Reading the bulk telecom and communications clause in Florida HOA and condo documents

Why this matters for a Canadian buyer

A Canadian buyer evaluating a Florida property typically asks about the HOA fee, the property tax, the insurance premium, and the monthly utilities. The bulk telecom clause sits at the intersection of two of those (the HOA fee and the utility bill) and is routinely missed because it is not labelled as a separate line in the closing disclosure. The result is one of three failure modes the buyer learns about only after closing.

Failure mode 1: the buyer signs an ISP contract with Spectrum, Xfinity, or AT&T on move-in day, without realizing the building has a Hotwire bulk contract paid through the HOA fee. The buyer is now paying twice for internet for the duration of the ISP contract (typically 12 to 24 months in 2026, though most US ISPs have moved away from long-term contracts), and the only escape is the cancellation fee on the new ISP.

Failure mode 2: the buyer assumes that because the building has a bulk contract, internet is included for any owner. In reality, some bulk contracts cover only the basic service tier (typically 100 to 300 Mbps and a basic cable lineup), and any upgrade to a higher tier or to a premium TV package is billed individually to the owner. The buyer who needs gigabit speeds for work-from-home or premium sports channels still pays an upgrade fee.

Failure mode 3: the buyer closes on a unit in a building where a developer-affiliated board signed a 10-year bulk contract with a Hotwire-style provider, locking in above-market pricing that all owners must continue paying through the HOA fee until the contract expires. Even after the unit owners take control of the board (post-developer turnover), the contract typically remains binding until expiration unless cancelled by majority vote at the next regular or special meeting per § 718.115(1)(d).

The clause is short, the cost is recurring, and the cost stack of the property cannot be modelled accurately without it.

The legal framework: where the bulk contract authority comes from

Florida condominiums: Florida Statutes § 718.115(1)(d) (state level)

The governing statute states: "If provided in the declaration, the cost of communications services as defined in chapter 202, information services, or Internet services obtained pursuant to a bulk contract is a common expense."¹ The statute defines four points that flow from this authority:

1. The declaration is the trigger. Without a clause in the recorded Declaration of Condominium authorizing the board to enter into a bulk contract, the cost cannot be allocated as a common expense. If the declaration is silent, the board may still enter a bulk contract for video service, but the cost is allocated per unit (rather than by percentage interest), and pre-1998 contracts can be re-allocated by a majority vote.
2. The minimum term is 2 years. A bulk contract for cable or video service must have a term of at least two years.
3. Three narrow opt-out categories. Hearing-impaired or legally blind unit owners (who do not occupy the unit with a non-hearing-impaired or sighted person), and unit owners receiving Supplemental Security Income (SSI) under Title XVI of the Social Security Act, or food assistance from the Department of Children and Families, can discontinue the cable or video service without disconnect fees and are not required to pay the common-expense charge for that service.
4. Cancellation by majority vote. A bulk contract entered by the board after July 1, 1998 can be cancelled by a majority of voting interests present at the next regular or special meeting of the association.

Florida HOAs: Florida Statutes § 720.309(2) (state level)

The HOA equivalent gives the board similar authority to enter into bulk communications contracts and to allocate the cost as a common expense, with a comparable 2-year minimum term and the same opt-out categories.² Practical operation is similar to the condo statute.

Florida cooperatives: Florida Statutes § 719.107(2)(b) (state level)

Cooperatives, less common in Florida than condos and HOAs, follow a parallel framework under Chapter 719.

What the federal layer does NOT do

The Federal Communications Commission (FCC) does not regulate the existence of bulk contracts in private residential associations. There is no federal cap on what a bulk contract can cost, no federal requirement that owners be allowed to opt out for general convenience reasons, and no federal disclosure requirement that the bulk contract be presented to a buyer pre-closing. The disclosure regime is the Florida-state one (the declaration, the budget, the recorded amendments), which the buyer is responsible for reading.

Where to find the clause: the four-document review

A Canadian buyer should request the following four documents from the seller's broker or directly from the HOA management company before closing:

Document 1: Declaration of Condominium (or HOA Declaration / CC&Rs). This is the foundational governance document, recorded with the county clerk. The relevant clause is typically found in a section labelled "Common Expenses," "Common Elements," or "Telecommunications Services." The clause may read along the lines of: "The Association may enter into bulk-rate contracts for communications services, information services, or Internet services as defined in Chapter 202 of the Florida Statutes, the cost of which shall be a common expense allocated pro rata to all unit owners." Absence of such a clause means the association cannot legally allocate the bulk-contract cost as a common expense (though it may still enter a video-only bulk contract under different rules).

Document 2: The current annual budget. The HOA must adopt an annual budget that lists each common-expense category. A bulk telecom contract appears as a line item, typically labelled "Cable Television," "Internet Services," "Bulk Telecommunications," or similar. The dollar amount on this line is the annual cost per unit for the bulk service. Divide by 12 to obtain the monthly cost.

Document 3: The bulk service agreement itself. This is a separate contract between the association and the provider (typically Hotwire/Fision, Comcast/Xfinity bulk, or a regional fibre provider). The agreement specifies the term (start and end dates), the services included, the speed or channel lineup, the per-unit price, and the cancellation provisions. Florida law gives unit owners the right to inspect official records, including bulk contracts (§ 718.111(12) for condos, § 720.303(5) for HOAs).

Document 4: The 4 most recent meeting minutes. Bulk contract renewals, cancellations, and amendments are typically discussed and voted on at board meetings. The minutes show whether the contract is currently being renegotiated, whether owners have raised complaints, and whether a vote to cancel has been proposed.

In a typical Florida condo transaction in 2026, the seller is required by Chapter 718 to provide a "Frequently Asked Questions and Answers Sheet" and the current budget pre-closing. The Declaration is recorded publicly and obtainable from the county clerk for a small fee. The bulk service agreement is the document most often missing from the standard pre-closing disclosure, and it is the one a careful buyer must specifically request.

What to look for in the clause

The four numbers and one date that matter for a Canadian buyer's cost model:

Per-unit monthly cost. The annual budget line for "bulk telecommunications" or equivalent, divided by the number of units. In a Hotwire-bulk Boca Raton condo of 200 units, a typical 2026 annual line might be 240,000 USD, or 100 USD per unit per month. This is what the buyer is paying through the HOA fee for the bulk service, regardless of whether the service is used.

Services included. Read the service agreement to determine: internet only, internet plus video, internet plus video plus phone, or internet plus full smart-home and security. The 2026 trend is internet-heavy, with video as an optional bundle and phone increasingly excluded entirely. Speeds typically run 300 Mbps to 1 Gbps for the bulk tier; gigabit-symmetric in newer Hotwire deployments.

Service tier above the bulk minimum. Many bulk contracts cover only a baseline tier and allow owners to upgrade individually to higher speeds or premium channels at a discounted rate. A buyer who needs gigabit symmetric for work-from-home should check the upgrade pricing in the service agreement.

Term and remaining duration. The agreement states a start date and an end date, typically a 5 to 10-year term in larger condo communities. A buyer purchasing in year 2 of a 10-year contract is committed to 8 more years of the bulk-fee structure regardless of price changes elsewhere in the market. A buyer purchasing in the final year of a contract benefits from the imminent renewal negotiation, where the board may switch providers or renegotiate price.

Cancellation provisions. Per § 718.115(1)(d), a bulk contract entered by the board after July 1, 1998 can be cancelled by a majority of voting interests at the next meeting. In practice, a single buyer cannot cancel; cancellation requires a coalition of owners representing a majority of voting interests, which is rare unless the contract is materially overpriced. The buyer should not assume cancellation is a practical option mid-term.

Canada to Florida: how the legal frameworks compare

The Canadian-side analogue varies sharply by province. Quebec is used as the reference here. Equivalent comparisons for Ontario, British Columbia, and Alberta are forthcoming.

Worked example: 200-unit Hotwire-bulk condo, Boca Raton

A Quebec couple is evaluating the purchase of a 2-bedroom unit at a 200-unit oceanfront condo in Boca Raton. The HOA fee is 950 USD per month. The seller's broker provides the budget and the FAQ sheet but not the bulk service agreement. The buyer's attorney requests the bulk agreement during the 3-day condo cancellation window.

The bulk agreement reveals the following:

• Provider: Hotwire Communications (Fision)
• Term: 10 years, signed on 1 March 2024, expires 28 February 2034
• Services included: 1 Gbps symmetric fibre internet to each unit, plus a basic cable lineup of 100 channels (Fision TV)
• Per-unit cost: 96 USD per month (Hotwire bills the association at 90 USD per unit; the association adds a 6 USD per unit administrative markup as common expense)
• Upgrade to gigabit-pro symmetric: 30 USD per month, billed individually
• Premium channels (HBO, Showtime): 15 USD per month each, billed individually
• Cancellation: by majority of voting interests of the association, after the next regular meeting

Implications for the buyer's cost stack:

Comparison with a non-bulk building: in a comparable Boca Raton condo without a bulk contract, the buyer would subscribe directly to Spectrum at 80 USD per month for internet and would either keep cable (added 80 USD per month) or use streaming (YouTube TV at 83 USD per month). Total: 80 to 163 USD per month. The bulk arrangement is therefore included rather than additional, which the HOA fee level reflects (the same 2-bedroom in a non-bulk building would have an HOA fee closer to 850 USD per month).

Key risk: the 10-year contract runs until 2034. If Hotwire raises its rate or if a competing fibre operator emerges before then, the association cannot easily switch. The buyer is committed to the bulk pricing structure for at least 8 years from the date of purchase.

Common mistakes Canadian buyers make

Mistake 1: Trusting the listing description that says "internet included." The listing or the broker may say internet is included, but the bulk agreement may cover a baseline tier insufficient for the buyer's needs. A buyer who works from home and needs gigabit symmetric should verify the included tier in the bulk service agreement, not in the listing.

Mistake 2: Not requesting the bulk service agreement pre-closing. The Declaration and the budget show that a bulk contract exists; only the service agreement shows the term, the cancellation rules, and the upgrade options. A buyer who closes without reading the service agreement is committing to whatever the document contains.

Mistake 3: Assuming the bulk fee replaces the entire telecom budget. A bulk contract typically covers internet and basic cable. It does not cover mobile service, premium streaming services, telephone landline (in 2026, increasingly excluded), or smart-home upgrades. A snowbird who wants YouTube TV, a US mobile line, and a security service still pays separately for all three.

Mistake 4: Underestimating the contract term. Bulk contracts negotiated by developers (during the construction phase, before owners take control of the board) commonly run 10 years and can include automatic renewal clauses extending another 10 years if neither party cancels. A buyer in year 2 of such a contract is bound for 8 to 18 more years, depending on the renewal mechanic.

Mistake 5: Ignoring the special-assessment risk for fibre upgrades. When a bulk contract is renegotiated mid-term to upgrade to fibre or to a higher speed, the association may impose a one-time special assessment to cover the construction costs (typical 500 to 2,000 USD per unit). A buyer who closes shortly before such an assessment is responsible for paying it. The minutes from the past 12 board meetings will usually flag a planned upgrade.

Mistake 6: Confusing the bulk contract with a "preferred provider" arrangement. Some HOAs negotiate a discount with a provider (Spectrum, Xfinity) that owners can opt into individually but are not forced into. This is not a bulk contract; the cost is not in the HOA fee. A buyer who reads "preferred provider" in the documents should not assume the cost is included.

Mistake 7: Buying based on the bulk fee being lower than retail without modelling the lock-in. A bulk fee of 80 USD per unit per month is cheaper than a 90 USD per month retail Spectrum plan, but the lock-in cost is the inability to switch for 10 years. If a fibre competitor enters the market and offers 50 USD per month for the same speed, the bulk-bound owner pays 30 USD per month more for years.

Action checklist before closing on a Florida condo or HOA property

The order matters: documents drive the financial model, not the other way around.

1. Request the four documents from the seller's broker or the HOA management company: Declaration of Condominium (or HOA Declaration), current annual budget, bulk service agreement, last 4 board meeting minutes.
2. Locate the bulk telecom clause in the Declaration (typically under "Common Expenses" or "Telecommunications").
3. Verify the budget line for bulk telecommunications and divide by the number of units to obtain the per-unit monthly cost.
4. Read the bulk service agreement for: provider name, term and remaining duration, services included, baseline speed, upgrade pricing, cancellation provisions, automatic renewal clauses.
5. Compare the bulk speed to your actual needs: if working from home or running smart-home video, verify the baseline tier is sufficient or budget for the upgrade.
6. Review the past 4 meeting minutes for any discussion of bulk contract renewal, fibre upgrade, special assessment, or owner complaints about the provider.
7. Model the bulk-versus-retail calculus using the worked example above as a template. Confirm whether the HOA fee is genuinely lower than a non-bulk equivalent or whether the bulk contract is above-market.
8. Consult a Florida-licensed attorney for review of the bulk agreement if the contract term exceeds 5 years, if the HOA is in early years post-developer turnover, or if the cancellation provisions appear unusual.
9. Use the 3-day cancellation window (per § 718.503) on the FAR/BAR condo rider if material concerns about the bulk contract emerge during document review.
10. Document the bulk service tier in writing with the broker and the seller so the buyer's expectations match the service actually delivered post-closing.

FAQ

If I buy a unit in a building with a Hotwire bulk contract, can I refuse the service and pay less HOA fee?

No. The bulk contract cost is allocated as a common expense per the Declaration and § 718.115(1)(d). The buyer cannot opt out for cost-allocation purposes, with three narrow statutory exceptions (hearing-impaired or legally blind owners alone, SSI recipients, food-assistance recipients).

Can the association cancel the bulk contract if owners are unhappy?

Yes, by majority of voting interests at the next regular or special meeting, per § 718.115(1)(d). In practice this requires organizing a coalition of owners and forcing a vote, which is uncommon unless the contract is materially overpriced or service quality has collapsed.

Does a bulk contract include cable television automatically?

No. In 2026, many bulk contracts have shifted to internet-only as cable consumption declines. The buyer must verify the specific services included by reading the service agreement.

What if the bulk contract was signed by the developer before owner turnover?

Developer-signed bulk contracts are common and typically run 5 to 10 years. They remain binding after owner turnover unless cancelled by majority vote at the next meeting. The buyer in a recently-turned-over building should verify the contract term and the cancellation mechanic before closing.

Can I subscribe to a different ISP in addition to the bulk service?

Yes, technically. There is no legal restriction on a unit owner subscribing to a competing ISP. The result is paying twice for internet: once through the HOA fee for the bulk service, and again to the new provider. This is rarely worthwhile unless the bulk service is genuinely insufficient (rare in newer Hotwire deployments at gigabit speeds).

How does this apply to a single-family home in an HOA-governed community?

The HOA equivalent statute § 720.309(2) authorizes bulk contracts for HOA communities as well. In practice, bulk telecom is rarer in single-family-home HOAs than in condos because of the higher per-unit construction cost of running fibre to dispersed homes. When it does exist, the same buyer-side review applies.

What about Florida cooperative units (housing co-ops)?

The cooperative statute § 719.107(2)(b) provides parallel authority. Cooperatives are less common than condos in Florida and the bulk telecom mechanics are similar; the buyer should request the same four documents.

Does the 3-day cancellation window in the FAR/BAR contract help me here?

Yes. The FAR/BAR condo rider (per § 718.503) gives the buyer 3 business days after receipt of the condominium documents to cancel without penalty. A buyer who discovers a problematic bulk contract during document review can use this window to walk away. The window does not exist for HOA properties under Chapter 720, where the buyer's protection comes from the conditions in the purchase contract itself.

Editorial team

CanadaFlorida Editorial Team. Research drawn from primary public sources cited at the bottom of every guide: Florida Statutes (Chapters 718, 719, 720), the Florida Department of Business and Professional Regulation, the Florida Bar Association's condominium law materials, and the standard FAR/BAR purchase contract forms. Every figure, rate, threshold, and deadline in this guide is drawn from a verifiable primary source listed at the bottom of the page. The article is updated whenever the underlying rules change, with a fresh review date stamped at the top.

Essential disclaimer

Educational purpose only. This document is reference information. It is not legal, tax, accounting, real estate, or financial advice and does not create a client-professional relationship. Florida statutes change and bulk-telecom contract structures vary significantly by association and by provider. Before any concrete purchase decision, consult a Florida-licensed attorney specialized in condominium or HOA law for review of the specific Declaration, budget, and bulk service agreement applicable to the property under consideration. The 3-day cancellation window under § 718.503 is a critical buyer protection that should not be relied upon retroactively.