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    Wisconsin Lawyer
    September 01, 2004

    Significant Aspects of Revised Act

    Significant aspects of the revised Condominium Ownership Act.

    Mark Hinkston

      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 The association's right to appeal a taking is repealed and vested solely in unit owners.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)


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