Chapter 703

703.245(5) (5) Direct negotiation conference.

703.245(5)(a) (a) If a unit owner delivers a request under sub. (4) to an association, the association shall participate in a direct negotiation conference with the unit owner as provided under par. (c).

703.245(5)(b) (b) If an association delivers a request under sub. (4) to a unit owner, the unit owner may, but is not required to, participate in a direct negotiation conference with the association as provided under par. (c).

703.245(5)(c) (c) If an association and a unit owner participate in a direct negotiation conference under this subsection, the association and unit owner shall, no later than 30 days after the request under sub. (4) is delivered, meet at a mutually agreed upon time and place to engage in good faith direct negotiation to resolve the dispute described in the notice of claim delivered under sub. (3). The association and unit owner shall participate in the conference personally or by a representative or agent having authority to act with respect to the dispute and to bind the party represented. The association and unit owner may conduct the conference through the use of any means of communication by which any of the following occurs:

703.245(5)(c)1. 1. All participating individuals may simultaneously hear each other during the conference.

703.245(5)(c)2. 2. All communication during the conference is immediately transmitted to each participating individual, and each participating individual is able to immediately send messages to all other participating individuals.

703.245(6) (6) Circuit court action. If an association or unit owner sends a notice of claim under sub. (3), the association or unit owner may file the claim in circuit court when the earliest of the following occurs:

703.245(6)(a) (a) No party timely delivers a request for a direct negotiation conference under sub. (4).

703.245(6)(b) (b) The parties fail to resolve the dispute described in the notice within 10 business days after participating in a direct negotiation conference under sub. (5) (c).

703.245(6)(c) (c) The parties fail to conduct a direct negotiation conference under sub. (5) (c) within the time limit provided under sub. (5) (c).

703.245(6)(d) (d) A party notifies the other party that direct negotiation under sub. (5) (c) has not resulted in a resolution of the dispute described in the notice and the notifying party is terminating direct negotiations.

703.245(7) (7) Tolling of statutes of limitations. Any statute of limitations applicable to a claim is tolled for the period beginning on the date an association or unit owner delivers notice of the claim under sub. (3) and ending on the date the association or unit owner is allowed under sub. (6) to file the claim in circuit court.

703.245(8) (8) Breach of settlement agreement; fee shifting. If an association and a unit owner resolve the dispute to which a claim described under sub. (3) (a) relates through direct negotiation under sub. (5) (c), the association and unit owner may document that resolution in a written settlement agreement signed by them. If the association or unit owner materially breaches any material part of the agreement, subs. (2) to (6) do not apply to a claim of the nonbreaching party against the breaching party related to the breach, and the nonbreaching party may file a claim in circuit court related to the breach. If the nonbreaching party prevails in the circuit court action under this subsection, the circuit court shall award the nonbreaching party costs and, notwithstanding s. 814.04 (1), reasonable attorney fees.

703.245(9) (9) Applicability.

703.245(9)(a) (a) Exempt claims. This section does not apply to any of the following claims:

703.245(9)(a)1. 1. A claim by an association related to unpaid assessments, including filing a statement of lien under s. 703.165 (3) and an action to collect unpaid assessments or enforce a lien under s. 703.165 (7).

703.245(9)(a)2. 2. A claim by an association related to a violation, as defined in s. 703.24 (1), by a tenant for which notice is given under s. 703.24 (4).

703.245(9)(a)3. 3. A claim by a unit owner related to a decision of the board of directors of a small condominium described under s. 703.365 (6) (a).

703.245(9)(a)4. 4. A claim for a temporary injunction or other similar emergency equitable relief under s. 813.02.

703.245(9)(b) (b) Applicability to new and existing condominiums. This section does not apply to a condominium if the declaration of the condominium provides a process for resolving disputes through direct negotiation, mediation, or arbitration.

703.245 History History: 2019 a. 168.

703.25 703.25 Tort and contract liability.

703.25(1) (1) An action for tort alleging a wrong done by any agent or employee of a declarant or of an association, or in connection with the condition of any portion of a condominium which a declarant or an association has the responsibility to maintain, shall be brought against the declarant or the association, as the case may be. No unit owner shall be precluded from bringing such an action by virtue of its ownership of an undivided interest in the common elements or by reason of its membership in the association or its status as an officer.

703.25(2) (2) An action arising from a contract made by or on behalf of an association shall be brought against the association, or against the declarant if the cause of action arose during the exercise by the declarant of control reserved under the declaration. No unit owner shall be precluded from bringing such an action by reason of its membership in the association or its status as an officer.

703.25(3) (3) A judgment for money 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.

703.25 History History: 1977 c. 407.

703.25 Annotation Sub. (3) and s. 840.10 (1) permit the filing of a lis pendens in an action for a money judgment against a condominium association as a judgment will be a lien against each condominium unit although their owners are not defendants in the action. Interlaken Service Corp. v. Interlaken Condominium Ass’n, 222 Wis. 2d 299, 588 N.W.2d 262 (Ct. App. 1998), 97-1107.

703.26 703.26 Expanding condominiums.

703.26(1) (1) Declarant may reserve right to expand. A declarant may reserve the right to expand a condominium by subjecting additional property to the condominium declaration in such a manner that as each additional property is subjected to the condominium declaration, the percentage of undivided interests in the common elements of the preceding and new property shall be reallocated between the unit owners on the basis of the aggregate undivided interest in the common elements appertaining to the property.

703.26(2) (2) Conditions to which reservation subject. A reservation of the right to expand a condominium is subject to all of the following conditions:

703.26(2)(a) (a) The declaration establishing the condominium describes each parcel of property that may be added to the condominium.

703.26(2)(b) (b)

703.26(2)(b)1. 1. The declaration establishing the condominium shows all of the following:

703.26(2)(b)1.a. a. The maximum number of units that may be added to the condominium.

703.26(2)(b)1.b. b. The percentage interests in the common elements, the liabilities for common expenses, and the rights to common surpluses appurtenant to each unit following the addition of property to the condominium.

703.26(2)(b)1.c. c. The number of votes appurtenant to each unit following the addition of property to the condominium, if added.

703.26(2)(b)2. 2. The information under subd. 1. b. and c. may be shown by reference to a formula or other appropriate method of determining them following each expansion of the condominium.

703.26(2)(c) (c) The plat for the original condominium includes the outlines of the land and, in general terms, the location of the buildings and common elements of new property that may be added to the condominium.

703.26(2)(d) (d) The right to expand the condominium is reserved in the declaration for a period not exceeding 10 years from the date of recording of the declaration.

703.26(3) (3) Recording amendments and addenda.

703.26(3)(a) (a) If the conditions of sub. (2) are met, property may be added to a condominium if the declarant records all of the following:

703.26(3)(a)1. 1. An amendment that shows the new percentage interests of the unit owners and the votes that each unit owner may cast in the condominium as expanded.

703.26(3)(a)2. 2. An addendum that includes the detail and information concerning the new property that is required for a plat under s. 703.11 (2), (3), and (4).

703.26(3)(b) (b) On recording of an amendment and an addendum under par. (a), each unit owner, by operation of law, has all of the following:

703.26(3)(b)1. 1. The percentage interests in the common elements, liabilities in the common expenses, and rights to common surpluses, as set forth in the amendment.

703.26(3)(b)2. 2. The number of votes appurtenant to the unit owner’s unit, as set forth in the amendment.

703.26(3)(c) (c) Following any expansion, the interest of any mortgagee shall attach, by operation of law, to the new percentage interests in the common elements appurtenant to the unit on which it is a lien.

703.26(3)(d) (d) Property included in a reservation of the right to expand is not subject to the condominium declaration and is not part of the condominium until an amendment and addendum adding the property to the condominium are recorded.

703.26 History History: 1977 c. 407; 1997 a. 333; 2021 a. 168.

703.26 Annotation Substantial compliance with formal requirements as permitted by s. 703.30 (2) is limited to the condominium status of the property and title of the unit owners. It does not apply to a project’s status as an expanding condominium under this section. Rock Lake Estates Unit Owners Ass’n v. Town of Lake Mills, 195 Wis. 2d 348, 536 N.W.2d 415 (Ct. App. 1995), 94-2488.

703.265 703.265 Addendum to plat to reflect changes in building codes or zoning ordinances.

703.265(1) (1) If the revision or adoption of a building code or zoning ordinance prevents or substantially affects the construction of a unit or common elements as platted, the declarant may reasonably modify the condominium plat, by addendum, to the extent necessary to comply with the code or ordinance in order to construct the unit or common elements.

703.265(2) (2) If the revision or adoption of a building code or zoning ordinance prevents or substantially affects the reconstruction of a unit or common element as platted, the declarant, unit owner, or association, as appropriate, may reasonably modify the condominium plat, by addendum, to the extent necessary to comply with the code or ordinance in order to reconstruct the unit or common elements.

703.265(3) (3) An addendum made under this section shall be recorded as provided under s. 703.095 (2).

703.265 History History: 2003 a. 283; 2021 a. 168.

703.265 Note NOTE: 2003 Wis. Act 283, which affected this section, contains extensive explanatory notes.

703.27 703.27 Zoning and building regulations.

703.27(1) (1) A zoning or other land use ordinance or regulations may not prohibit the condominium form of ownership or impose any requirements upon a condominium that it would not impose if the development were under a different form of ownership. No provision of a state or local building code may be applied differently to a building in a condominium than it would be applied if the building were under a different form of ownership unless the different application is expressly permitted in that provision and the different application is reasonably related to the nature of condominium ownership. No subdivision ordinance may apply to any condominium unless the ordinance is, by its express terms, applicable to condominiums and the application is reasonably related to the nature of condominium ownership.

703.27(2) (2) No county, city, or other jurisdiction may enact any law, ordinance, or regulation that would impose a greater burden or restriction on a condominium or provide a lower level of services to a condominium than would be imposed or provided if the condominium were under a different form of ownership.

703.27 History History: 1977 c. 407; 2003 a. 283.

703.27 Note NOTE: 2003 Wis. Act 283, which affected this section, contains extensive explanatory notes.

703.275 703.275 Merger or consolidation of condominiums.

703.275(1c) (1c) Definitions. In this section:

703.275(1c)(a) (a) “Preexisting condominium” means a condominium that existed before a merger or consolidation under this section.

703.275(1c)(b) (b) “Restatement of the declaration of a resultant condominium” means an amendment to the declaration of the preexisting condominium that bears the same name as the resultant condominium that complies with s. 703.09.

703.275(1c)(c) (c) “Resultant condominium” means a condominium that results from a merger or consolidation under this section.

703.275(1c)(d) (d) “Resultant condominium plat” means an addendum to the plat of the preexisting condominium that bears the same name as the resultant condominium that complies with s. 703.11.

703.275(1m) (1m) Agreement; legal effect.

703.275(1m)(a) (a) Any 2 or more condominiums, including 2 or more small condominiums or any combination of small condominiums and other condominiums, by agreement of the unit owners as provided in this section, may be merged or consolidated into a single condominium. Unless the agreement otherwise provides, the resultant condominium is, for all purposes, the legal successor of all of the preexisting condominiums and the operations and activities of all associations of the preexisting condominiums shall be merged or consolidated into a single association which shall hold all powers, rights, obligations, assets and liabilities of the preexisting associations. The resultant condominium shall bear the name of one of the preexisting condominiums.

703.275(1m)(b) (b)

703.275(1m)(b)1. 1. Except as otherwise provided in this section, a resultant condominium may be created only by recording all of the following, as provided under s. 703.07:

703.275(1m)(b)1.a. a. A restatement of the declaration of the resultant condominium that includes the merger or consolidation agreement.

703.275(1m)(b)1.b. b. A resultant condominium plat.

703.275(1m)(b)2. 2.

703.275(1m)(b)2.a. a. The documents under subd. 1. shall be presented together to the register of deeds for recording.

703.275(1m)(b)2.b. b. The register of deeds may not record a resultant condominium plat without the restatement of the declaration of the resultant condominium and the merger or consolidation agreement.

703.275(1m)(b)2.c. c. On the plat of each preexisting condominium that is merged or consolidated to create a resultant condominium, the register of deeds shall reference the document number of the resultant condominium plat and, if the plat of the resultant condominium is assigned a volume and page number, the volume and page where the resultant condominium plat is recorded and shall note that the preexisting condominium was merged or consolidated. In a county that maintains a tract index pursuant to s. 59.43 (12m), the register of deeds shall make references to document numbers in the tract index.

703.275(2) (2) Reallocation of interests.

703.275(2)(ac) (ac) In this subsection, “allocated interests” means the undivided percentage interest in the common elements, the liability for common expenses, and the number of votes at meetings of the association appurtenant to each unit.

703.275(2)(bc) (bc) The merger or consolidation agreement shall provide for the reallocation of the allocated interests among the units of the resultant condominium. The agreement may not change the ratio that exists before the merger or consolidation between the allocated interests of any unit and the allocated interests of any other unit in the same preexisting condominium. The agreement shall state one of the following:

703.275(2)(bc)1. 1. The reallocations or the formulas upon which they are based.

703.275(2)(bc)2. 2. The percentage of the total of allocated interests of the new condominium which are allocated to all of the units comprising each of the preexisting condominiums.

703.275(3) (3) Agreement; other provisions. The merger or consolidation agreement may contain any provisions consistent with this chapter in addition to those specified in sub. (2).

703.275(4) (4) Votes. The merger or consolidation agreement is effective if the agreement is approved by the unit owners of units to which at least 75 percent of the votes in each preexisting association are allocated. If the declaration of a preexisting association specifies that a percentage greater than 75 percent of the votes in that association is required to approve a merger or consolidation agreement, the greater percentage applies to the vote of that association. A declaration of a preexisting association may specify a smaller percentage and the smaller percentage applies to the vote of that association only if all of the units in the preexisting condominium are restricted exclusively to nonresidential uses.

703.275 History History: 1985 a. 188; 1997 a. 333; 2003 a. 283; 2017 a. 102; 2021 a. 168.

703.275 Note NOTE: 2003 Wis. Act 283, which affected this section, contains extensive explanatory notes.

703.28 703.28 Removal from provisions of this chapter.

703.28(1) (1) All of the unit owners may remove all or any part of the property 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.

703.28(1m) (1m) Before a certified survey map, condominium plat, subdivision plat or other plat may be recorded and filed for property that is subject to a condominium declaration, the condominium shall first be removed from the provisions of this chapter by recording a removal instrument. This subsection does not apply to a merger or consolidation under s. 703.275.