LRB-1600/1
FFK:cdc
2021 - 2022 LEGISLATURE
September 29, 2021 - Introduced by Senators Ballweg, Cowles and Marklein,
cosponsored by Representatives
Horlacher, Allen, Armstrong, Billings,
Brooks, Doyle, Spreitzer and Subeck. Referred to Committee on Housing,
Commerce and Trade.
SB590,2,2
1An Act to repeal 703.275 (5) and 703.28 (1m) (a);
to renumber 703.13 (7) (a)
2and 703.275 (1) (title);
to renumber and amend 703.095, 703.11 (2) (b), 703.13
3(6) (c), 703.26 (2) (b), 703.275 (1) and 703.28 (1m) (b);
to consolidate,
4renumber and amend 703.08 (2) (intro.), (a) and (b);
to amend 703.02 (1b),
5703.02 (1h), 703.02 (3), 703.02 (6m), 703.02 (14g), 703.07 (2), 703.09 (2), 703.09
6(4), 703.093 (1), 703.093 (7), 703.10 (5), 703.11 (2) (d), 703.11 (5), 703.115 (1) (b),
7703.12, 703.13 (4), 703.13 (6) (d), 703.13 (6) (e), 703.13 (6) (f), 703.13 (7) (b),
8703.13 (7) (c), 703.13 (7) (d), 703.13 (8) (b), 703.13 (8) (c), 703.163 (11), 703.165
9(3), 703.19 (5), 703.26 (2) (intro.), 703.26 (2) (a), 703.26 (2) (c), 703.26 (2) (d),
10703.26 (3), 703.265 (3), 703.30 (2), 703.365 (3m) and 706.01 (7r) (b); and
to
11create 703.02 (3m), 703.02 (8m), 703.065, 703.09 (1) (title), 703.09 (1c) (title),
12703.09 (2m) (title), 703.09 (3) (title), 703.095 (2) (d), 703.095 (3), 703.11 (2) (b)
133., 703.13 (7) (ac), 703.26 (3) (d), 703.275 (1c) and 703.275 (1m) (b) of the
1statutes;
relating to: requirements related to condominium documents and
2technical changes to condominium law.
Analysis by the Legislative Reference Bureau
This bill makes various changes to condominium law and clarifies
requirements related to various types of condominium documents.
General recording requirements; condominium instruments
This bill specifies that every instrument related to a condominium other than
a plat or an addendum (a modification to a plat) that is offered to a register of deeds
for recording must meet the following criteria:
1. The instrument must include the name of the condominium as it appears in
the declaration.
2. The instrument must meet the standard formatting requirements for
recorded documents.
3. The instrument must include any signatures required by law and must be
notarized or authenticated.
4. If the county in which the instrument is to be recorded has an ordinance that
requires local review of condominium instruments before recording, the instrument
must be accompanied by the certified written approval of the person who performed
the local review.
In addition, the bill specifies that a register of deeds may record an amendment,
addendum, or correction instrument only if the document satisfies the above criteria,
if applicable, and satisfies the following:
1. Refers to the instrument being modified or corrected.
2. Is numbered consecutively or states that it is an amendment and
restatement of the instrument being modified or corrected.
3. Identifies all units in the condominium.
4. Clearly states the changes being made to the document being modified or
corrected.
Expanding condominiums
Under current law, a declarant may reserve the right to expand a condominium
by subjecting additional property to the condominium declaration. Current law
provides various conditions that must be met in order for a reservation of a right to
expand a condominium to be valid. For example, the condominium declaration must
describe each parcel of property that may be added to the condominium under the
reservation of the right to expand and the condominium plat must include, in general
terms, the outline of the land, buildings, and common elements of the property that
may be added as part of the expansion.
The bill clarifies that the condominium plat must include the outline of the
expansion property and, in general terms, the buildings and common elements on
the expansion property. The bill also clarifies that property included in a reservation
of the right to expand is not subject to the condominium declaration (i.e., is not part
of the condominium) until an amendment and addendum that add the property to
the condominium are recorded.
Merger or consolidation of condominiums
Under current law, any two or more condominiums may be merged or
consolidated into a single condominium by agreement of the unit owners of the
existing condominiums. Current law requires that the condominium that results
from the merger or consolidation must have the same name as one of the preexisting
condominiums. The merger or consolidation agreement must reallocate the
allocated interests among the units of the resultant condominium.
The bill specifies that a condominium may be created by merger or
consolidation only by recording a restatement of the declaration for the resultant
condominium that includes the merger or consolidation agreement and a resultant
condominium plat. Under the bill, the register of deeds must reference the document
number of the resultant condominium plat on the plat of each preexisting
condominium plat that is merged or consolidated. The bill also specifies that it is not
necessary to remove the preexisting condominiums prior to a merger or
consolidation.
Condominium plat
Under current law, a condominium plat must include a survey of the property
that shows the location of any unit or building on the property and comply with the
minimum standards adopted by the examining board of architects, landscape
architects, professional engineers, designers, and professional land surveyors.
Under the bill, the survey of the property must also include a clear and concise
description of the surveyed property that meets the requirements for a professional
land surveyor certificate included on a recorded certified survey map.
Bylaws
Under the bill, whenever condominium bylaws are amended by a condominium
association, the condominium association must promptly deliver a copy of the
approved amendment to each unit owner.
Correction instruments
Under current law, a correction instrument is an instrument drafted by a
professional land surveyor that, upon recording, corrects an error in a condominium
plat. The bill specifies that a correction instrument may be used only to correct
scrivener errors on a condominium plat, such as incorrect distances, angles,
directions, building or unit numbers, or street names.
Small condominiums
Current law provides alternative procedures for small condominiums. A small
condominium is a condominium with no more than 12 units. Under current law, an
agreement may be substituted for bylaws if approved by all of the unit votes in a
small condominium. Current law further provides that the affirmative vote or
written consent of all the unit votes of the small condominium is required to amend
such an agreement. Under the bill, 75 percent of the unit votes of the small
condominium are required to amend such an agreement.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB590,1
1Section
1. 703.02 (1b) of the statutes is amended to read:
SB590,4,32
703.02
(1b) “Addendum" means
a condominium an instrument that modifies
3a recorded condominium plat.
SB590,2
4Section
2. 703.02 (1h) of the statutes is amended to read:
SB590,4,95
703.02
(1h) “Amendment" means
a condominium an instrument that modifies
6a recorded condominium declaration.
“Amendment” includes a modification to a
7declaration to relocate unit boundaries under s. 703.13 (6), to separate or merge units
8under s. 703.13 (7) or (8), and to merge or consolidate a condominium under s.
9703.275.
SB590,3
10Section
3. 703.02 (3) of the statutes is amended to read:
SB590,4,1211
703.02
(3) “Common expenses
and common surpluses" mean the expenses
and 12surpluses of an association.
SB590,4
13Section
4. 703.02 (3m) of the statutes is created to read:
SB590,4,1414
703.02
(3m) “Common surpluses” mean the surpluses of an association.
SB590,5
15Section
5. 703.02 (6m) of the statutes is amended to read:
SB590,4,1916
703.02
(6m) “Correction instrument" means an instrument drafted by a
17professional land surveyor
that complies with the requirements of s. 59.43 (2m) and 18that, upon recording, corrects an error in a condominium plat. “Correction
19instrument" does not include an instrument of conveyance.
SB590,6
20Section 6
. 703.02 (8m) of the statutes is created to read:
SB590,5,2
1703.02
(8m) “Deliver” includes to deliver by hand, U.S. mail, commercial
2delivery, facsimile transmission, or electronic means.
SB590,7
3Section
7. 703.02 (14g) of the statutes is amended to read:
SB590,5,74
703.02
(14g) “Removal instrument" means an instrument
that complies with
5the requirements of s. 59.43 (2m) and that removes property from the provisions of
6this chapter upon recording. “Removal instrument" does not include an instrument
7of conveyance.
SB590,8
8Section
8. 703.065 of the statutes is created to read:
SB590,5,11
9703.065 Recording requirements; general. Every instrument offered for
10record related to a condominium other than a plat or addendum shall satisfy all of
11the following criteria:
SB590,5,13
12(1) The instrument shall include the name of the condominium as it appears
13in the declaration.
SB590,5,15
14(2) The instrument shall be prepared in the standard format for recorded
15documents under s. 59.43 (2m) and (5) (a).
SB590,5,16
16(3) The instrument shall comply with s. 706.05 (2) (a) and (b).
SB590,5,21
17(4) If the instrument is a condominium instrument or an instrument that
18modifies a condominium instrument and the county in which the instrument is to be
19recorded has adopted an ordinance under s. 703.115, the instrument is accompanied
20by the certified written approval of the person who performed the review under the
21ordinance.
SB590,9
22Section 9
. 703.07 (2) of the statutes is amended to read:
SB590,6,723
703.07
(2) A condominium instrument, and all amendments, addenda and
24certifications of a condominium instrument, shall be recorded in every county in
25which any portion of the condominium is located, and shall be indexed
in each county
1in the name of the
declarant and the name of the condominium grantor and grantee
2and the description of the condominium property that is located in that county.
3Subsequent instruments affecting the title to a unit which is physically located
4entirely within a single county shall be recorded only in that county, notwithstanding
5the fact that the common elements are not physically located entirely within that
6county. Subsequent amendments and addenda shall be indexed under the name of
7the condominium.
SB590,10
8Section
10. 703.08 (2) (intro.), (a) and (b) of the statutes are consolidated,
9renumbered 703.08 (2) and amended to read:
SB590,6,1310
703.08
(2) A tenant may not be required to vacate the property during the
11120-day period immediately following the date of delivery of the notice required
12under sub. (1)
except for: (a) Violation of
unless the tenant violates a covenant in the
13lease
; or
(b) Nonpayment of
fails to pay rent.
SB590,11
14Section
11. 703.09 (1) (title) of the statutes is created to read:
SB590,6,1515
703.09
(1) (title)
Requirements.
SB590,12
16Section
12. 703.09 (1c) (title) of the statutes is created to read:
SB590,6,1717
703.09
(1c) (title)
Consent of property owners and mortgagees; declaration.
SB590,13
18Section
13. 703.09 (2) of the statutes is amended to read:
SB590,7,619
703.09
(2) Amendment. Except as provided in sub. (4) and ss. 703.093, 703.13
20(6) (c)
, (cm), and (d)
, (7) (b) and (bm), and (8) (b)
, (bm), and (bp), and 703.26, a
21condominium declaration may be amended with the written consent of at least
22two-thirds of the aggregate of the votes established under sub. (1) (f) or a greater
23percentage if provided in the declaration. An amendment becomes effective when
24it is recorded
in the same manner as the declaration.
The document submitting the
25amendment for recording shall state that the required consents and approvals for the
1amendment were received. Except as provided in sub. (2m), a unit owner's written
2consent is not effective unless it is approved in writing by the first mortgagee of the
3unit, or the holder of an equivalent security interest, if any. Approval from the first
4mortgage lender or equivalent security interest holder, or the person servicing the
5first mortgage loan or its equivalent on a unit, constitutes approval of the first
6mortgagee or equivalent security interest holder under this subsection.
SB590,14
7Section
14. 703.09 (2m) (title) of the statutes is created to read:
SB590,7,88
703.09
(2m) (title)
Consent of unit owners and mortgagees; amendments.
SB590,15
9Section
15. 703.09 (3) (title) of the statutes is created to read:
SB590,7,1010
703.09
(3) (title)
Compensation for reduction in value; amendments.
SB590,16
11Section
16. 703.09 (4) of the statutes is amended to read:
SB590,7,1712
703.09
(4) Assignment of declarant's interest. A declarant may assign his or
13her rights and obligations as a declarant under this chapter by recording an
14amendment
to the declaration that includes the assignment and an acceptance of the
15assignment that is signed by the assignee and acknowledged. A declarant may not
16assign under this subsection less than all of his or her rights and obligations as a
17declarant under this chapter.
SB590,17
18Section 17
. 703.093 (1) of the statutes is amended to read:
SB590,7,2519
703.093
(1) As an alternative to s. 703.09 (2), a condominium declaration may
20be amended under this section if at least two-thirds of the aggregate of the votes
21established under s. 703.09 (1) (f), or a greater percentage if provided in the
22declaration, consent to the amendment in writing and those consents are approved
23by the mortgagees or holders of equivalent security interests in the units. An
24amendment becomes effective when it is recorded
in the same manner as the
25declaration.
SB590,18
1Section
18. 703.093 (7) of the statutes is amended to read:
SB590,8,62
703.093
(7) Any person acquiring a mortgage or equivalent security interest
3on a unit after the affidavit is recorded under sub. (2) may notify the association in
4writing of the mortgage or equivalent security interest lien, identifying the unit on
5which it holds a lien, and signify its approval of or objection to the proposed
6amendment
to the declaration.
SB590,19
7Section
19. 703.095 of the statutes is renumbered 703.095 (1) and amended
8to read: