Significant Aspects of Revised Act

Item

Description

2003 Wis. Act 283/Wis. Stat. Reference

Statutory Reserve Account

By May 1, 2006, existing associations must establish a statutory reserve account to hold reserve funds for repair or replacement of common elements.

§ 33
703.163

Annual Budget

Condominium associations must establish and distribute an annual budget.

§ 32
703.161

Executive Summary

Condominium unit seller must provide to a buyer an "executive summary" (prepared by association or declarant) containing specific information (prescribed in the statute).

§§ 49, 50
703.33(1) (h)703.33(1m)

Real Estate Condition Report Addendum

Unit seller is to provide an addendum containing statutorily-prescribed information to supplement disclosure duties under Wis. Stat. ch. 709.

§ 69
709.02(2)

Assessments Expanded

Scope of condominium liens is widened; "assessments" definition is expanded to include special assessments and assessments for damage or penalties for violating condominium rules.

§§ 31, 34
703.165(1) 703.165(2)

Tenant Regulation/Unit Owner Liability

Tenants that occupy a leased condominium unit must comply with the association declaration, bylaws, and rules. Unit owner landlords may be liable for a tenant's fine or assessment if the tenant fails to pay.

§§ 38, 48
703.24703.315

Declaration - First Mortgagee Approval

First mortgagees are required to sign initial declaration establishing the condominium.

§ 11
703.09(1c)

Amendment of Declaration

Amount necessary to amend declaration is changed from 2/3 of unit owners to 2/3 of the aggregate of all unit votes. Written first mortgagee approval is required. An alternative amendment procedure is established.

§§ 14, 16
703.09(2)703.093

Eminent Domain Proceedings

Government condemnors are no longer required to obtain the consent of all unit owners but may negotiate directly with the association. The association's right to appeal a taking is repealed and vested solely in unit owners.

§ 36
703.195

Small Condominium Definition

The definition of "small condominium" is changed from 4 residential units or less to 12 units or less, whether residential or commercial. This is significant because small condominiums are afforded streamlined procedures.

§ 3
703.02(14m)