Chapter 703

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.

703.25(2) (2) An action arising from a contract made by or on behalf of an association shall be brought against the association, or against the declarant if the cause of action arose during the exercise by the declarant of control reserved under the declaration. No unit owner shall be precluded from bringing such an action by reason of its membership in the association or its status as an officer.

703.25(3) (3) A judgment for money against an association shall be a lien against any property owned by the association, and against each of the condominium units in proportion to the liability of each unit owner for common expenses as established under the declaration in an amount not exceeding the market value of the unit, but not against any other property of any unit owner.

703.25 History History: 1977 c. 407.

703.25 Annotation Sub. (3) and s. 840.10 (1) permit the filing of a lis pendens in an action for a money judgment against a condominium association as a judgment will be a lien against each condominium unit although their owners are not defendants in the action. Interlaken Service Corp. v. Interlaken Condominium Ass’n, 222 Wis. 2d 299, 588 N.W.2d 262 (Ct. App. 1998), 97-1107.

703.26 703.26 Expanding condominiums.

703.26(1) (1) Declarant may reserve right to expand. A declarant may reserve the right to expand a condominium by subjecting additional property to the condominium declaration in such a manner that as each additional property is subjected to the condominium declaration, the percentage of undivided interests in the common elements of the preceding and new property shall be reallocated between the unit owners on the basis of the aggregate undivided interest in the common elements appertaining to the property.

703.26(2) (2) Conditions to which reservation subject. A reservation of the right to expand a condominium is subject to all of the following conditions:

703.26(2)(a) (a) The declaration establishing the condominium describes each parcel of property that may be added to the condominium.

703.26(2)(b) (b)

703.26(2)(b)1. 1. The declaration establishing the condominium shows all of the following:

703.26(2)(b)1.a. a. The maximum number of units that may be added to the condominium.

703.26(2)(b)1.b. b. The percentage interests in the common elements, the liabilities for common expenses, and the rights to common surpluses appurtenant to each unit following the addition of property to the condominium.

703.26(2)(b)1.c. c. The number of votes appurtenant to each unit following the addition of property to the condominium, if added.

703.26(2)(b)2. 2. The information under subd. 1. b. and c. may be shown by reference to a formula or other appropriate method of determining them following each expansion of the condominium.

703.26(2)(c) (c) The plat for the original condominium includes the outlines of the land and, in general terms, the location of the buildings and common elements of new property that may be added to the condominium.

703.26(2)(d) (d) The right to expand the condominium is reserved in the declaration for a period not exceeding 10 years from the date of recording of the declaration.

703.26(3) (3) Recording amendments and addenda.

703.26(3)(a) (a) If the conditions of sub. (2) are met, property may be added to a condominium if the declarant records all of the following:

703.26(3)(a)1. 1. An amendment that shows the new percentage interests of the unit owners and the votes that each unit owner may cast in the condominium as expanded.

703.26(3)(a)2. 2. An addendum that includes the detail and information concerning the new property that is required for a plat under s. 703.11 (2), (3), and (4).

703.26(3)(b) (b) On recording of an amendment and an addendum under par. (a), each unit owner, by operation of law, has all of the following:

703.26(3)(b)1. 1. The percentage interests in the common elements, liabilities in the common expenses, and rights to common surpluses, as set forth in the amendment.

703.26(3)(b)2. 2. The number of votes appurtenant to the unit owner’s unit, as set forth in the amendment.

703.26(3)(c) (c) Following any expansion, the interest of any mortgagee shall attach, by operation of law, to the new percentage interests in the common elements appurtenant to the unit on which it is a lien.

703.26(3)(d) (d) Property included in a reservation of the right to expand is not subject to the condominium declaration and is not part of the condominium until an amendment and addendum adding the property to the condominium are recorded.

703.26 History History: 1977 c. 407; 1997 a. 333; 2021 a. 168.

703.26 Annotation Substantial compliance with formal requirements as permitted by s. 703.30 (2) is limited to the condominium status of the property and title of the unit owners. It does not apply to a project’s status as an expanding condominium under this section. Rock Lake Estates Unit Owners Ass’n v. Town of Lake Mills, 195 Wis. 2d 348, 536 N.W.2d 415 (Ct. App. 1995), 94-2488.

703.265 703.265 Addendum to plat to reflect changes in building codes or zoning ordinances.

703.265(1) (1) If the revision or adoption of a building code or zoning ordinance prevents or substantially affects the construction of a unit or common elements as platted, the declarant may reasonably modify the condominium plat, by addendum, to the extent necessary to comply with the code or ordinance in order to construct the unit or common elements.

703.265(2) (2) If the revision or adoption of a building code or zoning ordinance prevents or substantially affects the reconstruction of a unit or common element as platted, the declarant, unit owner, or association, as appropriate, may reasonably modify the condominium plat, by addendum, to the extent necessary to comply with the code or ordinance in order to reconstruct the unit or common elements.

703.265(3) (3) An addendum made under this section shall be recorded as provided under s. 703.095 (2).

703.265 History History: 2003 a. 283; 2021 a. 168.

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

703.27 703.27 Zoning and building regulations.

703.27(1) (1) A zoning or other land use ordinance or regulations may not prohibit the condominium form of ownership or impose any requirements upon a condominium that it would not impose if the development were under a different form of ownership. No provision of a state or local building code may be applied differently to a building in a condominium than it would be applied if the building were under a different form of ownership unless the different application is expressly permitted in that provision and the different application is reasonably related to the nature of condominium ownership. No subdivision ordinance may apply to any condominium unless the ordinance is, by its express terms, applicable to condominiums and the application is reasonably related to the nature of condominium ownership.