Chapter 703

703.275(1m)(a) (a) Any 2 or more condominiums, including 2 or more small condominiums or any combination of small condominiums and other condominiums, by agreement of the unit owners as provided in this section, may be merged or consolidated into a single condominium. Unless the agreement otherwise provides, the resultant condominium is, for all purposes, the legal successor of all of the preexisting condominiums and the operations and activities of all associations of the preexisting condominiums shall be merged or consolidated into a single association which shall hold all powers, rights, obligations, assets and liabilities of the preexisting associations. The resultant condominium shall bear the name of one of the preexisting condominiums.

703.275(1m)(b) (b)

703.275(1m)(b)1. 1. Except as otherwise provided in this section, a resultant condominium may be created only by recording all of the following, as provided under s. 703.07:

703.275(1m)(b)1.a. a. A restatement of the declaration of the resultant condominium that includes the merger or consolidation agreement.

703.275(1m)(b)1.b. b. A resultant condominium plat.

703.275(1m)(b)2. 2.

703.275(1m)(b)2.a. a. The documents under subd. 1. shall be presented together to the register of deeds for recording.

703.275(1m)(b)2.b. b. The register of deeds may not record a resultant condominium plat without the restatement of the declaration of the resultant condominium and the merger or consolidation agreement.

703.275(1m)(b)2.c. c. On the plat of each preexisting condominium that is merged or consolidated to create a resultant condominium, the register of deeds shall reference the document number of the resultant condominium plat and, if the plat of the resultant condominium is assigned a volume and page number, the volume and page where the resultant condominium plat is recorded and shall note that the preexisting condominium was merged or consolidated. In a county that maintains a tract index pursuant to s. 59.43 (12m), the register of deeds shall make references to document numbers in the tract index.

703.275(2) (2) Reallocation of interests.

703.275(2)(ac) (ac) In this subsection, “allocated interests” means the undivided percentage interest in the common elements, the liability for common expenses, and the number of votes at meetings of the association appurtenant to each unit.

703.275(2)(bc) (bc) The merger or consolidation agreement shall provide for the reallocation of the allocated interests among the units of the resultant condominium. The agreement may not change the ratio that exists before the merger or consolidation between the allocated interests of any unit and the allocated interests of any other unit in the same preexisting condominium. The agreement shall state one of the following:

703.275(2)(bc)1. 1. The reallocations or the formulas upon which they are based.

703.275(2)(bc)2. 2. The percentage of the total of allocated interests of the new condominium which are allocated to all of the units comprising each of the preexisting condominiums.

703.275(3) (3) Agreement; other provisions. The merger or consolidation agreement may contain any provisions consistent with this chapter in addition to those specified in sub. (2).

703.275(4) (4) Votes. The merger or consolidation agreement is effective if the agreement is approved by the unit owners of units to which at least 75 percent of the votes in each preexisting association are allocated. If the declaration of a preexisting association specifies that a percentage greater than 75 percent of the votes in that association is required to approve a merger or consolidation agreement, the greater percentage applies to the vote of that association. A declaration of a preexisting association may specify a smaller percentage and the smaller percentage applies to the vote of that association only if all of the units in the preexisting condominium are restricted exclusively to nonresidential uses.

703.275 History History: 1985 a. 188; 1997 a. 333; 2003 a. 283; 2017 a. 102; 2021 a. 168.

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

703.28 703.28 Removal from provisions of this chapter.

703.28(1) (1) All of the unit owners may remove all or any part of the property from the provisions of this chapter by a removal instrument, duly recorded, provided that the holders of all liens affecting any of the units consent thereto or agree, in either case by instruments duly recorded, that their liens be transferred to the percentage of the undivided interest of the unit owner in the property.

703.28(1m) (1m) Before a certified survey map, condominium plat, subdivision plat or other plat may be recorded and filed for property that is subject to a condominium declaration, the condominium shall first be removed from the provisions of this chapter by recording a removal instrument. This subsection does not apply to a merger or consolidation under s. 703.275.

703.28(2) (2) Upon removal of any property from this chapter, the property shall be deemed to be owned in common by the unit owners. The undivided interest in the property owned in common which appertains to each unit owner shall be the percentage of undivided interest previously owned by the owner in the common elements.

703.28 History History: 1977 c. 407; 1997 a. 333; 1999 a. 96; 2021 a. 168; s. 35.17 correction in (1m).

703.29 703.29 Removal no bar to subsequent resubmission. The removal provided for in s. 703.28 shall in no way bar the subsequent resubmission of the property to this chapter.

703.29 History History: 1977 c. 407.

703.30 703.30 Rules of construction.

703.30(1) (1) Certain rules of law not applicable. Neither the rule of law known as the rule against perpetuities nor the rule of law known as the rule restricting unreasonable restraints on alienation may be applied to defeat or invalidate any provision of this chapter or of any condominium instruments, bylaws or other instrument made pursuant to this chapter.

703.30(2) (2) Substantial conformity of condominium instruments and bylaws sufficient. The provisions of any condominium instruments recorded and any bylaws required under this chapter shall be liberally construed to facilitate the creation and operation of the condominium. So long as the condominium instruments and bylaws substantially conform with the requirements of this chapter, no variance from the requirements shall affect the condominium status of the property in question nor the title of any unit owner to his or her unit, votes and percentage interests in the common elements and in common expenses and common surpluses.

703.30(3) (3) Provisions of condominium instruments and bylaws severable. All provisions of condominium instruments and bylaws are severable and the invalidity of one provision does not affect the validity of any other provision.

703.30(4) (4) Conflicts in provisions. If there is any conflict between any provisions of a declaration and provisions of a condominium plat or any provisions of the bylaws, the provisions of the declaration shall control. If there is any conflict between any provisions of any condominium instruments and any provisions of any bylaws, the provisions of the condominium instruments shall control. If there is any conflict between any provisions of any condominium instruments or any provisions of any bylaws and any provisions of this chapter, the provisions of this chapter shall control.

703.30(5) (5) Instruments construed together. Condominium instruments shall be construed together and are determined to incorporate one another to the extent that any requirement of this chapter applying to one instrument is satisfied if the deficiency can be corrected by reference to any of the others.

703.30 History History: 1977 c. 407; 2021 a. 168.

703.30 Annotation The application of this section 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 s. 703.26. 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.

703.31 703.31 Personal application.

703.31(1) (1) All unit owners, tenants of the owners, employees of owners and tenants or any other persons that in any manner use property or any part thereof subject to this chapter shall be subject to this chapter and to the declaration and bylaws of the association adopted under this chapter.

703.31(2) (2) All agreements, decisions and determinations lawfully made by an association in accordance with the voting percentages established in this chapter, declaration or bylaws, shall be deemed to be binding on all unit owners.

703.31 History History: 1977 c. 407.

703.315 703.315 Lease or rental agreements for residential units.

703.315(1) (1) Definitions. In this section:

703.315(1)(a) (a) “Condominium rental agreement” means an agreement, whether oral or written, for the rental or lease of a residential condominium unit by the same tenant for a period of more than one month.

703.315(1)(b) (b) “Tenant” means any of the following:

703.315(1)(b)1. 1. A person occupying or entitled to present or future occupancy of a residential condominium unit under a condominium rental agreement.

703.315(1)(b)2. 2. A periodic tenant, as defined in s. 704.01 (2), of a residential condominium unit that pays rent on a month-to-month or greater recurring interval of time.

703.315(1)(c) (c) “Unit owner” means the owner of a unit that is rented or leased under a condominium rental agreement or by a periodic tenant.

703.315(2) (2) Agreement for compliance. Entering into a condominium rental agreement constitutes an agreement by the tenant, as a condition of the condominium rental agreement, to comply with this chapter, the rules and bylaws of the association, and the provisions of the declaration. Entitlement to occupancy of a unit as a periodic tenant, as described in sub. (1) (b) 2., constitutes an agreement by the periodic tenant, as a condition of the tenancy, to comply with this chapter, the rules and bylaws of the association, and the provisions of the declaration.

703.315(3) (3) Copy of written agreement to association. Within 5 business days after entering into or renewing a written condominium rental agreement, the unit owner shall provide a copy of the agreement to the association. The association shall keep a copy of any condominium rental agreement on file while the agreement is in effect.

703.315(4) (4) Contact of unit owner and tenant by association. The association may contact or give notice to the tenant or unit owner by:

703.315(4)(a) (a) Making the contact or giving the notice by the means indicated by the tenant or unit owner in writing to the association.

703.315(4)(b) (b) If par. (a) does not apply, by any method under s. 704.21 (1) (a) to (e), in the case of the tenant, or by any method under s. 704.21 (2) (a) to (d), in the case of the unit owner.

703.315(5) (5) Copy of condominium documents to tenant. Before a tenant occupies a unit, the unit owner shall provide a copy of the declaration and the association bylaws and rules to the tenant or place the information in the unit.

703.315(6) (6) Time share not covered. This section does not apply to a time-share unit governed under ch. 707.

703.315 History History: 2003 a. 283.

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

703.32 703.32 Easements and encroachments.

703.32(1) (1) Presumption as to existing physical boundaries. Any existing physical boundaries of any unit or common elements constructed or reconstructed in substantial conformity with the condominium plat shall be conclusively presumed to be its boundaries, regardless of the shifting, settlement or lateral movement of any building and regardless of minor variations between the physical boundaries as described in the declaration or shown on the condominium plat and the existing physical boundaries of any such unit or common element. This presumption applies only to encroachments within the condominium.

703.32(2) (2) Encroachment as result of authorized construction, reconstruction or repair. If any portion of any common element encroaches on any unit or if any portion of a unit encroaches on any common element, as a result of the duly authorized construction, reconstruction or repair of a building, a valid easement for the encroachment and for the maintenance of the same shall exist so long as the building stands.

703.32(3) (3) Easements included in grant of unit. A grant or other disposition of a condominium unit shall include and grant and be subject to any easement arising under the provisions of this section without specific or particular reference to the easement.

703.32(4) (4) Association’s right of entry to make repairs. An association shall have an irrevocable right and an easement to enter units to make repairs to common elements when the repairs reasonably appear necessary for public safety or to prevent damage to other portions of the condominium. Except in cases involving manifest danger to public safety or property, an association shall make a reasonable effort to give notice to the owner of any unit to be entered for the purpose of such repairs. No entry by an association for the purposes specified in this subsection may be considered a trespass.

703.32 History History: 1977 c. 407.

703.33 703.33 Disclosure requirements in connection with sale of unit.

703.33(1) (1) Material to be furnished by seller to purchaser before closing. Not later than 15 days prior to the closing of the sale of a unit to a member of the public, the seller shall furnish to the purchaser the following:

703.33(1)(a) (a) Copies of the proposed or existing declaration, the bylaws, and any rules or regulations.

703.33(1)(b) (b) A copy of the proposed or existing articles of incorporation of the association, if it is or is to be incorporated.

703.33(1)(c) (c) A copy of any proposed or existing management contract, employment contract or other contract affecting the use, maintenance or access of all or part of the condominium to which it is anticipated the unit owners or the association will be a party following closing.

703.33(1)(d) (d) A copy of the projected annual operating budget for the condominium including reasonable details concerning the estimated monthly payments by the purchaser for assessments, and monthly charges for the use, rental or lease of any facilities not part of the condominium.

703.33(1)(e) (e) A copy of any lease to which it is anticipated the unit owners or the association will be a party following closing.

703.33(1)(f) (f) A description of any contemplated expansion of the condominium with a general description of each stage of expansion and the maximum number of units that can be added to the condominium.

703.33(1)(g) (g) A copy of the floor plan of the unit together with the information that is necessary to show the location of the common elements and other facilities to be used by the unit owners and indicating which facilities will be part of the condominium and which facilities will be owned by others.

703.33(1)(h) (h) An executive summary setting forth in clear plain language the following information, or the location within the disclosure materials described in pars. (a) to (g) where the information may be found, and the date on which the executive summary is prepared or revised:

703.33(1)(h)1. 1. ‘Condominium identification.’ The name of the condominium.

703.33(1)(h)2. 2. ‘Expansion plans.’ A description of the declarant’s expansion plan for the condominium and deadline for implementation and the identity of the condominium management during the expansion period.

703.33(1)(h)3. 3. ‘Governance.’ The name and address of the condominium association; whether the association is self-managed or has hired or retained management; and the name, address, and telephone number of the individual or individuals who may be contacted regarding the condominium in general.

703.33(1)(h)4. 4. ‘Special amenities.’ A description of any special amenities, such as an athletic club or golf course, and a statement of the obligation of a unit owner to join or support the amenity.

703.33(1)(h)5. 5. ‘Maintenance and repair of units.’ A description of an owner’s responsibilities for the repair and maintenance of the unit.

703.33(1)(h)6. 6. ‘Maintenance, repair, and replacement of common elements.’ The identity of the person responsible for the maintenance, repair, and replacement of common elements and limited common elements and whether repairs or replacements will be funded from unit owner assessments, reserve funds, or both.

703.33(1)(h)7. 7. ‘Rental of units.’ Whether unit owners may rent their units and any restrictions on rentals.

703.33(1)(h)8. 8. ‘Unit alterations.’ A description of any rules, restrictions, or procedures governing a unit owner’s authority to alter the unit or use or enclose limited common elements.

703.33(1)(h)9. 9. ‘Parking.’ A description of the availability, restrictions, and costs of parking.

703.33(1)(h)10. 10. ‘Pets.’ A description of rules relating to unit owners’ pets.

703.33(1)(h)11. 11. ‘Reserves.’ Whether the association maintains reserves for repairs and replacement of common elements beyond routine maintenance and, if so, whether a statutory reserve account under s. 703.163 is maintained and the amount of the reserve balance.

703.33(1)(h)11m. 11m. ‘Fees on new units.’ A description of any provisions exempting the declarant or modifying the declarant’s obligation to pay assessments on the declarant’s unsold units during the period of the declarant’s control, and any other provisions in the declaration, bylaws, or budget addressing the levying and payment of assessments on units during the period of the declarant’s control.

703.33(1)(h)11q. 11q. ‘Amendments.’ An indication that a unit purchaser’s rights and responsibilities may be altered by an amendment of the declaration or bylaws, and a description of the amendment process and requirements.

703.33(1)(h)12. 12. ‘Other restrictions or features.’ At the option of the declarant or association a description of other restrictions or features of the condominium.

703.33(1)(h)13. 13. ‘First right of purchase.’ Whether the association has a first right to purchase the unit.

703.33(1)(h)14. 14. ‘Transfer fee.’ Whether the association charges a fee in connection with a transfer of ownership of the unit and, if a fee is charged, the amount of the fee.

703.33(1)(h)15. 15. ‘Disclosure material fee.’ Whether the association charges a fee for providing the disclosure materials described in this section and, if a fee is charged, the amount of the fee.

703.33(1)(h)16. 16. ‘Payoff statement fee.’ Whether the association charges a fee for providing a payoff statement under s. 703.335 and, if a fee is charged, the amount of the fee.

703.33(1m) (1m) Preparation of executive summary. The executive summary under sub. (1) (h) shall be prepared, and subsequently revised whenever a change is made in the disclosure materials described in sub. (1) (a) to (g) that requires a revision of a statement in the summary, by the declarant or the association, whichever is in control of the condominium when the executive summary is prepared or revised.

703.33(2) (2) Disclosure form. The materials required in sub. (1) shall be delivered to a prospective purchaser with cover sheet, index, and tables of contents as prescribed in this section. A cover sheet and index shall precede all other materials required in sub. (1). The executive summary required under sub. (1) (h) shall appear immediately following the index. A table of contents shall precede the section to which it applies.