FREQUENTLY ASKED QUESTIONS ABOUT CONDOMINIUMS
Disclaimer: The information contained on this page is not legal advice. The information provided on this website is for general informational purposes and is not necessarily updated to account for changes in the law. You should consult with an attorney for legal advice regarding your individual circumstances.
What are the differences between declarations, bylaws, and rules and regulations for condominiums?
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 and 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 and regulations must comply with the Wisconsin Condominium Act, Wis. Stat. Ch. 703.
What are the differences between a unit, a common element, and a limited common element?
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 and regulations will typically regulate the extent to which unit owners may use or alter a unit, common element, or limited common element.
What Wisconsin laws apply to condominiums?
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 and 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.
What is the difference between a regular assessment and a special assessment?
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.
What remedies are available to an association if a unit owner fails to pay a regular or special assessment?
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.
Are restrictions on the rental of condominiums permitted?
The Wisconsin Condominium Act has been interpreted to permit limits to be imposed on the rental of units. Some condominiums permit 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.
Are small condominiums subject to the same rules as large condominiums?
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.
How often are association and board of director meetings required to take place?
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.
Are unit owners entitled to review the condominium’s records?
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.
Are there special disclosure requirements for the sale of condominiums in Wisconsin?
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.
Disclaimer: The information contained on this page is not legal advice. The information provided on this website is for general informational purposes and is not necessarily updated to account for changes in the law. You should consult with an attorney for legal advice regarding your individual circumstances.
What are the differences between declarations, bylaws, and rules and regulations for condominiums?
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 and 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 and regulations must comply with the Wisconsin Condominium Act, Wis. Stat. Ch. 703.
What are the differences between a unit, a common element, and a limited common element?
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 and regulations will typically regulate the extent to which unit owners may use or alter a unit, common element, or limited common element.
What Wisconsin laws apply to condominiums?
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 and 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.
What is the difference between a regular assessment and a special assessment?
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.
What remedies are available to an association if a unit owner fails to pay a regular or special assessment?
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.
Are restrictions on the rental of condominiums permitted?
The Wisconsin Condominium Act has been interpreted to permit limits to be imposed on the rental of units. Some condominiums permit 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.
Are small condominiums subject to the same rules as large condominiums?
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.
How often are association and board of director meetings required to take place?
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.
Are unit owners entitled to review the condominium’s records?
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.
Are there special disclosure requirements for the sale of condominiums in Wisconsin?
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:
- Copies of the proposed or existing declaration, the bylaws, and any rules or regulations.
- A copy of the proposed or existing articles of incorporation of the association, if it is or is to be incorporated.
- A copy of any proposed or existing management contract, employment contract or other contract affecting the use, maintenance or access of all or part of the condominium to which it is anticipated the unit owners or the association will be a party following closing.
- A copy of the projected annual operating budget for the condominium including reasonable details concerning the estimated monthly payments by the purchaser for assessments, and monthly charges for the use, rental or lease of any facilities not part of the condominium.
- A copy of any lease to which it is anticipated the unit owners or the association will be a party following closing.
- A description of any contemplated expansion of the condominium with a general description of each stage of expansion and the maximum number of units that can be added to the condominium.
- A copy of the floor plan of the unit together with the information that is necessary to show the location of the common elements and other facilities to be used by the unit owners and indicating which facilities will be part of the condominium and which facilities will be owned by others.
- An executive summary setting forth in clear plain language additional information mandated in sec. 703.33(1), Wisconsin Statutes.
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.