Wisconsin Condo Due Diligence Checklist

Where Wisconsin due diligence deserves the most attention

Legal Framework

Condominiums: Governed by the Condominium Ownership Act, Wis. Stat. ch. 703 (§§ 703.01–703.38). The chapter is titled the "Condominium ownership act" (§ 703.01). The modern statute was created by 2003 Wisconsin Act 283, effective November 1, 2004, which was the most significant overhaul of Wisconsin condominium law in over 40 years. The statutes are current through 2025 Wis. Act 170 (per the official 2023–24 statutes update).

Reserve Studies and Reserve Funding

Scope: § 703.163 applies to condominiums consisting exclusively of residential units. It does not apply to a small condominium unless the declarant/association affirmatively elects in. Mixed residential/nonresidential condos can elect in by majority vote of each class.; New condos (created on/after Nov. 1, 2004): The declarant shall establish a statutory reserve account and execute a recorded statutory reserve account statement — but the declarant may elect not to establish it, or may terminate it during declarant control (§ 703.163(3)(c)).

Structural Inspections and Building Safety

Wisconsin has NO statewide milestone / periodic structural-safety inspection law for condominiums. There is no analog to Florida SB-4D, NYC Local Law 11/FISP, or California SB-326/SB-721.

Insurance Requirements and Insurance-Market Risk

Property insurance against fire and other hazards for not less than full replacement value of the insured property, and; A liability policy covering all claims commonly insured against.; No statutory mandate in ch. 703 for flood, wind/hail-specific, D&O, fidelity/crime, or earthquake coverage. Fidelity/crime and D&O are common practice but optional under statute.

Resale Disclosures and Buyer Cancellation Rights

An executive summary highlighting essential information (prepared/revised whenever the declarant or association changes the materials);; The declaration, bylaws, and articles of incorporation;; A floor plan of the unit and a map/plat showing the unit location and common areas/facilities;; Financial statements / budget and reserve disclosure — the materials must indicate whether the association maintains reserves for repair/replacement of common elements beyond routine maintenance, whether a statutory reserve account is maintained, and the reserve balance…

Assessments, Special Assessments, and Borrowing

Regular assessments (condo): The association adopts an annual budget under § 703.161 providing for common expenses and (if applicable) reserve funds; assessments are levied per the declaration's percentage interests. Insurance premiums are common expenses (§ 703.17). Budget contents are now statutorily specified (anticipated common expenses, reserve allocations, surpluses, non-assessment income, and the amount/purpose of assessments).; Special assessments: Permitted for unbudgeted/major/emergency costs.