The declaration is the document which establishes the basic rules for the condominium such as its location, size, organization, definitions of units/common elements, etc. A condominium is established under Wisconsin law when a declaration is filed with the county register of deeds, along with the related plat.
Bylaws contain the rules of operation for the condominium association, such as the frequency of meetings of the association and the board of directors, the powers delegated to the board of directors and individual officers, the timing and amount of assessment collection, etc.
Rules & regulations customarily contain general restrictions for condominium unit owners. For example, they may list prohibited activities and establish fines which may be levied against unit owners for violations.
Declarations, bylaws, and rules & regulations must comply with the Wisconsin Condominium Act, Wis. Stat. Ch. 703.
As to an individual condominium, these terms will usually be defined in the condominium’s declaration. They are also generally defined in Wisconsin’s Condominium Act at Wis. Stat. § 703.02.
A unit generally refers to the enclosed living space intended for the use and possession of an individual unit owner.
A common element generally refers to every part of a condominium other than its units. In many condominiums, the structural dividing point between a unit and a common element will be at or near the drywall.
A limited common element generally refers to common elements reserved for use by one or more unit owners. For example, a deck or patio adjacent to a unit would normally be identified as a limited common element.
A condominium’s declaration, bylaws, and rules & regulations will typically dictate the extent to which unit owners may use or alter a unit, common element, or limited common element.
Condominiums in Wisconsin are generally governed by the Wisconsin Condominium Act, Wis. Stat. Ch. 703. This chapter regulates nearly all aspects of condominiums in Wisconsin. All condominium documents such as declarations, bylaws, and rules & regulations, as well as condominium operations, must be consistent with the chapter’s provisions.
Condominiums are also subject to additional laws that would apply to other types of residential property, such as building codes, fair housing laws, landlord-tenant regulations, etc.
A regular assessment is a periodic charge (usually monthly) paid by condominium owners for items such as common element maintenance and repairs and condominium management expenses.
A special assessment is a special charge that may be a one-time payment or installment payments intended to cover an expense that is non-recurring. For example, special assessments may be levied to cover the expense of a large repair item such as a roof replacement.
Unit owners are required to timely pay all regular and special assessments levied by a condominium association. If a unit owner fails to make required payments, the condominium association may place a lien on the owner’s unit for the amount of any unpaid assessments by filing a statement of lien with the Clerk of Circuit Court of the county where the unit is located, within two years after the assessment becomes due. The association’s lien may be enforced through a foreclosure action, and the association may recover its costs and attorneys’ fees in the action.
The Wisconsin Condominium Act has been interpreted to allow limits to be imposed on the rental of units. Some condominiums allow a limited number of units to be rented, while others prohibit rental of any units. Prospective purchasers of a condominium unit should carefully review the condominium’s declaration, bylaws, and rules to determine whether the condominium contains any restrictions on unit rental.
If authorized in their condominium declaration, small condominiums with no more than 12 units may elect to utilize certain provisions of the Wisconsin Condominium Act which specify simpler rules and requirements than are required for larger condominium projects. “Statutory small condominiums” are allowed to have a simpler declaration and bylaws, a less extensive plat, and fewer disclosures.
Condominium bylaws will specify how often association meetings and board of director meetings will take place. Association meetings of the unit owners require a minimum of 10 days advance written notice to each unit owner.
Yes. Condominium associations are required to maintain records regarding its receipts and expenditures, which should be made available to unit owners at a convenient time.
Yes. In addition to the usual disclosure requirements (such as the requirement that the seller provide a real estate condition report), the seller of a residential condominium to a member of the public is required to provide the buyer with the following disclosure materials not later than 15 days before closing:
The disclosure materials must be delivered with a cover sheet entitled “Disclosure Materials,” with an index for the disclosure materials, and a table of contents for the declaration, bylaws and articles of incorporation. The cover sheet must also list the name and address of the seller, and other information required under sec. 703.33(2), Wisconsin Statutes. For conversion condominiums, there are additional disclosure requirements.
Since most sellers do not have easy access to the disclosure materials, the statutes require the association to provide the necessary disclosure materials within 10 days of receiving a request. Associations are permitted to request reimbursement for the cost of photocopying the materials.
The applicable statute requires that the disclosure materials be provided at least 15 days prior to closing. However, offers to purchase typically mandate that the disclosure materials be provided prior to that time.
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