(1) LEGAL ENTITY. Except as otherwise provided in this section, the affairs of every time-share property shall be managed by an association which, whether incorporated or unincorporated, is a legal entity for all purposes. (2) ORGANIZATION OF ASSOCIATION. (a) More than 12 time shares. 1. If the number of time shares in a time-share property exceeds 12, the developer shall establish an association to govern the time-share property not later than the date of the first conveyance of a time share in the time-share property to a purchaser. The association shall be organized as a profit or nonprofit corporation or as an unincorporated association. After it is organized, the membership of the association shall at all times consist exclusively of all of the time-share owners. 2. If a developer does not establish an association under subd. 1., any interested party, including a time-share owner or a holder of a lien in the time-share property, may petition the circuit court in the county in which the time-share property is located to establish an association and prescribe the powers of the managing entity in accordance with sub. (5). (b) Twelve or fewer time shares. If the number of time shares in the time-share property is 12 or fewer, 3 or more time-share owners may form an association to manage the time-share property. (3) DEVELOPER CONTROL PERIOD. Until an association is established under sub. (2) or unless time-share owners exercise the authority granted under sub. (6), the developer has the power and responsibility to act in all instances in which this chapter, any other provision of law, the time-share instrument or project instrument requires action by the association or its officers. (4) BOARD OF DIRECTORS. (a) All powers of the association under sub. (5) shall be exercised by and under the authority of, and the business and affairs of the association shall be conducted by, a board of directors elected in accordance with pars. (b) to (d). (b) The developer or persons designated by the developer may appoint or remove the members of the association’s board of directors, except as provided in par. (c). (c) 1. Time-share owners other than the developer may elect no less than one-third of the members of the board of directors of the association when time-share owners other than the developer own 15 percent or more of the time shares in a time-share property. 2. Time-share owners other than the developer may elect no less than a majority of the members of the board of directors of an association when the first of any of the following occurs: a. Three years after 50 percent of the time shares in a timeshare property have been conveyed to purchasers. b. Three months after 90 percent of the time shares in a timeshare property have been conveyed to purchasers. c. All of the time shares that will ultimately be operated by the association have been completed, some of them have been conveyed to purchasers, and none of the others is being offered for sale by the developer in the ordinary course of business. d. Some of the time shares have been conveyed to purchasers and none of the others is being constructed or offered for sale by the developer in the ordinary course of business. 3. The developer or persons designated by the developer may not remove any member of the board of directors who was elected by the time-share owners. (d) Within 60 days after the time-share owners are entitled under par. (c) to elect a member or members of the board of directors of an association, the association shall call, upon not less than 30 days’ nor more than 40 days’ notice, a meeting of the time-share owners to elect the members of the board of directors. Any time-share owner may call and give notice of a meeting under this paragraph if the association fails to do so. (5) POWERS OF MANAGING ENTITY. (a) Subject to par. (c) and the time-share instrument, the association may do any of the following: 1. Adopt, amend and repeal bylaws, rules and regulations. 2. Adopt and amend budgets for revenues, expenditures and reserves, and levy and collect assessments for time-share expenses from time-share owners. 3. Employ and dismiss employees, agents and independent contractors. 4. Commence, defend or intervene in court actions or administrative proceedings in its name on behalf of itself or 2 or more time-share owners on matters affecting the time-share property or time shares. 5. Make contracts and incur liabilities. 6. Regulate the use, maintenance, repair, replacement and modification of the time-share property. 7. Cause additional improvements to be made to the timeshare property. 8. Impose charges for late payment of assessments and, after notice and an opportunity to be heard, levy reasonable fines for violations of the time-share instrument, bylaws and rules or regulations of the association. 9. Impose reasonable charges for the preparation of resale certificates required by s. 707.48 (2) or statements of unpaid assessments. 10. Exercise any other powers conferred by the time-share instrument or bylaws. 11. Impose and receive any payments, fees or charges for the use, rental or operation of the time-share property and for services provided to time-share owners. 12. Acquire, hold, encumber and convey in its name any right, title or interest in or to real or personal property. 13. Assign its right to future income, including the right to receive assessments for time-share expenses, but only to the extent that the time-share instrument expressly so provides. 14. Provide for the indemnification of its directors and officers and maintain directors’ and officers’ liability insurance. 15. Exercise all other powers that may be exercised in this state by legal entities of the same type as the association. 16. Exercise any other powers necessary and proper for the governance and operation of the association. (b) Except as otherwise provided in the time-share instrument, the manager, to the extent permitted by the management contract, may exercise the powers specified in par. (a) 1. to 11. (c) 1. The time-share instrument may not impose limitations on the power of the association to deal with the developer which are more restrictive than the limitations imposed on the power of the association to deal with other persons. 2. If the time-share property is a part of a project, this section may not confer any powers on the managing entity, the developer or the time-share owners with respect to any portion of the project other than the units comprising the time-share property. (6) POWERS AND RESPONSIBILITY IF NO MANAGING ENTITY. If the number of time shares in the time-share property is 12 or fewer and no managing entity is established, the time-share owners shall have all of the following: (a) The powers in sub. (5) (a) 1. to 11., subject to any restrictions and limitations specified by the time-share instrument. If the time-share instrument is silent with respect to the manner of exercise of any of these powers, the time-share owners may exercise the power only by unanimous action. (b) The responsibilities and liabilities of an association under ss. 707.33 and 707.34. (7) CAMPGROUNDS EXCLUDED. This section does not apply to time-share property in which a campground member owns a time-share easement in a campground.
‹ Prev All Wisconsin sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.