) Section 703.19 is applicable only to those eminent domain proceedings filed on or after August 1, 1978.
703.38(6)
(6) Unless a declarant elects to conform to the requirements of
s. 703.26,
s. 703.26 is not applicable to those condominiums created prior to August 1, 1978 under circumstances where the declarant reserved the right to expand the condominium.
703.38(7)
(7) Section 703.33 is applicable only to contracts executed after August 1, 1978.
703.38(8)
(8) Section 703.35 is applicable only to leases or management and similar contracts executed after August 1, 1978.
703.38(9)
(9) Unless the declaration is amended as provided under s.
703.09 (2), 1983 stats., to provide otherwise, a condominium created prior to April 22, 1986, is subject to s.
703.09 (2), 1983 stats., rather than
s. 703.09 (2).
703.38(10)
(10) Section 703.365 applies to condominiums created on or after April 22, 1986, and to condominiums created before April 22, 1986, that elect to be subject to
s. 703.365.
703.38(11)
(11) Section 703.255 applies to condominiums created after December 31, 1986.
703.38 History
History: 1977 c. 407;
1985 a. 188.
