AB647: Bill Text

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AB647, s. 116 Section 116. 703.365 (6) of the statutes is repealed and recreated to read: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

AB647,43,11 (7) Tolling statute of limitations. The treatment of section 703.15 (6) of the statutes first applies to actions arising on the effective date of this subsection.

AB647,43,13 (8) Declarant obligations. The treatment of section 703.16 (2) (b) of the statutes first applies to obligations arising on the effective date of this subsection.

AB647,43,15 (9) Budgets. The treatment of section 703.161 (2) (intro.) and (g) of the statutes first applies to budgets adopted on the effective date of this subsection.

AB647,43,16 (10) Assessment liens.

AB647,43,18 (a) The treatment of section 703.165 (2) of the statutes first applies to foreclosures commenced on the effective date of this paragraph.

AB647,43,21 (b) The treatment of section 703.165 (3) of the statutes first applies to assessments for which the last installment becomes due on the effective date of this paragraph.

AB647,43,24 (11) Blanket liens. The renumbering and amendment of section 703.25 (3) of the statutes first applies to blanket liens for which lien statements are filed on the effective date of this subsection.

AB647,44,2 (12) Actions for money judgment. The creation of section 703.25 (3) (b) of the statutes first applies to actions commenced on the effective date of this subsection.

AB647,44,5 (13) Resultant condominium plats. The treatment of section 703.275 (4m) of the statutes first applies to plats of resultant condominiums that are recorded on the effective date of this subsection.

AB647,44,9 (14) Removals from condominium provisions. The treatment of sections 703.28 (1), (1m), (2), (2m), (3), and (4) and 703.29 of the statutes first applies to removals with respect to which removal instruments are recorded on the effective date of this subsection.

AB647,44,10 (15) Small condominiums.

AB647,44,12 (a) The treatment of section 703.365 (6) and (12) (b) of the statutes first applies to actions or expenditures that are proposed on the effective date of this paragraph.

AB647,44,15 (b) The treatment of section 703.365 (7), (10), and (12) (a) of the statutes first applies to small condominiums for which condominium instruments are recorded on the effective date of this paragraph.

AB647,44,19 (16) Local review of instruments before recording. The renumbering of section 703.115 (1) of the statutes and the creation of section 703.115 (1c) of the statutes first apply to condominium instruments that are submitted for recording on the effective date of this subsection.

AB647,44,20 (End)