For a number of years it’s been the practice of many legal practitioners to record a condominium plat and declaration the day before the first sale of a condominium unit. Practitioners have employed this practice to ensure, in part, that the individual tax parcel numbers (and an actual assessment) for the condominium units are assigned at the time of the first unit sale rather than during the construction phase of the condominium project. With the advent of a new ordinance in Milwaukee County, this practice will need to be revised.
For a number of years it’s been the practice of many legal practitioners to record a condominium plat and declaration the day before the first sale of a condominium unit. Practitioners have employed this practice to ensure, in part, that the individual tax parcel numbers (and an actual assessment) for the condominium units are assigned at the time of the first unit sale rather than during the construction phase of the condominium project. With the advent of a new ordinance in Milwaukee County, this practice will need to be revised.
As of February 2, 2009, condominium declarants will need to submit condominium instruments to the Milwaukee County Register of Deeds at least 10 working days prior to the first unit conveyance. Pursuant to the newly created Section 56.285 of the General Ordinances of Milwaukee County, the Milwaukee County Register of Deeds must review condominium instruments (the declaration, plats and plans of a condominium, together with any attached exhibits or schedules) to ensure that the instruments are in compliance with Wisconsin’s Condominium Ownership Act prior to recording these instruments. The Milwaukee County Register of Deeds must complete its review within 10 working days after submission to the Register (and if not completed within 10 working days, the condominium instruments shall be deemed approved for recording).
Under the new ordinance, the Milwaukee County Register of Deeds may reject condominium instruments only if the instruments do not comply with §§703.095, 703.11(2)(a), (c) and (d), 703.11(3), 703.275(5) and 703.28(1m), Wis. Stats., OR if the surveyor’s certificate under §703.11(4), Wis. Stats., is not attached to or included in the condominium plat. The Register will inform the submitter if the condominium instruments are found to meet the requirements or if further information is required.
For this service, the Milwaukee County Register of Deeds will charge a $100 fee at the time the condominium instruments are submitted for review. The recording fee will be collected by the Register only when and if the condominium instruments are deemed acceptable.
Milwaukee County does not stand alone in its requirement to review condominium instruments prior to recording. Section 21.455 of the Brown County Code of Ordinances requires that the condominium plat and declaration, along with the required fees ($300 in 2009) and application, be submitted to the Brown County Planning and Land Services Department prior to submission to the Brown County Register of Deeds. The Brown County Property Listing office, being a division of the Brown County Planning and Land Services Department, is charged with the task of reviewing the condominium plat. Similar to the Milwaukee County ordinance, in Brown County the Lister has 10 days to approve, conditionally approve or reject the condominium plat. In the event of rejection or conditional approval, the submitter may appeal the decision to the Brown County Planning Commission Board of Directors. Once approved, the submitter must submit the plat to the Register of Deeds within 6 months of approval, along with the signed certificates of the Surveyor, the Planning and Land Services Department and the municipality where the plat is located, as applicable, and the condominium declaration. The Brown County Register of Deeds will then review the condominium declaration to ensure that it complies with Wisconsin’s Condominium Ownership Act.
Some of the more common reasons that Brown County has not approved a condominium plat or declaration outright include:
· Failure of the legal description to close;
· Failure of all of the land owners to consent to the submission of the land to the condominium ownership act;
· Failure of all of the outstanding mortgage holders to consent to the submission of the land to the condominium ownership act;
· Failure of the land described in the Plat to be the same as the land described in the Declaration; and
· Failure of the name of the condominium to be the same on the Plat and Declaration.
Because these ordinances serve as preventative measures, to give condominium declarants comfort that once the condominium instruments are accepted and recorded the instruments will not later be attacked for failure to comply with the statute and thus necessitating an amendment to the plat or declaration, other Wisconsin counties may jump on board. Would any Registers care to comment?