AB 647

This bill makes a number of miscellaneous changes to the condominium

provisions in current law, including the following:

1. Under current law, residential real property may not be converted to a

condominium unless the owner gives notice of the conversion to each tenant. Then,

for 60 days after the notice, a tenant has the first right to purchase the unit if offered

for sale and generally may not be required to vacate the property for 120 days after

the notice. The bill clarifies that these provisions apply only to residential tenants.

2. Current law provides that a property may be subjected to the condominium

form of ownership if the sole or all owners join in the execution and recording of a

condominium declaration in accordance with the condominium provisions. The bill

provides that any first mortgagee must also join in, consistent with current practice,

and that a plat of the condominium must also be recorded. The bill provides that,

for purposes of receiving notices or giving approvals under the condominium

provisions, the term "mortgagee" includes the party servicing the mortgage or land

contract. The bill also provides that if a mortgagee's consent or approval is required

for any action related to the condominium and the mortgagee cannot be contacted

with reasonable diligence, the condominium association (association) may seek

approval from a court to proceed with the action. In deciding the matter, the court

must consider whether the action is needed to permit the effective management and

operation of the condominium and the action's impact on the value of the units as

security for mortgages on the units.

3. Under current law, a unit is defined as a part of a condominium intended for

any type of independent use. In response to the holding in

ABKA Ltd. Partnership

v. DNR

, 2002 WI 106, 255 Wis. 2d 486, 648 N.W. 2d 854, the bill clarifies that a unit

may be of any size and for any use.

4. Current law requires that a seller of a condominium unit make certain

disclosures to the purchaser before the sale closing by furnishing copies of certain

documents. The bill specifically limits these disclosures to sales of residential units

and authorizes them to be made electronically if the purchaser properly consents to

that method.

5. The bill provides that if one or more units of a condominium are removed

from the condominium or destroyed and not rebuilt, the percentage interests in the

common elements must be adjusted to maintain the same ratio of those interests in

the remaining units. Likewise, the bill provides that if a condominium plat shows

a building with a specified number of units but the building is constructed in such

a way that precludes it from containing all of the units, the percentage interests

appertaining to the units not constructed must be added on a pro rata basis to the

remaining units. Any change to the percentage interests in the common elements