Q: Our HOA wants to cancel a 10-year agreement for bulk television service because the rates are out of market, but our attorney is telling us that we cannot cancel a contract simply because it was signed by a prior board. Are you aware of any grounds that our HOA could assert for cancelling such a long-term agreement?
A: Your attorney is probably correct in this instance. If the term of the agreement was greater than 10 years, the Florida homeowners association statute gives the association more leverage for cancelling an unfair contract. For any agreement that is 10 years or shorter, the association has less leverage. Further, there is law allowing condominium associations in Florida to cancel contracts signed by the developer prior to turnover. Whether your homeowners association, which is legally not a condominium in all likelihood, can attempt to cancel the contract under the condominium laws or another legal loophole can only be determined by the association’s legal counsel.