In this case, the property owners' conduct in establishing a condominium association with the legal name Bibs Resort Condominium Inc. and converting their Bib's Resort property to a condominium named Bibs Resort Condominium manifested an implied agreement to transfer the name “Bibs Resort" to the association. Because the property owners did not own the name “Bibs Resort" after the creation of the condominium and association, they could not have sold the name to a third-party as part of a later transaction. Ritter v. Farrow, 2019 WI App 46
, 388 Wis. 2d 421
, 933 N.W.2d 167
Notice prior to conversion of residential property to condominium. 703.08(1)(1)
Residential real property may not be converted to a condominium unless the owner of the residential real property gives prior written notice of the conversion to each of the tenants of the building or buildings scheduled for conversion. During the 60-day period immediately following the date of delivery of the notice a tenant has the first right to purchase the unit, if the unit is offered for sale at any time during that period, for any of the following:
The price at which the unit is being offered on the market.
The price contained in any accepted offer to purchase the unit.
The price otherwise agreed to by the tenant and the seller.
A tenant may not be required to vacate the property during the 120-day period immediately following the date of delivery of the notice required under sub. (1)
A tenant may waive in writing his or her first right of purchase under sub. (1)
, his or her right to remain on the property under sub. (2)
, or both.
History: 1977 c. 407
; 2003 a. 283
NOTE: 2003 Wis. Act 283
, which affected this section, contains extensive explanatory notes.
Condominium conversion and tenant rights — Wisconsin statutes section 703.08: What kind of protection does it really provide. Wynn. 63 MLR 73 (1979).
A condominium declaration shall contain:
The name and address of the condominium and the name shall include the word “condominium" or be followed by the words “a condominium".
A description of the land on which the condominium is, or is to be, located, together with a statement of the owner's intent to subject the property to the condominium declaration established under this chapter.
A description of each unit, including its perimeters, location, and any other data sufficient to identify the unit with reasonable certainty.
A general description of the common elements together with a designation of those portions of the common elements that are limited common elements and the unit to which the use of each is restricted. Fixtures designed to serve a single unit, located contiguous to the unit's boundaries, are deemed limited common elements appertaining to that unit exclusively and need not be shown or designated as limited common elements in the condominium instruments.
The percentage interests appurtenant to each unit.
The number of votes at meetings of the association of unit owners appurtenant to each unit.
Statement of the purposes for which the building and each of the units are intended and restricted as to use.
Provision as to the percentage of votes by the unit owners which shall be determinative of whether to rebuild, repair, restore or sell the property in the event of damage or destruction of all or part of the property.
Any further details in connection with the property which the person executing the declaration deems desirable to set forth consistent with this chapter, except those provisions which are required to be included in the bylaws.
A condominium declaration shall be signed by the owners of the property and any first mortgagee of the property or the holder of an equivalent security interest in the property in the same manner as required in conveyances of real property.
Except as provided in sub. (4)
and ss. 703.093
, 703.13 (6) (c)
and (8) (b)
, and 703.26
, a condominium declaration may be amended with the written consent of at least two-thirds of the aggregate of the votes established under sub. (1) (f)
or a greater percentage if provided in the declaration. An amendment becomes effective when it is recorded in the same manner as the declaration. The document submitting the amendment for recording shall state that the required consents and approvals for the amendment were received. Except as provided in sub. (2m)
, a unit owner's written consent is not effective unless it is approved in writing by the first mortgagee of the unit, or the holder of an equivalent security interest, if any. Approval from the first mortgage lender or equivalent security interest holder, or the person servicing the first mortgage loan or its equivalent on a unit, constitutes approval of the first mortgagee or equivalent security interest holder under this subsection.
In this subsection, “first mortgagee" means the first mortgagee of a unit or the holder of an equivalent security interest, the first mortgage lender on a unit or the equivalent security interest holder, or the person servicing the first mortgage loan or its equivalent on a unit.
A unit owner, or the association on behalf of a unit owner, may obtain the approval required under sub. (2)
by providing written notice of the amendment to the first mortgagee that includes all of the following:
A form upon which the first mortgagee may indicate its approval or disapproval of the amendment.
A statement that, if the first mortgagee fails to complete and return the form described under subd. 3.
or otherwise disapprove the amendment in writing within 60 days from the date of mailing of the notice, the first mortgagee is considered to have given its approval of the amendment.
The unit owner or association shall deliver the notice under par. (b)
by certified mail to the last-known address of the first mortgagee. If no other address is known to the unit owner or association, the unit owner or association may deliver the notice to the address of the first mortgagee as the address appears on the mortgage or equivalent security instrument and to the address to which the unit owner sends any periodic payments on the first mortgage loan or its equivalent.
If the first mortgagee fails to complete and return the form described under par. (b) 3.
or otherwise disapprove the amendment in writing within 60 days after the unit owner or association mails the notice under par. (c)
, the first mortgagee is considered to have given its approval of the amendment as required under sub. (2)
If an amendment to a condominium declaration has the effect of reducing the value of any unit owner's interest in any common element, including any limited common element, and increases the value of the declarant's or any other unit owner's interest in the common element or limited common element, then the declarant or other unit owner shall compensate the unit owner the value of whose interest is reduced in the amount of the reduction in value, either in cash or by other consideration acceptable to the unit owner.
A unit owner may waive the right to obtain compensation under par. (a)
A declarant may assign his or her rights and obligations as a declarant under this chapter by recording an amendment to the declaration that includes the assignment and an acceptance of the assignment that is signed by the assignee and acknowledged. A declarant may not assign under this subsection less than all of his or her rights and obligations as a declarant under this chapter.
NOTE: 2003 Wis. Act 283
, which affected this section, contains extensive explanatory notes.
An amendment of a condominium declaration that changed a common area to a limited common area but did not change the owners' percentage interests in the common areas did not require unanimous approval of all owners and was valid. Any reduction in value due to the change from common area was recoverable under sub. (3) (a) by the owners whose condominium value decreased due to the change. Newport Condominium Association v. Concord-Wisconsin, 205 Wis. 2d 577
, 556 N.W.2d 775
(Ct. App. 1996), 95-0869
A condominium complex may prohibit the rental of condominium units through an amendment to the bylaws. Nothing in sub. (1) (g) or in any other section of this chapter requires that all restrictions on use must be identified in the declaration. Section 703.10 (3) expressly authorizes the placement of additional use restrictions in condominium bylaws and does not contain limitations on the types of restrictions that can be implemented through bylaw amendments. As long as use restrictions do not conflict with the declaration or with state or federal law, they are valid and enforceable. Apple Valley Gardens Association, Inc. v. MacHutta, 2009 WI 28
, 316 Wis. 2d 85
, 763 N.W.2d 126
Alternative procedure for amending declaration. 703.093(1)(1)
As an alternative to s. 703.09 (2)
, a condominium declaration may be amended under this section if at least two-thirds of the aggregate of the votes established under s. 703.09 (1) (f)
, or a greater percentage if provided in the declaration, consent to the amendment in writing and those consents are approved by the mortgagees or holders of equivalent security interests in the units. An amendment becomes effective when it is recorded in the same manner as the declaration.
The association has 180 days to secure the required consents and approvals under this section, commencing with the recording of an affidavit with the register of deeds of the county in which the condominium is located. The affidavit shall do all of the following:
Provide the name and address of the senior executive officer of the association to whom inquiries should be directed with regard to the proposed amendment.
State that a notice was sent to each owner of record and each lender of record for each unit of the association on the date the affidavit is recorded.
Be signed by the senior executive officer of the association.
Notice of a proposed amendment to a declaration under this section shall be mailed on the date the affidavit is recorded under sub. (2)
to the owner of each condominium unit and to any mortgagee of, or holder of an equivalent security interest in, each unit, as identified in a title report prepared on the date the notice is sent.
The notice mailed under sub. (3)
shall do all of the following:
Contain a copy of the text of the proposed amendment and a current copy of this section.
Include a written ballot to be signed by the unit owner, identifying the unit casting the ballot and identifying each owner of record of that unit as of the date the affidavit is recorded under sub. (2)
. The ballot shall include a place for any mortgagee or equivalent security interest holder to whom notice is sent under sub. (3)
to indicate its approval or objection under sub. (5) (b)
State that, if more than one person is an owner of the unit and the owners cannot agree how to cast the ballot, the unit's vote shall be treated as a vote in opposition to the proposed amendment.
State that a ballot signed by only one owner shall count as the ballot of that unit, unless more than one ballot is received by the association for that unit, in which case all ballots received for that unit must concur in the vote cast or the ballots, collectively, shall be treated as a vote in opposition to the proposed amendment by that unit.
State that the proposed amendment must be voted on as written and that no changes to the proposed amendment may be accomplished by this vote.
Include the address to which the completed ballot should be mailed or delivered.
The owner of each unit shall vote on the proposed amendment by signing the ballot before a notary public and by mailing the signed and notarized ballot or by personally delivering it to the association of unit owners at the applicable address specified under sub. (4) (f)
Each mortgagee or equivalent security interest holder receiving the notice under sub. (3)
shall signify its approval or objection to the amendment by having an authorized person sign the ballot before a notary public and by returning the signed, notarized ballot to the association.
The association may rely on the list of owners of record set forth in a title report obtained as of the date the affidavit is recorded under sub. (2)
, unless the association receives a written notice, signed and notarized by both the previous owner and the new owner, advising the association that ownership of the unit has changed. The association shall send a copy of the notice under sub. (3)
to the new owner of a unit and any mortgagee or equivalent security interest holder promptly after receiving notice of the transfer of ownership. It is the responsibility of the new unit owner to comply with this section. If the previous owner had voted prior to the change in ownership, the new owner may execute the ballot included in the notice under sub. (3)
, which ballot, when returned by the new owner, shall supersede and replace any ballot cast by the previous owner if the required approval of any mortgagee or equivalent security interest holder is also timely received. The 180-day period applicable to receipt of the ballot for the unit shall be extended to a date 14 days after the ballot is mailed by the association if the ballot is mailed within 14 days before the end of the 180-day period.
Any person acquiring a mortgage or equivalent security interest on a unit after the affidavit is recorded under sub. (2)
may notify the association in writing of the mortgage or equivalent security interest lien, identifying the unit on which it holds a lien, and signify its approval of or objection to the proposed amendment to the declaration.
If the association receives the required number of consents and approvals from unit owners and mortgagees and equivalent security interest holders within the required time after the affidavit is recorded under sub. (2)
, the senior executive officer of the association shall record an amendment in the office of the register of deeds of the county in which the condominium is located, setting forth the facts satisfying the requirements of this section and providing record notice to all interested persons that the declaration has been revised, effective upon the recording of the amendment, and restating the entire declaration, as amended.
The association shall, for a period of 2 years following the recording of the amended declaration under sub. (8)
, retain on file and make available for inspection at the place where the condominium financial records are maintained all of the following:
The title report under sub. (6)
relied upon by the association.
All of the ballots received by the association from unit owners.
All written approvals or objections received by the association from mortgagees and equivalent security interest holders.
History: 2003 a. 283
NOTE: 2003 Wis. Act 283
, which affected this section, contains extensive explanatory notes.
The doctrine of merger of title that: “No man can, technically, be said to have an easement in his own land. And the consequence is, that if the same person becomes owner in fee simple of both estates, the easement is extinguished," did not apply to extinguish easements created in a condominium declaration. Creation of a condominium is, by statute, a unilateral act by the owner in anticipation of a future sale. It does not involve any transfer of rights to a third party and does not create any new rights that can immediately merge back into the fee. Rather, it is a document defining rights to be sold in the future. Anderson v. Quinn, 2007 WI App 260
, 306 Wis. 2d 686
, 743 N.W.2d 492
Modification and correction of recorded condominium instruments, amendments, and addenda.
A recorded condominium instrument, amendment, or addendum may only be modified by recording an amendment, addendum, or correction instrument, or by removal from the provisions of this chapter under s. 703.28 (1)
. The register of deeds may not record an amendment, addendum, or correction instrument if it does not refer to the condominium instrument, amendment, or addendum being modified or corrected, including the document number, and may not record an amendment or addendum unless it is numbered consecutively or states that it is an amendment and restatement of the condominium instrument being modified or corrected, bears the name of the condominium as it appears in the declaration, and identifies all units in the condominium.
History: 1997 a. 333
; 2017 a. 333
Bylaws to govern administration.
The administration of every condominium shall be governed by bylaws. Every unit owner shall comply strictly with the bylaws and with the rules adopted under the bylaws, as the bylaws or rules are amended from time to time, and with the covenants, conditions and restrictions set forth in the declaration or in the deed to the unit. Failure to comply with any of the bylaws, rules, covenants, conditions or restrictions is grounds for action to recover sums due, for damages or injunctive relief or both maintainable by the association or, in a proper case, by an aggrieved unit owner.
The bylaws shall express at least the following particulars:
The form of administration, indicating whether the association shall be incorporated or unincorporated, and whether, and to what extent, the duties of the association may be delegated to a board of directors, manager or otherwise, and specifying the powers, manner of selection and removal of them.
The method of calling the unit owners to assemble; the attendance necessary to constitute a quorum at any meeting of the association; the manner of notifying the unit owners of any proposed meeting; who presides at the meetings of the association, who keeps the minute book for recording the resolutions of the association and who counts votes at meetings of the association.
The election by the unit owners of a board of directors of whom not more than one is a nonunit owner, the number of persons constituting the same and that the terms of at least one-third of the directors shall expire annually, the powers and duties of the board, the compensation, if any, of the directors, the method of removal from office of directors and whether or not the board may engage the services of a manager or managing agent.
The manner of assessing against and collecting from unit owners their respective shares of the common expenses.
The manner of borrowing money and acquiring and conveying property.
Limitation on enforcement of certain provisions.
No bylaw or rule adopted under a bylaw and no covenant, condition or restriction set forth in a declaration or deed to a unit may be applied to discriminate against an individual in a manner described in s. 106.50
Permissible additional provisions.
The bylaws also may contain any other provision regarding the management and operation of the condominium, including any restriction on or requirement respecting the use and maintenance of the units and the common elements.
Prohibiting voting by certain unit owners.
The bylaws may contain a provision prohibiting any unit owner from voting at a meeting of the association if the association has recorded a statement of condominium lien on the person's unit and the amount necessary to release the lien has not been paid at the time of the meeting.
The bylaws may be amended by the affirmative vote of unit owners having 67 percent or more of the votes. Each particular set forth in sub. (2)
shall be expressed in the bylaws as amended.
Title to condominium units unaffected by bylaws.
Title to a condominium unit is not rendered unmarketable or otherwise affected by any provision of the bylaws or by reason of any failure of the bylaws to comply with the provisions of this chapter.