SB 550 — Relating to: requirements related to condominium documents and technical changes to condominium law.

One of the criteria is that the ordinance must require that the local review be completed within ten working days after the condominium instrument is submitted and provide that, if the review is not completed within those ten working days, the condominium instrument is considered to be approved.

The bill extends the deadline for local review in this requirement to 15 working days.

Declaration;

declarant rights Under the bill, after the period of declarant control, a condominium declaration may not provide a declarant with a right that is not provided to other unit owners.

Condominium plat Under current law, a condominium plat must include a survey of the property that shows the location of any unit or building on the property and comply with the minimum standards adopted by the examining board of architects, landscape architects, professional engineers, designers, and professional land surveyors.

Under the bill, the survey of the property must also include a clear and concise description of the surveyed property that meets the requirements for a professional land surveyor certificate included on a recorded certified survey map.

Bylaws Under the bill, whenever condominium bylaws are amended by a condominium association, the condominium association must promptly deliver a copy of the approved amendment to each unit owner.

- 2020 Legislature - 4 - LRB-4752/1 FFK:skw SENATE BILL 550 Correction instruments Under current law, a correction instrument is an instrument drafted by a professional land surveyor that, upon recording, corrects an error in a condominium plat.

The bill specifies that a correction instrument may be used only to correct scrivener errors on a condominium plat, such as incorrect distances, angles, directions, building or unit numbers, or street names.

Small condominiums Current law provides alternative procedures for small condominiums.

A small condominium is a condominium with no more than 12 units.

Under current law, an agreement may be substituted for bylaws if approved by all of the unit votes in a small condominium.

Current law further provides that the affirmative vote or written consent of all the unit votes of the small condominium is required to amend such an agreement.

Under the bill, 75 percent of the unit votes of the small condominium are required to amend such an agreement.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SECTION 1.

703.02 (1b) of the statutes is amended to read:

703.02 (1b) “Addendum" means a condominium an instrument that modifies a recorded condominium plat.

SECTION 2.

703.02 (1h) of the statutes is amended to read:

703.02(1h) “Amendment" means a condominium an instrument that modifies a recorded condominium declaration.

“Amendment” includes a modification to a declaration to relocate unit boundaries under s.

703.13 (6), to separate or merge units under s.

703.13 (7) or (8), and to merge or consolidate a condominium under s.

703.275.

SECTION 3.

703.02 (3) of the statutes is amended to read:

703.02 (3) “Common expenses and common surpluses" mean the expenses and surpluses of an association.

SECTION 4.

703.02 (3m) of the statutes is created to read:

703.02 (3m) “Common surpluses” mean the surpluses of an association.

LRB-4752/1 - 2020 Legislature - 5 - FFK:skw SECTION 5 SENATE BILL 550 SECTION 5.

703.02 (6m) of the statutes is amended to read:

703.02 (6m) “Correction instrument" means an instrument drafted by a professional land surveyor that complies with the requirements of s.

59.43 (2m) and that, upon recording, corrects an error in a condominium plat.

“Correction instrument" does not include an instrument of conveyance.

SECTION 6.

703.02 (8m) of the statutes is created to read:

703.02 (8m) “Deliver” includes to deliver by hand, U.S.

mail, commercial delivery, facsimile transmission, or electronic mail.

SECTION 7.

703.02 (14g) of the statutes is amended to read:

703.02 (14g) “Removal instrument" means an instrument that complies with the requirements of s.

59.43 (2m) and that removes property from the provisions of this chapter upon recording.

“Removal instrument" does not include an instrument of conveyance.

SECTION 8.

703.065 of the statutes is created to read:

703.065 Recording requirements;

general.

Every instrument offered for record related to a condominium other than a plat or addendum shall satisfy all of the following criteria:

(1) The instrument shall include the name of the condominium as it appears in the declaration.

(2) The instrument shall be prepared in the standard format for recorded documents under s.

59.43 (2m) and (5) (a).

(3) The instrument shall comply with s.

706.05 (2) (a) and (b).

(4) If the instrument is a condominium instrument or an instrument that modifies a condominium instrument and the county in which the instrument is to be recorded has adopted an ordinance under s.

703.115, the instrument is accompanied - 2020 Legislature - 6 - LRB-4752/1 FFK:skw SENATE BILL 550 SECTION 8 by the certified written approval of the person who performed the review under the ordinance.

SECTION 9.

703.07 (2) of the statutes is amended to read:

703.07 (2) A condominium instrument, and all amendments, addenda and certifications of a condominium instrument, shall be recorded in every county in which any portion of the condominium is located, and shall be indexed in each county in the name of the declarant and the name of the condominium grantor and grantee and the description of the condominium property that is located in that county.

Subsequent instruments affecting the title to a unit which is physically located entirely within a single county shall be recorded only in that county, notwithstanding the fact that the common elements are not physically located entirely within that county.

Subsequent amendments and addenda shall be indexed under the name of the condominium.

SECTION 10.

703.08 (2) (intro.), (a) and (b) of the statutes are consolidated, renumbered 703.08 (2) and amended to read:

703.08 (2) A tenant may not be required to vacate the property during the 120-day period immediately following the date of delivery of the notice required under sub.

(1) except for:

(a) Violation of unless the tenant violates a covenant in the lease;r (b) Nonpayment of fails to pay rent.

SECTION 11.

703.09 (1) (title) of the statutes is created to read:

703.09 (1) (titleEQUIREMENTS.

SECTION 12.

703.09 (1b) of the statutes is created to read:

703.09 (1b) DECLARANT RIGHTS AFTER PERIOD OF DECLARANT CONTROL;

PROHIBITIO.

A condominium declaration may not provide a declarant with a right LRB-4752/1 - 2020 Legislature - 7 - FFK:skw S ECTION 12 SENATE BILL 550 in the association of unit owners after the period of declarant control ends under s.

703.15 (2) (c) if the right is not granted to unit owners who are not the declarant.

SECTION 13.

703.09 (1c) (title) of the statutes is created to read:

703.09 (1c) (titleONSENT OF PROPERTY OWNERS AND MORTGAGEES;

DECLARATION.

SECTION 14.

703.09 (2) of the statutes is amended to read:

703.09 (2) AMENDMENT.

Except as provided in sub.

(4) and ss.

703.093, 703.13 (6) (c), (cm), and (d), (7) (b) and (bm), and (8) (b), (bm), and (bp), and 703.26, a condominium declaration may be amended with the written consent of at least two-thirds of the aggregate of the votes established under sub.

(1) (f) or a greater percentage if provided in the declaration.

An amendment becomes effective when it is recorded in the same manner as the declarationdocument submitting the amendment for recording shall state that the required consents and approvals for the amendment were received.

Except as provided in sub.

(2m), a unit owner's written consent is not effective unless it is approved in writing by the first mortgagee of the unit, or the holder of an equivalent security interest, if any.

Approval from the first mortgage lender or equivalent security interest holder, or the person servicing the first mortgage loan or its equivalent on a unit, constitutes approval of the first mortgagee or equivalent security interest holder under this subsection.

SECTION 15.

703.09 (2m) (title) of the statutes is created to read:

703.09 (2m) (title)ONSENT OF UNIT OWNERS AND MORTGAGEES;

AMENDMENTS.

SECTION 16.

703.09 (3) (title) of the statutes is created to read:

703.09 (3) (titleOMPENSATION FOR REDUCTION IN VALUE;

AMENDMENTS.

SECTION 17.

703.09 (4) of the statutes is amended to read:

703.09 (4) SSIGNMENT OF DECLARANT'S INTERESTA declarant may assign his or her rights and obligations as a declarant under this chapter by recording an - 2020 Legislature - 8 - LRB-4752/1 FFK:skw SENATE BILL 550 SECTION 17 amendment to the declarationhat includes the assignment and an acceptance of the assignment that is signed by the assignee and acknowledged.

A declarant may not assign under this subsection less than all of his or her rights and obligations as a declarant under this chapter.

SECTION 18.

703.093 (1) of the statutes is amended to read:

703.093 (1) As an alternative to s.

703.09 (2), a condominium declaration may be amended under this section if at least two-thirds of the aggregate of the votes established under s.

703.09 (1) (f), or a greater percentage if provided in the declaration, consent to the amendment in writing and those consents are approved by the mortgagees or holders of equivalent security interests in the units.

An amendment becomes effective when it is recorded in the same manner as the declaration.

SECTION 19.

703.093 (7) of the statutes is amended to read:

703.093 (7) Any person acquiring a mortgage or equivalent security interest on a unit after the affidavit is recorded under sub.

(2) may notify the association in writing of the mortgage or equivalent security interest lien, identifying the unit on which it holds a lien, and signify its approval of or objection to the proposed amendment to the declaration.

SECTION 20.

703.095 of the statutes is renumbered 703.095 (1) and amended to read:

703.095(1) M ODIFICATIONS.

recorded condominium instrument, amendment, or addendum may onlybe modified only by recording an amendment, addendum, or correction instrument, or by removal from the provisions of this chapter under s.

703.28 (1).

LRB-4752/1 - 2020 Legislature - 9 - FFK:skw S ECTION 20 SENATE BILL 550 (2) REQUIREMENTS.

The register of deeds may not record an amendment, addendum, or correction instrument only if it does not refer the document complies with s.

703.065, if applicable, and satisfies all of the following criteria:

(a) It refers to the condominium instrument, amendment, or addendum being modified or corrected, including the document number assigned to the document being modified, and may not record an amendment or addendum unless it if volume and page numbers are assigned to the document being modified or corrected, the volume and page where the document is recorded.

(b) It is numbered consecutively or states that it is an amendment and restatement of the condominium instrument being modified or corrected, bears the name of the condominium as it appears in the declaration, and identifies.

(c) Identifies all units in the condominium.

SECTION 21.

703.095 (2) (d) of the statutes is created to read:

703.095 (2) (d) Clearly states the changes being made to the condominium instrument, amendment, or addendum it is modifying or correcting.

SECTION 22.

703.095 (3) of the statutes is created to read:

703.095(3) CORRECTION INSTRUMENT.A correction instrument may be used only to correct a scrivener error on a condominium plat, including erroneous distances, angles, directions, bearings, chords, building or unit numbers, and street names.

SECTION 23.

703.10 (5) of the statutes is amended to read:

703.10 (5) AMENDMENT.

The bylaws may be amended by the affirmative vote of unit owners having 67 percent or more of the votes.

Each particular set forth in sub.

(2) shall be expressed in the bylaws as amended.

Following an amendment to the bylaws, the association shall promptly deliver to each unit owner a copy of the approved amendment.

- 2020 Legislature - 10 - LRB-4752/1 FFK:skw SENATE BILL 550 SECTION 24 SECTION 24.

703.11 (2) (b) of the statutes is renumbered 703.11 (2) (b) (intro.) and amended to read:

703.11 (2) (b) (intro.) A survey of the property described in the declaration complying that satisfies all of the following criteria:

1.

The survey complies with minimum standards for property surveys adopted by the examining board of architects, landscape architects, professional engineers, designers and professional land surveyors and showing.

2.

The survey shows the location of any unit or building located or to be located on the property.

SECTION 25.

703.11 (2) (b) 3.

of the statutes is created to read:

703.11 (2) (b) 3.

The survey includes a clear and concise description of the surveyed property, as described in s.

236.34 (1m) (d) 2.

SECTION 26.

703.11 (2) (d) of the statutes is amended to read:

703.11 (2) (d) All survey maps and floor plans submitted for filing recording shall be legibly prepared with a binding margin of 1.5 inches on the left side and a one-inch margin on all other sides on durable white media that is 14 inches long by 22 inches wide with a permanent nonfading black image.

The maps and plans shall be drawn to a convenient scale.

SECTION 27.

703.11 (5) of the statutes is amended to read:

703.11 (5) AMENDMENT ADDENDUM.

Except as provided in s.

ss.

703.095 and 703.265, amendment of a condominium plat may be modified only by an addendum that is not included as part of an amendment to the declaration shall be that is accomplished in the same manner as an amendment to the declaration under s.

703.09 (2).

An addendum is effective when it is recorded in the manner described under s.

703.07 (2).

LRB-4752/1 - 2020 Legislature - 11 - FFK:skw S ECTION 28 SENATE BILL 550 SECTION 28.

703.115 (1) (a) of the statutes is amended to read:

703.115 (1) (a) Requires the review to be completed within 10 15 working days after submission of the condominium instrument and provides that, if the review is not completed within this period, the condominium instrument is approved for recording.

SECTION 29.

703.115 (1) (b) of the statutes is amended to read:

703.115 (1) (b) Provides that a condominium instrument may be rejected only if it fails to comply with the applicable requirements of ss.

703.065,03.11 (2) (a), (am(c) and (d) and (3), 703.275 (5) (1m) (b) and 703.28 (1m) or if the professional land surveyor's certificate under s.

703.11 (4) is not attached to or included in the condominium plat.

SECTION 30.

703.12 of the statutes is amended to read:

703.12 Description of units.

A description in any deed or other instrument affecting title to any unit, including a conveyance, as defined in s.

706.01 (4), that makes reference to the letter orber, or other appropriate designation of the unit on the condominium plat together with a reference to the condominium instruments and, the name of the condominium as it appears in the declaration, the name of the county where the condominium is located, the document numbers assigned to the declaration, and if volume and page numbers are assigned to the declaration, the volume and page where the declaration is recorded, shall be a good and sufficient description for all purposes.

SECTION 31.

703.13 (4) of the statutes is amended to read:

703.13(4) CHANGE IN PERCENTAGE INTERESTThe percentage interests shall have a permanent character and, except as specifically provided by this chapter, may not be changed without the written consent of all of the unit owners and their - 2020 Legislature - 12 - LRB-4752/1 FFK:skw SENATE BILL 550 S ECTION 31 mortgagees.

Any change shall be evidenced by an amendment to the declaration recorded among the appropriate land records.

The percentage interests may not be separated from the unit to which they appertain.

Any instrument, matter, circumstance, action, occurrenor proceeding in any manner affecting a unit also shall affect, in like manner, the percentage interests appurtenant to the unit.

S ECTION 32.

703.13 (6) (c) of the statutes is renumbered 703.13 (6) (c) (intro.) and amended to read:

703.13 (6) (c) (intro.) An amendment to a declarationl identify do all of the following:

1.

Identify the units involved and shall state that the boundaries between those units are being relocated by agreement of the unit owners thereof.

The amendment shall contain 2.

Contain words of conveyance between those unit the owners, and when recorded shall also be indexed in the name of the grantor and grantee of the units identified in subd.

1.

3.

If the adjoining unit owners have specified in their written application the reallocation between their units of the aggregate undivided interest in the common elements appertaining to those units, the amendment to the declaration shall reflect that reallocation.

(cm) An amendment to a declaration under this paragraph par.

(c) shall be adopted, at the option of the adjoining unit owners, either under s.

703.09 (2) or by the written consent of the owners of the adjoining units involved and the mortgagees of the adjoining units.

S ECTION 33.

703.13 (6) (d) of the statutes is amended to read:

LRB-4752/1 - 2020 Legislature - 13 - FFK:skw S ECTION 33 SENATE BILL 550 703.13 (6) (d) If the adjoining unit owners have specified in their written application a reasonable reallocation, as determined by the board of directors, of the number of votes in the association or liabilities for future common expenses not specially assessed, appertaining to their units, an amenmodifications to the condominium instruments shall reflect those reallocations.

An amendment to a declaration under this paragraph shall be adopted in the manner specified in par.

(c) (cm).

SECTION 34.

703.13 (6) (e) of the statutes is amended to read:

703.13 (6) (e) Plats and plans addendum showing the altered boundaries and the dimensions thereof between adjoining units, and their identifying numbers or letters, shall be prepared.

The plats and plansum shall be certified as to their its accuracy in compliance with this subsection by a professional land surveyor.

SECTION 35.

703.13 (6) (f) of the statutes is amended to read:

703.13 (6) (f) After appropriate instruments have been prepared and executed, they shall be delivered promptly to the adjoining unit owners upon payment by them of all reasonable charcosts for the preparation thereof.

Those instruments are effective when the adjoining unit owners have executed them and they are recorded in the name of the grantor and grantee.

The recordation thereof is conclusive evidence that the relocation of boundaries did not violate any restriction or limitation in the condominium instruments.

SECTION 36.

703.13 (7) (a) of the statutes is renumbered 703.13 (7) (am).

SECTION 37.

703.13 (7) (ac) of the statutes is created to read:

703.13 (7) (ac) In this subsection, “separator” means a person proposing the separation of a unit.

SECTION 38.

703.13 (7) (b) of the statutes is amended to read:

- 2020 Legislature - 14 - LRB-4752/1 FFK:skw SENATE BILL 550 SECTION 38 703.13 (7) (b) The principal officer of the association, upon written application of a person proposing the separation of a unit (separator) separator and after 30 days' written notice to all other unit owners, shall promptly prepare and execute appropriate instruments under this subsection.

An amendment to the condominium instruments (bm) An amendment to separate a unit into 2 or more units shall assign do all of the following:

1.

Assign a new identifying number to each new unit created by the separation of a unit, shall allocate 2.

Allocate to those units each new unit, on a reasonable basis acceptable to the separator and the executive board,ll of the undivided interest in the common element and rights to use the limited common elements and the votes in the association formerly appertaining to the separated unit.

The amendment shall reflect 3.

Reflect a proportionate allocation to the new units of the liability for common expenses and rights to common surpluses formerly appertaining to the subdivided unit.

SECTION 39.

703.13 (7) (c) of the statutes is amended to read:

703.13 (7) (c) Plats and plansAn addendum showing the boundaries and dimensions separating the new units together with their other boundaries and their new identifying numbers or letters shall be prepared.

The plats and plans shall be certified as to their its accuracy and compliance with this subsection by a professional land surveyor.

SECTION 40.

703.13 (7) (d) of the statutes is amended to read:

LRB-4752/1 - 2020 Legislature - 15 - FFK:skw S ECTION 40 SENATE BILL 550 703.13(7) (d) After appropriate instruments have been prepared and executed, they shall be delivered promptly to the separator upon payment by him or her of all reasonable cost for their preparation.

Those instruments are effective when the separator has executed them and they are recorded in the name of the separator.

The recording of the instruments is conclusive evidence that the separation did not violate any restrictions or limitation specified by the condominium instruments and that any reallocations made under this subsection were reasonable.

SECTION 41.

703.13 (8) (b) of the statutes is amended to read:

703.13 (8) (b) If the unit owners of adjoining units that may be merged desire to merge the units, the unit owners, after 30 days' written notice to all other unit owners, shall prepare and execute appropriate instruments under this subsection.

(bm) An amendment to the condominium instruments shall assign do all of the following:

1.

Assign a new identifying number to the new unit created by the merger of the units and shall allocate.

2.

Allocate to the new unit all of the undivided interest in the common elements and rights to use the limited common elements and the votes in the association formerly appertaining to the separate units.

The amendment shall reflect 3.

Reflect an allocation to the new unit of the liability for common expenses and rights to common surpluses formerly appertaining to the separate units.

(bp) An amendment to a declaration under this paragraph par.

(bm) shall be adopted either under s.

703.09 (2) or by the written consent of the owners of the units to be merged, the mortgagees of those units, if any, and the board of directors of the association.

SECTION 42.

703.13 (8) (c) of the statutes is amended to read:

- 2020 Legislature - 16 - LRB-4752/1 FFK:skw SENATE BILL 550 SECTION 42 703.13 (8) (c) Plats and plansAn addendum showing the boundaries and dimensions of the new unit together with the new identifying number or letter shall be prepared.

The plats and plans addendum shall be certified as to their its accuracy and compliance with this subsection by a professional land surveyor.

SECTION 43.

703.163 (11) of the statutes is amended to read:

703.163 (11) R ECORDING OF STATUTORY RESERVE ACCOUNT STATEMENT.

Each statutory reserve account statement executed under this section shall bear the name of the condominium as it appears on the declaration, shall be prepared in the standard format for recorded documents under s.

59.43 (2m) and (5) (a), shall comply with s.

706.05 (2) (a) and (b), and shall be recorded with the register of deeds of the county where the condominium instruments are recorded.

SECTION 44.

703.165 (3) of the statutes is amended to read:

703.165 (3) ASSESSMENTS CONSTITUTE LIEN.

All assessments, until paid, together with interest on them and actual costs of collection, constitute a lien on the units on which they are assessed, if a statement of lien is filed within 2 years after the date the assessment becomes due.

The lien is effective against a unit at the time the assessment became due regardless of when within the 2-year period it is filed.

A statement of condominium lien is filed in the land records of with the clerk of circuit court of the county where the unit is located, stating the description of the unit, the name of the record owner, the amount due and the period for which the assessment was due.

The clerk of circuit court shall index the statement of condominium lien under the name of the record owner in the judgment and lien docket.

The statement of condominium lien shall be signed and verified by an officer or agent of the association as specified in the bylaws and then may be filed.

On full payment of the LRB-4752/1 - 2020 Legislature - 17 - FFK:skw S ECTION 44 SENATE BILL 550 assessment for which the lien is claimed, the unit owner shall be entitled to a satisfaction of the lien that may be filed with the clerk of circuit court.

SECTION 45.

703.19 (5) of the statutes is amended to read:

703.19 (5) ADJUSTMENT OF PERCENTAGE INTERESTS FOLLOWING TAKING;

EFFECT OF TAKING ON VOTES APPURTENANT TO UNFollowing the taking of all or a part of any unit, the percentage interests appurtenant to the unit shall be adjusted in proportion as provided in the condominium instruments or bylaws.

The association promptly shall prepare and record an amendment to the declarationlecting the new percentage interests appurtenant to the unit.

Subject to sub.

(7), following the taking of part of a unit, the votes appurtenant to that unit shall be appurtenant to the remainder of that unit, and following the taking of all of a unit, the right to vote appurtenant to the unit shall terminate.

SECTION 46.

703.26 (2) (intro.) of the statutes is amended to read:

703.26 (2) ONDITIONS TO WHICH RESERVATION SUBJEC(intro.) A reservation of the right to expand a condominium is subject to all of the following conditions provided in this subsection.:

SECTION 47.

703.26 (2) (a) of the statutes is amended to read:

703.26(2) (a) AThe declaration establishing a the condominium shall describe describes each parcel of property which that may be added to the condominium.

SECTION 48.

703.26 (2) (b) of the statutes is renumbered 703.26 (2) (b) 1.

(intro.) and amended to read:

703.26 (2) (b) 1.

(intro.) A The declaration establishing a the condominium shall show the shows all of the following:

a.

The maximum number of units which that may be added, and the to the condominium.

- 2020 Legislature - 18 - LRB-4752/1 FFK:skw SENATE BILL 550 SECTION 48 b.

The percentage interests in the common elements, the liabilities for common expenses, and the rights to common surpluses, and the appurtenant to each unit following the addition of property to the condominium.

c.

The number of votes appurtenant to each unit following the addition of property to the condominium, if added.

The percentage interests in the common elements, the liabilities for common expenses and the rights to common surpluses, and the number of votes that each unit owner will have 2.

The information under subd.

1.

b.

and c.

may be shown by reference to a formula or other appropriate method of determining them following each expansion of the condominium.

SECTION 49.

703.26 (2) (c) of the statutes is amended to read:

703.26 (2) (c) A condominium The plat for an the original condominium shall include, in general terms, includes the outlines of the land, and, in general terms, the location of the buildings, and common elements of new property that may be added to the condominium.

SECTION 50.

703.26 (2) (d) of the statutes is amended to read:

703.26 (2) (d) In a declaration establishing a condominium, a The right to expand the condominium may be is reserved in the declaration for a period not exceeding 10 years from the date of recording of the declaration.

SECTION 51.

703.26 (3) of the statutes is amended to read:

703.26 (3) RECORDATION OFR ECORDING AMENDMENTS TO DECLARATION AND PLAT ADDENDA.

(a) If the conditions of sub.

(2) are complied with met, property may be added to a condominium if the declarant records anof the following:

LRB-4752/1 - 2020 Legislature - 19 - FFK:skw S ECTION 51 SENATE BILL 550 1.

An amendment to the declaration, showing that shows the new percentage interests of the unit owners, and the votes which that each unit owner may cast in the condominium as expanded, and records an.

2.

An addendum to the condominium plat that includes the detail and information concerning the new property as required in the original condominium that is required for a plat under s.

703.11 (2), (3), and (4).

(b) On recording of an amendment of a declaration and an addendum to a plat under par.

(a), each unit owner, by operation of law, has the all of the following:

1.

The percentage interests in the common elements, liabilities in the common expenses, and rights to common surpluses, and shall have the as set forth in the amendment.

2.

The number of votes, appurtenant to the unit owner's unit, as set forth in the amendment to the declaration.

(c) Following any expansion, the interest of any mortgagee shall attach, by operation of law, to the new percentage interests in the common elements appurtenant to the unit on which it is a lien.

SECTION 52.

703.26 (3) (d) of the statutes is created to read:

703.26 (3) (d) Property included in a reservation of the right to expand is not subject to the condominium declaration and is not part of the condominium until an amendment and addendum adding the property to the condominium are recorded.

SECTION 53.

703.265 (3) of the statutes is amended to read:

703.265 (3) An addendum made under this section shall be recorded as provided under s.

703.095 (2).

SECTION 54.

703.275 (1) (title) of the statutes is renumbered 703.275 (1m) (title).

- 2020 Legislature - 20 - LRB-4752/1 FFK:skw SENATE BILL 550 SECTION 55 SECTION 55.

703.275 (1) of the statutes is renumbered 703.275 (1m) (a) and amended to read:

703.275 (1m) (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 resulting from a merger or consolidation 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 must shall bear the name of one of the preexisting condominiums.

SECTION 56.

703.275 (1c) of the statutes is created to read:

703.275 (1c) DEFINITIONS.In this section:

(a) “Preexisting condominium” means a condominium that existed before a merger or consolidation under this section.

(b) “Restatement of the declaration of a resultant condominium” means an amendment to the declaration of the preexisting condominium that bears the same name as the resultant condominium that complies with s.

703.09.

(c) “Resultant condominium” means a condominium that results from a merger or consolidation under this section.

(d) “Resultant condominium plat” means an addendum to the plat of the preexisting condominium that bears the same name as the resultant condominium that complies with s.

703.11.

SECTION 57.

703.275 (1m) (b) of the statutes is created to read:

LRB-4752/1 - 2020 Legislature - 21 - FFK:skw S ECTION 57 SENATE BILL 550 703.275 (1m) (b) 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:

a.

A restatement of the declaration of the resultant condominium that includes the merger or consolidation agreement.

b.

A resultant condominium plat.

2.

a.

The documents under subd.

1.

shall be presented together to the register of deeds for recording.

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.

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.

SECTION 58.

703.275 (5) of the statutes is repealed.

SECTION 59.

703.28 (1m) (a) of the statutes is repealed.

SECTION 60.

703.28 (1m) (b) of the statutes is renumbered 703.28 (1m) and amended to read:

703.28(1m) Before a certified survey map, condominium plat, subdivision plat or other plat may be recorded and filed for the sameerty that is subject to a - 2020 Legislature - 22 - LRB-4752/1 FFK:skw SENATE BILL 550 S ECTION 60 condominium declaration, the condominium shall first be removed from the provisions of this chapter by recording a removal instrument.

This subdivision does not apply to a merger or consolidation under s.

703.275.

S ECTION 61.

703.30 (2) of the statutes is amended to read:

703.30 (2) SUBSTANTIAL CONFORMITY OF CONDOMINIUM INSTRUMENTS AND BYLAWS SUFFICIENT.The provisions of any condominium instruments and bylaws filed recorded 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.

S ECTION 62.

703.365 (3m) of the statutes is amended to read:

703.365 (3m) A GREEMENT IN LIEU OF BYLAWSIf approved by written consent of all of the unit votes of a small condominium, an agreement may be substituted for the bylaws under sub.

(3).

The terms of the agreement shall include the requirements of sub.

(3) (a) to (d) and shall be consistent with this section.

An amendment to an agreement may be made with the affirmative vote or written consent of all 75 percent of the unit votes of the small condominium.

S ECTION 63.

706.01 (7r) (b) of the statutes is amended to read:

706.01 (7r) (b) By condominium name, and unit number, and appurtenance number in a platted condominium development.

S ECTION 64.Initial applicability.

LRB-4752/1 - 2020 Legislature - 23 - FFK:skw S ECTION 64 SENATE BILL 550 (1) R ECORDING AND INDEXING REQUIREMENTS.

The treatment of ss.

703.065, 703.07 (2), and 703.12 first applies to deeds and other instruments that are submitted for recording on the effective date of this subsection.

(2) BYLAWS.

The treatment of s.

703.10 (5) first applies to an amendment to condominium bylaws that is approved under s.

703.10 on the effective date of this subsection.

(3) LOCAL ORDINANCE;

REVIEW OF CONDOMINIUM INSTRUMENTS.

The treatment of s.

703.115 (1) (a) and (b) first applies to an ordinance adopted on the effective date of this subsection.

SECTION 65.Effective date.

(1) This act takes effect on first day of the 7th month beginning after publication.