Chapter 703

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.

703.20(5) (5) Applicability. Sections 181.1601 to 181.1603 do not apply to an association that is a corporation, as defined in s. 181.0103 (5).

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

703.20 History History: 1977 c. 407; 1985 a. 188; 2003 a. 283; 2017 a. 303; 2021 a. 166.

703.202 703.202 Access to records of association-controlled entity.

703.202(1) (1) In this section:

703.202(1)(a) (a) “Control” means to directly or indirectly do any of the following:

703.202(1)(a)1. 1. Own more than 50 percent of the ownership interest of an entity.

703.202(1)(a)2. 2. Have a controlling interest in an entity.

703.202(1)(a)3. 3. Have the power to direct or cause the direction of the management or policies of an entity.

703.202(1)(b) (b) “Entity” means a person other than an individual.

703.202(2) (2) If an association controls an entity, a unit owner may inspect and copy records of the entity to the same extent that the association may inspect and copy the records.

703.202 History History: 2021 a. 166.

703.205 703.205 Establishing fee amounts charged by association.

703.205(1) (1) Limitations on charging certain fees. An association may charge, or increase the amount of, the following fees only if the association follows the procedures under sub. (2):

703.205(1)(a) (a) A fee for furnishing the disclosure information under s. 703.33 (1), (1m), and (2) that is greater than the amount allowed under s. 703.33 (2m) (a).

703.205(1)(b) (b) A fee for providing the first payoff statement within a 2-month period as allowed under s. 703.335 (4) (b).

703.205(2) (2) Procedure for establishing fee amounts. An association may establish, or increase the amount of, a fee described under sub. (1) (a) or (b) by doing all of the following:

703.205(2)(a) (a) Providing written notice to unit owners as provided under s. 703.15 (4) (c) at least 48 hours before any meeting at which the association will consider any of the following:

703.205(2)(a)1. 1. Establishing the fee or increasing the amount of the fee.

703.205(2)(a)2. 2. Entering into or modifying a management contract that does any of the following:

703.205(2)(a)2.a. a. If the association does not currently charge the fee, allows the manager to begin charging the fee.

703.205(2)(a)2.b. b. If the association does currently charge the fee, allows the manager to increase the amount of the fee.

703.205(2)(b) (b) Adopting a written resolution, at a meeting described under par. (a), to take any of the actions described under par. (a) 1. or 2.

703.205(2)(c) (c) No later than 48 hours after adopting a resolution described under par. (b), providing written notice to unit owners describing the type of fee established or increased and the amount of the fee established or the amount by which the fee was increased.

703.205(3) (3) Failure to provide notice. An association’s failure to provide a notice required under sub. (2) (a) or (c) does not affect the right of the association, directly or under a management contract, to charge a fee established or increased under sub. (2).

703.205 History History: 2017 a. 303; 2021 a. 166.

703.21 703.21 Separate taxation.

703.21(1) (1) Every unit and its percentage of undivided interest in the common elements shall be deemed to be a parcel and shall be subject to separate assessments and taxation by each assessing unit and special district for all types of taxes authorized by law including, but not limited to, special levies based on the value of property and special assessments. Neither the building, the property nor any of the common elements shall be deemed to be a parcel separate from the unit.

703.21(2) (2) The rights, duties and obligations of unit owners under this chapter shall inure to and be binding upon grantees under tax deeds and persons acquiring title by foreclosure of tax liens and their successors in interest.

703.21 History History: 1977 c. 407; 1979 c. 110.

703.21 Annotation Each unit identified in the condominium declaration is a unit for purposes of separate taxation under this section, regardless of whether the unit has been constructed. For purposes of identifying the “unit,” as defined in s. 703.02 (15), a unit may exist without a building. Saddle Ridge Corp. v. Board of Review, 2010 WI 47, 325 Wis. 2d 29, 784 N.W.2d 527, 07-2886.

703.22 703.22 Construction and suppliers’ liens.

703.22(1) (1) Subsequent to recording a declaration under this chapter and while the property remains subject to this chapter, any and all liens will exist only against individual units and the percentage of undivided interest in the common elements appurtenant to such unit, in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership.

703.22(2) (2) Any construction lien or suppliers’ lien under subch. I of ch. 779 arising as a result of repairs to or improvements of a unit by a unit owner shall be a lien only against the unit.

703.22(3) (3) Any construction lien or suppliers’ lien under subch. I of ch. 779 arising as a result of repairs to or improvements of the common elements, if authorized in writing by the association, shall be paid by the association as a common expense and until paid shall be a lien against each unit in proportion to the unit’s percentage interest in the common elements. On payment of the proportionate amount by any unit owner to the lienor or on the filing of a written undertaking in the manner specified by s. 779.08, the unit owner shall be entitled to a release of the unit owner’s unit from the lien, and the association shall not be entitled to assess the unit owner’s unit for payment of the remaining amount due for the repairs or improvements.

703.22 History History: 1977 c. 407; 1979 c. 32 s. 92 (9); 2005 a. 204; 2017 a. 333.