Chapter 703

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.

703.22 Annotation Because the statute is silent as to the amount each unit should pay when a blanket lien is filed, application of the equitable principal that the lien should be applied proportionately against each unit was appropriate. Torke/Wirth/Pujara v. Lakeshore Towers, 192 Wis. 2d 481, 531 N.W.2d 419 (Ct. App. 1995).

703.23 703.23 Resident agent; exemption of unit owners from liability.

703.23(1) (1) Appointment of resident agent; change in name or address. When any property is submitted to a condominium declaration, the declarant shall appoint a resident agent for the condominium who shall be a citizen and actual resident of the state or corporation duly registered or qualified to do business in the state. The declarant shall file the name and address of the resident agent with the department of financial institutions. The name or address of the resident agent may be changed by the association or other proper authority of the condominium in the same manner and to the same extent that names and addresses of registered agents may be changed by corporations. If the association is incorporated, the registered agent for the association shall be the registered agent for the condominium.

703.23(2) (2) Index of names and address of resident agents. The department of financial institutions shall keep an index of the names and addresses of resident agents and shall make the information available to the public on request.

703.23(3) (3) Suits brought by service on resident agent. Suit may be brought by service on the resident agent in actions against an association, or which arise through any cause relating to the common elements.

703.23(4) (4) Exemption of unit owners from liability for certain claims. Except in proportion to his or her percentage interest in the common elements, no unit owner personally is liable for damages as a result of injuries arising in connection with the common elements solely by virtue of his or her ownership of a percentage interest in the common elements, or for liabilities incurred by the association.

703.23 History History: 1977 c. 407; 1995 a. 27.

703.24 703.24 Remedies for violations by unit owner or tenant of a unit owner.

703.24(1) (1) Definition. In this section, “violation” means failure to comply with this chapter or the declaration, bylaws, or association rules.

703.24(2) (2) Liability for unit owner violation. A unit owner who commits a violation is liable for any charges, fines, or assessments imposed by the association pursuant to the bylaws or association rules as a result of the violation and may be subject to a temporary or permanent injunction.

703.24(3) (3) Liability for violation by tenant.

703.24(3)(a) (a) If a tenant of a unit commits a violation that results in a charge, fine, or assessment imposed by the association pursuant to the bylaws or association rules, the tenant is liable for the charge, fine, or assessment.

703.24(3)(b) (b) If the association complies with the notice requirement of sub. (4), the owner of the unit occupied by the tenant when the violation occurred is liable for any charges, fines, or assessments imposed by the association for which the tenant is liable under par. (a) that are not paid by the tenant within 30 days after receiving the notice under sub. (4). This paragraph does not affect the liability of the tenant to the unit owner for any charges, fines, or assessments paid by the unit owner under this paragraph.

703.24(4) (4) Notice requirement for violation by tenant. If an association imposes a charge, fine, or assessment as a result of a violation by a tenant of a unit in the condominium, the association shall give notice to the tenant by any method under s. 704.21 (1) (a) to (e) and to the owner of the unit occupied by the tenant by any method under s. 704.21 (2) (a) to (d). The notice shall include all of the following:

703.24(4)(a) (a) The amount of charges, fines, or assessments for which the tenant is liable.

703.24(4)(b) (b) Notice that if the tenant fails to pay the association the amount for which the tenant is liable within 30 days after the tenant receives the notice, the owner is liable to the association for the amount unpaid by the tenant although the tenant may be liable to the unit owner for any amounts the unit owner pays.

703.24(5) (5) Other liability not affected. This section does not otherwise affect the liability of a unit owner or tenant who commits a violation.

703.24 History History: 1977 c. 407; 2003 a. 283.

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

703.245 703.245 Association-unit owner dispute; notice required.

703.245(1) (1) Definitions. In this section:

703.245(1)(a) (a) “Claim” means a request or demand by an association or unit owner for a remedy related to a dispute.

703.245(1)(b) (b) “Direct negotiation” has the meaning given in s. 802.12 (1) (b).

703.245(1)(c) (c) “Dispute” means a disagreement between an association and a unit owner arising out of or related to a condominium.

703.245(1)(d) (d) “Party” means an association or unit owner involved in a dispute.

703.245(2) (2) Limitation on judicial actions. An association may not commence or maintain a claim in circuit court against a unit owner unless the association complies with this section, and a unit owner may not commence or maintain a claim in circuit court against an association unless the unit owner complies with this section.

703.245(3) (3) Notice of claim required. Before an association or unit owner files a claim described under sub. (2) in circuit court, the association or unit owner shall deliver to the other party a written notice of the claim that includes all of the following information:

703.245(3)(a) (a) A description of the dispute to which the claim relates, including the date, time, and location of the events giving rise to the dispute, the persons involved in the events, and the other party’s role in the events.

703.245(3)(b) (b) The legal basis for the claim, including any applicable provisions of the condominium instruments, bylaws, rules, or other documents relating to the condominium or the association.

703.245(3)(c) (c) A proposal for resolving the dispute to which the claim relates.

703.245(3)(d) (d) A statement that the other party may request a direct negotiation conference under sub. (4) and the name and address of the person to which the other party may deliver the request.

703.245(4) (4) Request for direct negotiation conference. An association or unit owner that delivers or receives a notice of claim under sub. (3) may, no later than 10 business days after delivering or receiving the notice, request a direct negotiation conference with the other party by delivering a written request for direct negotiation that includes at least 3 proposed dates and times for the direct negotiation conference that are at least 5 days but not more than 30 days after the request is delivered. If the association or unit owner delivered the notice of claim, the association or unit owner shall deliver the request to the other party in the same manner that the notice was delivered under sub. (3). If the association or unit owner received the notice of claim, the association or unit owner shall deliver the request to the person identified under sub. (3) (d).

703.245(5) (5) Direct negotiation conference.

703.245(5)(a) (a) If a unit owner delivers a request under sub. (4) to an association, the association shall participate in a direct negotiation conference with the unit owner as provided under par. (c).

703.245(5)(b) (b) If an association delivers a request under sub. (4) to a unit owner, the unit owner may, but is not required to, participate in a direct negotiation conference with the association as provided under par. (c).

703.245(5)(c) (c) If an association and a unit owner participate in a direct negotiation conference under this subsection, the association and unit owner shall, no later than 30 days after the request under sub. (4) is delivered, meet at a mutually agreed upon time and place to engage in good faith direct negotiation to resolve the dispute described in the notice of claim delivered under sub. (3). The association and unit owner shall participate in the conference personally or by a representative or agent having authority to act with respect to the dispute and to bind the party represented. The association and unit owner may conduct the conference through the use of any means of communication by which any of the following occurs:

703.245(5)(c)1. 1. All participating individuals may simultaneously hear each other during the conference.

703.245(5)(c)2. 2. All communication during the conference is immediately transmitted to each participating individual, and each participating individual is able to immediately send messages to all other participating individuals.

703.245(6) (6) Circuit court action. If an association or unit owner sends a notice of claim under sub. (3), the association or unit owner may file the claim in circuit court when the earliest of the following occurs:

703.245(6)(a) (a) No party timely delivers a request for a direct negotiation conference under sub. (4).

703.245(6)(b) (b) The parties fail to resolve the dispute described in the notice within 10 business days after participating in a direct negotiation conference under sub. (5) (c).

703.245(6)(c) (c) The parties fail to conduct a direct negotiation conference under sub. (5) (c) within the time limit provided under sub. (5) (c).

703.245(6)(d) (d) A party notifies the other party that direct negotiation under sub. (5) (c) has not resulted in a resolution of the dispute described in the notice and the notifying party is terminating direct negotiations.

703.245(7) (7) Tolling of statutes of limitations. Any statute of limitations applicable to a claim is tolled for the period beginning on the date an association or unit owner delivers notice of the claim under sub. (3) and ending on the date the association or unit owner is allowed under sub. (6) to file the claim in circuit court.

703.245(8) (8) Breach of settlement agreement; fee shifting. If an association and a unit owner resolve the dispute to which a claim described under sub. (3) (a) relates through direct negotiation under sub. (5) (c), the association and unit owner may document that resolution in a written settlement agreement signed by them. If the association or unit owner materially breaches any material part of the agreement, subs. (2) to (6) do not apply to a claim of the nonbreaching party against the breaching party related to the breach, and the nonbreaching party may file a claim in circuit court related to the breach. If the nonbreaching party prevails in the circuit court action under this subsection, the circuit court shall award the nonbreaching party costs and, notwithstanding s. 814.04 (1), reasonable attorney fees.

703.245(9) (9) Applicability.

703.245(9)(a) (a) Exempt claims. This section does not apply to any of the following claims:

703.245(9)(a)1. 1. A claim by an association related to unpaid assessments, including filing a statement of lien under s. 703.165 (3) and an action to collect unpaid assessments or enforce a lien under s. 703.165 (7).

703.245(9)(a)2. 2. A claim by an association related to a violation, as defined in s. 703.24 (1), by a tenant for which notice is given under s. 703.24 (4).

703.245(9)(a)3. 3. A claim by a unit owner related to a decision of the board of directors of a small condominium described under s. 703.365 (6) (a).

703.245(9)(a)4. 4. A claim for a temporary injunction or other similar emergency equitable relief under s. 813.02.

703.245(9)(b) (b) Applicability to new and existing condominiums. This section does not apply to a condominium if the declaration of the condominium provides a process for resolving disputes through direct negotiation, mediation, or arbitration.

703.245 History History: 2019 a. 168.

703.25 703.25 Tort and contract liability.

703.25(1) (1) An action for tort alleging a wrong done by any agent or employee of a declarant or of an association, or in connection with the condition of any portion of a condominium which a declarant or an association has the responsibility to maintain, shall be brought against the declarant or the association, as the case may be. No unit owner shall be precluded from bringing such an action by virtue of its ownership of an undivided interest in the common elements or by reason of its membership in the association or its status as an officer.