NOTABLE UPDATES IN THE 2021-2022 FIRST SUPPLEMENT TO THE FIFTH EDITION:
- Analyses of a new Wisconsin Supreme Court case concerning condominium associations' power to own intangible property such as trademarks or tradenames.
- A revised standard residential condominium offer to purchase form (WB-14) and updated discussions of the contents of the form, as well as other updated forms.
- Discussions about a new statute that imposes prelitigation notice-of-claim requirements and other procedural hurdles on certain disputes between condominium associations and unit owners.
- New sections discussing Regulation Crowdfunding and integration of securities offerings
- New notes about land condominiums, also known as building pad condominiums, and storage condominiums, including aircraft hangars
NOTABLE UPDATES IN THE FY2020 FULL REVISION (FIFTH EDITION):
In a 2016 decision, the Wisconsin Supreme Court reversed the court of appeals, holding that a condominium association's policy forbidding current and subsequent unit owners from using recreational facilities until unpaid condominium assessments are paid in full could not be enforced by a condominium association against a foreclosing mortgagee. See Supp. § 1.25.
In a 2013 decision, the Wisconsin Court of Appeals endorsed a condominium declaration provision that assessments of common expenses commenced as to a unit on the date of conveyance to a third party from a developer; therefore, under the statutory definition of “developer,” a foreclosing mortgagee of a multiple units was a successor in interest to the developer, not a third party that would be subject to assessments of common expenses. See Supp. § 4.85.
A 2013 Ninth Circuit Court of Appeals ruling and subsequent denial of certiorari by the U.S. Supreme Court may signal how courts will continue to analyze U.S. Securities and Exchange Commission (SEC) guidelines with respect to the issue of whether real-estate and rental-management contracts as a package are governed by federal securities laws. See Supp. § 11.10.
In 2016, the SEC adopted amendments to Rule 147 (17 C.F.R. § 230.147) and established new Rule 147A, both effective on April 20, 2017, to facilitate capital formation, including offerings relying on recent crowdsourcing state legislative initiatives. These changes, particularly use of Rule 147A, which does not place restrictions on offers to out-of-state residents, may be attractive to Wisconsin condominium developers. See Supp. § 11.15.
The 2019-20 revision includes a number of changes such as:
- A discussion of the effect of recently enacted Wisconsin laws affecting unit associations’ ability to charge certain fees, as well as their ability to contract and incur liabilities
- A discussion of recent amendments to Wisconsin statutes relating to assistance animals, including emotional support animals
- Discussion of recent Wisconsin Court of Appeals opinions relating to recreational liability
- A discussion of the effect of the Tax Cuts and Jobs Act of 2018 and the addition of a discussion of SEC Rules 504 and 505
Additionally, Chapter 3 has been retitled “Marketing Condominium Units.” It has been reorganized and updated to include the addition of new sections discussing issues specifically related to for-sale-by-owner properties.