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Board & governance

A utility or fiber company wants an easement across our HOA common area. How should the board respond?

By OurHOA · General information · Revised

How an HOA board handles a utility or fiber company's easement request on common area: who can sign, terms to negotiate, restoration, insurance and recording.

Part of the HOA board handbook: vendors, projects and upkeep.

The short answer

Don't sign the form the company mails you. Utility and fiber companies send their own easement agreements, and those forms are written to give the company as much room as possible: a wide strip, any utility purpose, the right to assign, and little said about fixing your lawn. The board's job is to find out whether the company already has a right to be there, confirm who in the association can grant a new easement, and then negotiate a document that names the exact strip, limits the purpose, and makes the company restore what it digs up. Have the association's attorney review the final version, and make sure it gets recorded. Most requests take six to ten weeks when the board works through them in order. Rules vary by state and by your declaration, so read this as a guide to the process, not legal advice for your community.

Find out whether they already have the right

Before negotiating anything, write back and ask the company which recorded instrument it is relying on, or whether it is asking for a new easement. Then pull the recorded plat and the association's title policy for the common area tract. Many subdivision plats already dedicate utility easements along lot lines and street frontage. If the fiber route runs inside an existing platted utility easement, the company may not need the board's permission at all, and what the board can still negotiate is notice, the construction schedule and restoration. If the route crosses open space, a pool lot or a greenbelt with no existing easement, the company needs a new grant from the owner of that land, which is the association. The type of company matters too. In Texas, a gas or electric corporation has the power to condemn land and easements under Utilities Code section 181.004. When the electric co-op asks nicely, the real negotiation is usually about route and terms, not whether the line gets built. A private fiber company's rights depend on its state certification and local permits, so ask it directly what authority it holds.

Who in the association can sign

Several state statutes give the board this power unless the declaration says otherwise. Texas Property Code 82.102(a)(10) lets a condominium association, acting through its board, grant easements, leases, licenses and concessions through or over the common elements. Section 204.010(a)(8) gives the same power to property owners' associations covered by chapter 204, which applies only to subdivisions in certain large counties such as Harris; other Texas HOAs look to their declaration. Colorado's CCIOA lists the same power in 38-33.3-302(1)(i). Florida Statutes 718.111(10) lets a condominium board grant, modify or move an easement over the common elements or association property without a vote of the unit owners, unless the declaration prohibits it. Florida HOAs under chapter 720 have no parallel section, so the declaration controls. An easement is not a sale, and the difference matters. Colorado requires 67 percent of the votes to convey common elements under 38-33.3-312. A request for a permanent, exclusive pad for a substation or equipment building starts to look more like a conveyance than an easement, and the attorney should tell the board which approval rule applies. If your declaration requires a member vote for any easement, follow it even where the statute would let the board act alone. Our guide on whether an HOA can sell or lease common area property covers the vote thresholds and the tax side of any payment the association receives.

Terms to put in the easement

Mark up the company's form or send back your own list. The terms that matter most: Location. A legal description and a survey exhibit showing the exact strip, its width, and whether the work is underground, overhead or both. Reject language granting rights 'over, under and across the common area' with no map. Purpose. Limit it to what the company is building, such as 'fiber optic cable, conduit and related equipment,' rather than 'any utility purpose.' Name the size and location of any above-ground cabinet or pedestal, and require it to be screened or painted. Nonexclusive. The association keeps the right to use the strip and to grant other easements that don't interfere. Restoration. The company restores sod, irrigation lines and heads, sidewalks, curbs and paving to their prior condition within a stated number of days, such as 30, and pays for repairs the association makes if it doesn't. Notice. Written notice before entry, such as 5 business days, except in emergencies. Insurance and indemnity. The company indemnifies the association for damage and injury caused by its work and its contractors, carries stated liability limits, and names the association as an additional insured. Our guide on checking a vendor certificate of insurance explains how to read the certificate. Relocation and abandonment. If the association later needs the strip for a project, the company relocates at its own cost. If the company abandons the facilities, the easement ends and the company removes what it built or leaves it only with the board's written consent. Costs. The company pays the association's attorney fees for reviewing the document, and the association gets a fully signed copy with the county recording information.

When the request comes with a service offer

Fiber companies often pair the easement with a pitch: build a network to every home, and maybe a bulk service deal for the whole community. Keep those two documents separate. The easement should stand on its own terms and should not expire or change if a service contract ends. Watch for exclusivity promises in either document. Federal rules at 47 CFR 76.2000 make exclusive video service clauses in multiple dwelling unit contracts void, and the rule's definition covers gated communities and other centrally managed residential developments along with condo buildings. A second provider may ask for the same easement next year, and the board should be ready to treat that request the same way. If the board does want a community-wide service agreement, our guide on negotiating a bulk internet agreement for an HOA walks through that contract.

A sample timeline and motion

Week 1: request received; the board acknowledges it in writing and asks which recorded instrument the company is relying on, for a route map, and for its standard form. Weeks 2 to 3: the manager or a director pulls the plat and title policy, and walks the route with the irrigation contractor to mark valves and lines. Weeks 3 to 5: the attorney reviews the form and the board sends a markup with its terms. Weeks 5 to 8: back-and-forth on the exhibit and restoration language. Week 8: vote at an open board meeting, or a member vote if the declaration requires one. Week 9: the document is signed and recorded, the certificate of insurance is on file, and construction can start. Afterward, a director walks the route with the company's inspector before signing off on restoration. A motion the board can adapt: 'Moved to grant [company] a nonexclusive easement, 10 feet wide, along the route shown on Exhibit A for fiber optic cable, conduit and related equipment, on the terms in the draft reviewed by the association's attorney dated [date], and to authorize the president to sign the easement and deliver it for recording once the company has provided a certificate of insurance meeting the stated requirements.' A notice paragraph for owners: 'A fiber company will install underground conduit along the greenbelt behind Oak Court between [dates]. The company is responsible for restoring grass, irrigation and paths within 30 days of finishing. Please report any damage to [contact] with a photo and location.'

Mistakes boards make with easement requests

Signing the company's standard form without an exhibit, which can leave the entire common area burdened for good. Letting crews start before the easement is signed, the insurance certificate is on file and the irrigation lines are marked. Forgetting that 811 locate requests mark the member utilities' own lines, not the association's private irrigation and lighting circuits, which get cut all the time. Taking a payment without asking the association's tax preparer how it will be reported. Losing the recorded copy, so a future board can't tell who has rights where. And saying yes to one provider and stalling the next, which invites a fight the board doesn't need. Put the recorded easement, the exhibit and the restoration sign-off in the permanent records with the plat.

Sources

These guides are general education for HOA boards and residents, not legal, tax, or financial advice. Rules vary by state and by your community's governing documents - check with a professional for your situation.

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