703.165 Annotation The language in sub. (2) pertaining to voluntary grants of property has no bearing on an involuntary grant, such as a sheriff's sale. In this case, the foreclosure judgment forever barred and foreclosed all right and interest of the condominium association in and to the property. A condominium association policy could not survive a foreclosure action to the extent it restricts a current owner's use of condominium facilities based on the failure of the prior owners to pay their debts. Such a policy ties the debts of the prior owners to the units, in violation of well-established foreclosure law. Walworth State Bank v. Abbey Springs Condominium Ass'n, 2016 WI 30, 368 Wis. 2d 72, 878 N.W.2d 170, 14-0940.
703.17 703.17 Insurance.
703.17(1)(1)An association shall obtain insurance for the property against loss or damage by fire and such other hazards for not less than full replacement value of the property insured and a liability policy covering all claims commonly insured against. Insurance coverage shall be written on the property in the name of the association as trustee for each of the unit owners in the percentages established in the declaration. Premiums shall be common expenses. Provisions for such insurance shall be without prejudice to the right of each unit owner to insure his or her own unit for personal benefit.
703.17(2) (2)Insurance proceeds shall first be disbursed by the trustees for the repair or restoration of the damaged common elements, and the unit owners and mortgagees shall not be entitled to receive payment of any portion of the insurance proceeds unless the association has determined not to rebuild, or the court has ordered partition of the condominium property, or there is a surplus of insurance proceeds after the common elements have been completely repaired or restored.
703.17 History History: 1977 c. 407; 1985 a. 332.
703.18 703.18 Repair or reconstruction.
703.18(1)(1)A declaration shall provide for the repair or reconstruction of the common elements in the event of damage to all or part of the common elements of the condominium.
703.18(2) (2)
703.18(2)(a)(a) Unless otherwise provided in the declaration, in the event of damage to or destruction of common elements of a condominium, the association shall promptly undertake to repair or reconstruct it to a condition compatible with the remainder of the condominium. All cost of the repair or reconstruction in excess of available insurance proceeds shall be a common expense.
703.18(2)(b) (b) However, if a condominium is damaged to an extent more than the available insurance proceeds, the condominium shall be subject to an action for partition upon obtaining the written consent of the unit owners having 75 percent or more of the votes. In the case of partition, the net proceeds of sale together with any net proceeds of insurance shall be considered as one fund and shall be divided among all unit owners in proportion to their percentage interests in the common elements, and shall be distributed in accordance with the priority of interests in each unit.
703.18 History History: 1977 c. 407.
703.19 703.19 Eminent domain.
703.19(1)(1)Definition. In this section, “taking under the power of eminent domain" includes any sale in settlement of any pending or threatened condemnation proceeding.
703.19(2) (2) Allocation of award; provisions in declaration or bylaws. A declaration or bylaws may provide for an allocation of any award for a taking under the power of eminent domain of all or part of the condominium. A declaration or bylaws also may provide for:
703.19(2)(a) (a) Reapportionment or other change of the percentage interests appurtenant to each unit remaining after any taking; and
703.19(2)(b) (b) Rebuilding, relocation or restoration of any improvements so taken in whole or in part.
703.19(3) (3) Allocation of award; in absence of provisions in declaration or bylaws. Unless otherwise provided for in a declaration or bylaws, any damages for a taking of all or part of a condominium shall be awarded as follows:
703.19(3)(a) (a) Every unit owner is entitled to the entire award for the taking of all or part of their respective unit and for consequential damages to their unit.
703.19(3)(b) (b) Any award for the taking of limited common elements shall be allocated to the unit owners of the units to which the use of those limited common elements is restricted in proportion to their respective percentage interests in the common elements.
703.19(3)(c) (c) In the event no reconstruction is undertaken, any award for the taking of common elements shall be allocated to all unit owners in proportion to their respective percentage interests in the common elements.
703.19(4) (4) Reconstruction following taking. Following the taking of all or a part of the common elements, an association shall promptly undertake to restore the improvements of the common elements to an architectural whole compatible with the existing structure. Any costs of such restoration in excess of the condemnation award shall be a common expense. However, if the taking under the power of eminent domain is to the extent where the remaining condominium portion has been diminished to the extent that reconstruction or restoration is not practical, a condominium shall be subject to an action for partition upon obtaining the written consent of the unit owners having 75 percent or more of the vote. In the case of partition, the net proceeds of sale, together with any net proceeds of the award for taking, shall be considered as one fund and shall be divided among all unit owners in proportion to their percentage interest in the common elements and shall be distributed in accordance with the priority of interests in each unit.
703.19(5) (5) Adjustment of percentage interests following taking; effect of taking on votes appurtenant to unit. Following the taking of all or a part of any unit, the percentage interests appurtenant to the unit shall be adjusted in proportion as provided in the condominium instruments or bylaws. The association promptly shall prepare and record an amendment reflecting the new percentage interests appurtenant to the unit. Subject to sub. (7), following the taking of part of a unit, the votes appurtenant to that unit shall be appurtenant to the remainder of that unit, and following the taking of all of a unit, the right to vote appurtenant to the unit shall terminate.
Effective date note NOTE: Sub. (5) is shown as amended eff. 10-1-22 by 2021 Wis. Act 168. Prior to 10-1-22 it reads:
Effective date text (5)Adjustment of percentage interests following taking; effect of taking on votes appurtenant to unit. Following the taking of all or a part of any unit, the percentage interests appurtenant to the unit shall be adjusted in proportion as provided in the condominium instruments or bylaws. The association promptly shall prepare and record an amendment to the declaration reflecting the new percentage interests appurtenant to the unit. Subject to sub. (7), following the taking of part of a unit, the votes appurtenant to that unit shall be appurtenant to the remainder of that unit, and following the taking of all of a unit, the right to vote appurtenant to the unit shall terminate.
703.19(6) (6) Priority in distribution of damages for each unit. All damages for each unit shall be distributed in accordance with the priority of interests at law or in equity in each respective unit.
703.19(7) (7) Taking not to include percentage interests or votes. A taking of all or part of a unit may not include any of the percentage interests or votes appurtenant to the unit.
703.19(8) (8) Preservation of the right of appeal. The owner of each unit taken may appeal the necessity of the taking and the condemnation award made for the taking. A unit owner may appeal the necessity of the taking, and the condemnation award made for the taking, of the owner's interest in the common elements. The unit owners having an interest in the ownership of limited common elements may individually or as a group appeal the necessity of the taking or the condemnation award made for the taking of the limited common elements.
703.19 History History: 1977 c. 407; 2003 a. 283, 326; 2021 a. 168.
703.19 Note NOTE: 2003 Wis. Act 283, which affected this section, contains extensive explanatory notes.
703.195 703.195 Acquisition of common elements by condemnors.
703.195(1)(1)Definitions. In this section:
703.195(1)(a) (a) “Acquire" means to obtain title to real property by purchase or condemnation.
703.195(1)(b) (b) “Common elements" means all of a condominium except its units and any limited common elements.
703.195(1)(c) (c) “Condemnor" means a person who has the authority to condemn property under ch. 32.
703.195(2) (2) Applicability. This section applies to the acquisition by a condemnor of a portion of the common elements of a condominium that is created 6 months or more after November 1, 2004. This section is in addition to any applicable provision in ch. 32.
703.195(3) (3) Notice to unit owners and association. A condemnor who seeks to acquire a portion of the common elements of a condominium and who wishes to negotiate with the association instead of with each unit owner shall notify the association and each unit owner of the proposed acquisition, in writing, at least 30 days before delivery of the appraisal required under s. 32.05 (2) (b) or 32.06 (2) (b). The notice to the unit owners shall be sent by certified mail, requesting a return receipt signed by the addressee only. Notice is deemed complete on the date the addressee acknowledges receipt. The notice required under this subsection is in addition to any notice required under s. 32.05 or 32.06 and shall be provided simultaneously with the pamphlets that are prepared under s. 32.26 (6) and provided under ss. 32.05 (2a) and 32.06 (2a). The condemnor is responsible for the expense of sending the notice under this subsection.
703.195(4) (4) Content of notice to unit owners. The notice to the unit owners required under sub. (3) shall, at a minimum, contain all of the following:
703.195(4)(a) (a) The name and address of the condemnor.
703.195(4)(b) (b) The legal description of the property to be acquired.
703.195(4)(c) (c) The public purpose for which the property is being acquired and a statement that the condemnor in good faith intends to use the property for that purpose.
703.195(4)(d) (d) The following statement in substantially identical language, in at least 12-point bold type, if printed, or in capital letters, if typewritten:
THIS NOTICE IS REQUIRED BY SECTION 703.195 OF THE WISCONSIN STATUTES. SECTION 703.195 OF THE WISCONSIN STATUTES PROVIDES THAT THE CONDOMINIUM ASSOCIATION OF WHICH YOU ARE A MEMBER MUST ACT AS YOUR AGENT TO CONVEY YOUR INTEREST IN THE AFFECTED PORTION OF THE CONDOMINIUM'S COMMON ELEMENTS IF YOU WISH. HOWEVER, YOU HAVE THE RIGHT TO NEGOTIATE WITH THE .... (NAME OF ACQUIRING AGENCY) ON YOUR OWN AND MAY REFUSE TO BE REPRESENTED BY THE ASSOCIATION.
IN ORDER FOR YOU TO PROCEED TO NEGOTIATE WITH THE .... (NAME OF ACQUIRING AGENCY) ON YOUR OWN, YOU MUST WITHIN 30 DAYS AFTER RECEIPT OF THIS NOTICE SIGN THIS DOCUMENT AT THE INDICATED LOCATION AND DEPOSIT IT IN THE UNITED STATES MAIL. .... (NAME OF ACQUIRING AGENCY) HAS ENCLOSED FOR YOUR CONVENIENCE A POSTAGE PRE-PAID, ADDRESSED ENVELOPE FOR THIS PURPOSE. FAILURE TO SIGN AND RETURN THIS NOTICE MEANS THAT YOU CONSENT TO THE ASSOCIATION ACTING AS YOUR AGENT TO NEGOTIATE AND CONVEY YOUR INTEREST IN THE AFFECTED PORTION OF THE CONDOMINIUM'S COMMON ELEMENTS.
IF THE ASSOCIATION ACTS AS YOUR AGENT, YOU WILL BE LEGALLY BOUND BY ANY DECISION OF THE ASSOCIATION'S BOARD OF DIRECTORS RELATING TO THE CONVEYANCE OF YOUR INTEREST IN THE AFFECTED PORTION OF THE CONDOMINIUM'S COMMON ELEMENTS. REGARDLESS OF WHETHER YOU CHOOSE TO NEGOTIATE ON YOUR OWN OR TO ALLOW THE ASSOCIATION OR ANY OTHER PERSON OR ENTITY TO NEGOTIATE ON YOUR BEHALF, YOU WILL RETAIN ALL RIGHTS TO CHALLENGE THE RIGHT OF CONDEMNATION, THE NECESSITY OF CONDEMNATION, OR ANY AMOUNT OF COMPENSATION AVAILABLE TO YOU UNDER CHAPTER 32 OF THE WISCONSIN STATUTES.
703.195(4)(e) (e) A prominent place for the unit owner to sign his or her name to indicate the unit owner's objection to the association acting as the agent for the unit owner in the conveyance of the common elements at issue.
703.195(5) (5) Method of objecting by unit owner. A unit owner who objects to the association acting as the agent for the owner shall indicate the objection as provided on the form under sub. (4) (e) and send the form, within 30 days after the notice under sub. (3) is received, to the condemnor by U.S. mail to the address indicated on the notice. The objection is made when the completed form is mailed to the condemnor. Before initiating negotiations with the unit owner under s. 32.05 (2a) or 32.06 (2a), the condemnor shall provide the association and those unit owners who have objected a written list of all of the unit owners who have objected.
703.195(6) (6) No objection by unit owner; association as agent. If a unit owner does not timely object under sub. (5), the unit owner is deemed to have consented to the association acting as the unit owner's agent in the conveyance of the common elements at issue and the association shall act as the agent for the unit owner in the conveyance to the condemnor of the unit owner's interest in the common elements at issue. Failure of the unit owner to object within the required time does not affect any other rights of the unit owner under ch. 32.
703.195(7) (7) Method of conveyance. The association shall execute any conveyance under this section as the agent for each of the unit owners who did not timely object under sub. (5). Those unit owners shall be identified, by name, on the conveyance.
703.195(8) (8) Objection by unit owner; unit owner retains rights. A unit owner who timely objects under sub. (5) retains all of his or her rights under ch. 32 with regard to the acquisition of the common elements at issue and to unit ownership.
703.195 History History: 2003 a. 283; 2015 a. 55.
703.195 Note NOTE: 2003 Wis. Act 283, which affected this section, contains extensive explanatory notes.
703.20 703.20 Association records; inspection by unit owners; financial audits.
703.20(1)(1)Record keeping.
703.20(1)(a)(a) Minutes and records of action; condominium documents. An association shall keep all of the following records:
703.20(1)(a)1. 1. Minutes of meetings of the association and of the board of directors of the association, which the association shall keep for at least 6 years.
703.20(1)(a)2. 2. Records of actions taken without a meeting by the unit owners on behalf of the association or by the board of directors of the association, which the association shall keep for at least 6 years.
703.20(1)(a)3. 3. The documents and information described under s. 703.33 (1) to (2) that are adopted by the association, which the association shall keep as permanent records.
703.20(1)(b) (b) Financial records. Except as provided under par. (c), an association shall maintain appropriate financial records for at least 6 years, including all of the following:
703.20(1)(b)1. 1. Detailed, accurate records using standard bookkeeping procedures of the receipts and expenditures affecting the common elements, specifying and itemizing the maintenance and repair expenses of the common elements and any other expenses incurred.
703.20(1)(b)2. 2. Annual budgets described under s. 703.161.
703.20(1)(b)3. 3. Financial statements.
703.20(1)(b)4. 4. Bank statements and account statements, including statements for reserve accounts, created within the past 6 years.
703.20(1)(b)5. 5. Income and expense statements.
703.20(1)(b)6. 6. Insurance policies issued within the past 6 years.
703.20(1)(b)7. 7. The most recent audit of the association's financial records, if any.
703.20(1)(b)8. 8. Contracts entered into within the past 6 years and any bids for those contracts received within the past 3 years.
703.20(1)(b)9. 9. Invoices and expense records created within the past 6 years.
703.20(1)(c) (c) Exception; records of initial construction. An association is not required under par. (b) to maintain any financial records related to the declarant's initial construction of the common elements during the period of declarant control under s. 703.15 (2) (c) if the costs of the initial construction are not assessed against unit owners as common expenses and no contract related to the initial construction is made by or on behalf of the association.
703.20(1g) (1g) Inspection and copying of records by unit owners.
703.20(1g)(a)(a) A unit owner may inspect and copy, at a reasonable time and location specified by the association, any of the records of the association described under sub. (1) created within the past 6 years and any records of the association described under sub. (1) (a) 3. and (b) 7. regardless of when those records were created. A unit owner may select the date for the inspection and copying by providing the association written notice of the selected date at least 10 business days before the selected date if the selected date is a business day or other day agreed to by the association.
703.20(1g)(b) (b) Notwithstanding par. (a), an association is not required to allow a unit owner to inspect or copy any of the following records:
703.20(1g)(b)1. 1. A record protected by the lawyer-client privilege, as described in s. 905.03, or a record that is the work product of the association's attorney.
703.20(1g)(b)2. 2. Personnel records of the association.
703.20(1g)(b)3. 3. A record of a violation of the declaration, bylaws, or association rules by a particular unit owner, other than the unit owner inspecting or copying the records.
703.20(1g)(b)4. 4. A record of assessments levied against a particular unit owner, other than the unit owner inspecting or copying the records, or a record of the account status of a particular unit owner, other than the unit owner inspecting or copying the records.
703.20(1g)(b)5. 5. A financial record described under sub. (1) (c).
703.20(1g)(c) (c) Notwithstanding par. (a), an association may, before allowing a unit owner to inspect or copy records, redact account numbers from the records described under sub. (1) (b) 3. and 4.
703.20(1g)(d) (d) An association may impose a reasonable charge for copies of any records the association provides to a unit owner under par. (a). The association may charge the unit owner for the costs of labor and materials used to provide the copies but may not charge an amount that exceeds the estimated cost of production or reproduction of the copies or $150, whichever is less.
703.20(1r) (1r) Large condominiums; Internet site for records inspection.
703.20(1r)(a)(a) In this subsection, “large association” means an association for a condominium with 100 or more units.
703.20(1r)(b) (b) Beginning on April 1, 2023, a large association shall maintain an Internet site that satisfies all of the following criteria:
703.20(1r)(b)1. 1. The site is any of the following:
703.20(1r)(b)1.a. a. Wholly owned and operated by the large association.
703.20(1r)(b)1.b. b. Operated by a 3rd-party provider with whom the large association owns, leases, rents, or otherwise obtains the right to operate a site dedicated to the large association's activities and on which the large association may post notices, records, and documents.
703.20(1r)(b)2. 2. The site is accessible through the Internet and includes a protected electronic location that is inaccessible to the general public and accessible only to unit owners and employees of the large association.
703.20(1r)(c) (c) Beginning on April 1, 2023, a large association shall post on its Internet site described under par. (b) a current copy of all of the records that unit owners are entitled to inspect under sub. (1g) (a).
703.20(1r)(d) (d) Upon a unit owner's written request, a large association shall provide the unit owner with a username and password and access to the protected locations of the large association's Internet site described under par. (b).
703.20(3) (3) Declarant responsibilities for records; financial audits. During the period of declarant control under s. 703.15 (2) (c), the declarant is responsible for creating and maintaining the records of the association described under sub. (1) and shall turn the records over to the directors elected under s. 703.15 (2) (f). During the period of declarant control under s. 703.15 (2) (c) and for one year thereafter, upon written request to the association by the lesser of 3 unit owners or the owners of 10 percent of the units, not including units owned by the declarant, the association shall arrange for an independent audit of the association's financial records at the association's expense. If unit owners request an audit within 36 months after the completion of a previous audit, the requesting unit owners shall pay the cost of the audit.
703.20(4) (4) Financial audits after expiration of declarant control. Beginning one year after the expiration of any period of declarant control under s. 703.15 (2) (c), upon written request to the association by a majority of unit owners, the association shall arrange for an independent audit of the association's financial records at the association's expense. If unit owners request an audit within 36 months after the completion of a previous audit under this subsection or sub. (3), the requesting unit owners shall pay the cost of the audit.
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2019-20 Wisconsin Statutes updated through 2021 Wis. Act 240 and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on May 20, 2022. Published and certified under s. 35.18. Changes effective after May 20, 2022, are designated by NOTES. (Published 5-20-22)