In some areas of Wisconsin, a scan of property listings turns up properties called “twindominiums.” A twindominium is not an official real estate term defined in the Wisconsin statutes or regulations. Rather, it appears to refer to a duplex held in condominium ownership. However, the term twindominium recently has been used in different ways, confusing REALTORS® and consumers alike.
What is a Twindominium?
There seems to be no question that a twindominium is a duplex. A duplex is a structure that contains two separate dwelling units with separate entrances, kitchens, bedrooms, living rooms and bathrooms. In a duplex, the two dwelling units may be either one above the other or side by side with a common wall and roof. The term twindominium, however, seems to be used interchangeably to refer to duplexes that are owned as condominiums and to zero-lot-line duplexes.
Duplex Condominiums
When a duplex is developed as or converted to the condominium form of ownership, a condominium declaration and a condominium plat must be recorded with the register of deeds. If there is no condominium declaration and plat, then the property is not a condominium.
Many new duplex condominiums may be organized under the rules for small condominiums (no more than 12 units) found in Wis. Stat. § 703.365. Small condominiums may have abbreviated disclosure materials with no executive summary, and may have a common area or operating agreement instead of bylaws. The board of directors is composed of one representative from each unit, and all actions require a 75 percent vote. Obviously, the agreement should contain some sort of arbitration or other mechanism to resolve disputes and break tie votes.
The condominium association, pursuant to its governing documents, sets an annual operating budget and determines what common assessments will be levied against the unit owners. Each unit owner is responsible for the maintenance of his or her unit, while responsibility for all maintenance and repair of common areas such as the roof, yard and driveways generally will be shared by the unit owners.
Zero-Lot-Line Duplexes
Zero lot lines refer to zoning regulations that allow the construction of a building on a lot line. The typical zero-lot-line duplex will be a side-by-side duplex built on two lots with the common wall separating the two units placed above the lot line that is straddled by the duplex.
In a zero-lot-line duplex, each owner owns one lot and the dwelling unit that sits upon that lot, subject to zoning provisions. Each owner is responsible for the care and upkeep of his or her lot and the portion of the duplex structure resting thereon. Zero-lot-line duplexes may have operating agreements assigning responsibility for maintenance, repair or operating costs related to the property, especially shared components like the common wall and roof, and it is best to have a dispute resolution mechanism included. The agreement may be drafted by the developer or entered into by the property owners. Just because a duplex property is subject to restrictive covenants or the owners pay monthly fees, does not make the property a condominium.
Not all zoning ordinances permit zero lot lines – zoning is a matter of local control. Accordingly, not every area of the state may have zero-lot-line duplexes.
Form Selection
A licensee should use whichever Department of Regulation and Licensing-approved form best matches the transaction with the fewest number of changes or modifications. If the property is a traditional duplex or a zero-lot-line duplex, then a WB-1 Residential Listing Contract and a WB-11 Residential Offer To Purchase would appropriately be used, with additional explanations of zero-lot line features stated in additional provisions or in an addendum.
If the property is a duplex condominium with a recorded condominium declaration and plat, then a WB-4 Residential Condominium Listing Contract and a WB-14 Residential Condominium Offer to Purchase form would be used. If the property is legally not a condominium, care must be taken to avoid the condominium forms or condominium legal descriptions because this may mislead a party into believing the property is a condominium when it is not.
Careful Representations are Required
It is critical that REALTORS® determine the legal status of any duplex property they list or help buy: is it a traditional duplex, a duplex condominium or a zero-lot-line duplex? A title company, the seller or the seller’s attorney can help REALTORS® identify the form of ownership and the correct legal description.
REALTORS® must also make sure that the parties are provided with copies of all pertinent organizational documents, and refer the parties to their attorneys with any questions concerning legal responsibilities, ownership or title status.