contracts

Started by LaverneB • 9 replies • 1203 views

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LaverneB (Florida)
Posts: 129

Posted:

Recently our Cable Company was replaced with a new company with out the home owners voice. This is the worse Cable Company out there(HOT WIRE) now we are stuck with a 10 years contract. Should we as homw owners have had a vote since we pay for this service with our maintance.....

MC2 (Virginia)
Posts: 26

Posted:

I think homeowners should have to approve this new contract. The FCC is currently working on a regulation to try to make these contracts null and void. Check this website www.banbulkbilling.com for more info

BruceF1 (Connecticut)
Posts: 2,535

Posted:

While I agree it seems unfair when a contract is negotiated that you don't like, unfortunately, it's usually the board that gets to decide. In most HOAs, that power is delegated in the bylaws or somewhere else. There's nothing you can do about it except to change the bylaws, recall the board, elect new members to the board, or whatever. Except, of course, anything you do after-the-fact is too late.

You can extend your argument that the homeowners should have a say to any contract, not just one with the cable company. How about all homeowners deciding on who mows the lawns? How about everybody voting on who does the landscaping? How about all homeowners deciding on which company will provide the association's insurance, or on which bank to use? For you folks up north, haw about all homoweners vote on who removes the snow?

Many HOAs are lucky to get a quorum once a year the elect board members, let alone trying to decide on every contract that needs to be made. For obvious practical reasons, that power is usually delegated to a few people known as your board members.

Again, I sympathize with you. In our HOA, we have a similar situation with a propane company (not a even a regulated utility) that supplies gas to heat our homes. They own the tanks. What happens if we decide to change gas suppliers? What kind of chaos could result from that? I don't think getting into a long-term contract (more than 2-3 years) with a cable company is a good idea, but if it's allowed under law (and presently it is) and if your board decides to do it, there's not much you can do.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Laverne,

I agree with Bruce. However, the answer lies in your gov. docs. It should be stated what authority the board has regarding contracts and whether or not a vote of the members is required. Some docs require a vote of the members for an expenditure that exceeds a certain amount which might also pertain to a contract. Check your docs and/or state law for the answer. If your docs are silent and there is no state law addressing this issue, then the board can do whatever it feels is right.

MC2 (Virginia)
Posts: 26

Posted:

BruceF1,
Although, I agree with you contracts for the common areas it is going to far deciding on what telecom service I get on the privacy of my home. Third party infringement on private property.

MaryA1 (Arizona)
Posts: 7,043

Posted:

MC,

Although Laverne didn't mention if she lived in a condo or a planned community, I would venture to say its a condo assn. It's not unusual for condos to contract with cable company's for service for all the units. I doubt this would happen in a planned community where all the members own their "whole" home and the property it sits on.

MC2 (Virginia)
Posts: 26

Posted:

MaryA1,

This is not limited to "condos" as you well suggest check this article.
http://banbulkbilling.com/index.php?topic=9.msg20#msg20

Laverne can you claify the decription of you property?

BruceF1 (Connecticut)
Posts: 2,535

Posted:

MC,

Yes, I have seen cable contracts for communities of free-standing homes (in a PUD, for example).

The problem still comes down to what authority the board has according to the law and association documents. You may feel the board shouldn't have such authority except for common areas, and I may agree with you, but, that doesn't change things. The inafrastructure is still contained in the common areas (for cable companies, cables, repeaters, splitters, etc. - in my case, underground gas storage tanks, pipes, etc.). Unless the laws or association documents specifically prohibit boards from entering into contracts in certain instances, the only recourse anyone has is to work to change the law or the association documents.

PaulM (Pennsylvania)
Posts: 1,347

Posted:

LaverneB: Many of us realize that you posted this concern prior and we are sorry it's still rearing its ugly head!

Why is the Association, as a group, 'stuck' with a 10 year contract? Who signed the contract with the new cable company? Would there be a better cable service for you to contract with or are they the only one?

BradP (Kansas)
Posts: 2,640

Posted:

Laverne:

I was also wondering why you are "stuck" with a 10 year contract? Is there no termination clause? Who in their right mind would sign such a long contract without provisions to get out if they aren't satisfied?

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