You’ve secured a buyer, agreed on a price, and started preparing for your move. Then the title company raises a concern: a UCC-1 Financing Statement is attached to the solar equipment, or the buyer’s lender has questions about the solar agreement.
In today’s market, solar panels can add value to a home, but that value often depends on how clearly the agreement and documentation are presented. If you are dealing with a lease, loan, or an installer that is no longer in business, the process may require additional coordination during escrow.
The Solar Cancellation Resource Center (SCRC) is a national intake company that helps homeowners collect and organize their solar documentation. Once information is submitted, SCRC connects homeowners with a qualified law firm, such as Consumer Advocacy Law Group, where a licensed attorney may review the situation and discuss potential legal options.
Common Solar Scenarios During a Home Sale
When selling a home with solar, buyers are often evaluating both the property and the solar agreement. Most situations fall into one of the following categories:
1. System Ownership (Paid in Full)
If the homeowner provides documentation showing the system has been paid off, the panels are typically treated as part of the property. In many cases, the process involves transferring warranties to the new owner.
2. Active Solar Loans
If the system is financed, the lender may have a secured interest in the solar equipment through a UCC-1 filing.
Buyer Considerations:
Some buyers may be hesitant to assume an existing loan, especially if the terms differ from current market conditions.
Potential Challenge:
In some cases, the remaining balance on the loan may be higher than the value the solar system adds to the home, which may affect how the transaction is structured.
3. Solar Leases or Power Purchase Agreements (PPAs)
Leases and PPAs involve a third-party ownership structure, which may add additional steps to the transfer process.
Transfer Requirements:
The buyer may need to meet certain qualifications to assume the agreement.
Escalating Payments:
Some agreements include scheduled increases over time, which may influence a buyer’s decision during negotiations.
Understanding the UCC-1 Filing (Lien on the Solar Equipment)
If your system is financed or leased, a UCC-1 Financing Statement may be filed against the solar equipment.
While this is not a lien on the home itself, it is a secured interest in the equipment that may need to be addressed before the sale is finalized. In some cases, this filing may need to be released or adjusted prior to closing.
If there are delays or communication issues with the solar provider, a qualified attorney may review the situation to determine whether there are potential legal considerations.
What Happens if a Buyer Declines the Solar Agreement?
If a buyer chooses not to assume the solar agreement, homeowners may explore several possible paths:
- Buyout Options: Paying an amount determined by the solar provider to own the system
- Prepayment: Satisfying remaining obligations under the agreement
- Legal Review: If the homeowner provides documentation suggesting potential issues with how the agreement was presented, this information may be reviewed by a qualified law firm
A qualified attorney may determine whether the situation presents any legal options based on the documentation provided.
How SCRC Supports the Intake Process
SCRC does not perform a legal analysis. Instead, SCRC assists homeowners by organizing information so it can be reviewed by a qualified law firm.
This process may include:
- Document Organization: Homeowners provide their solar agreements and related paperwork
- Information Collection: Relevant system and agreement details are organized for clarity
- Law Firm Connection: SCRC connects homeowners with a qualified law firm, such as Consumer Advocacy Law Group, where an attorney may review the information
Plan Ahead Before Listing Your Home
Addressing solar-related documentation early may help reduce delays during escrow. If you are considering selling your home, submitting your information for intake may help you better understand your situation.
Organizing your documentation in advance can make the process more efficient when working with your real estate agent, title company, and any legal professionals involved.
FAQ: Selling a Home With Solar
Can a solar company prevent me from selling my home?
Not directly. However, a lien on the solar equipment may need to be addressed before a buyer’s financing can proceed.
Who pays transfer-related costs?
This is typically negotiated between the buyer and seller.
What if the system is not performing as expected?
If documentation is provided, a qualified attorney may review the situation as a potential issue.
Take the First Step Toward a Review
Ready to explore your options? Submit your information for a free, no-obligation intake. SCRC can connect you with the attorneys at Consumer Advocacy Law Group, who may review your agreement and assess whether any legal options could apply based on your specific circumstances.
- See If You May Qualify for Solar Cancellation Options: Take Our 60-Second Quiz
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- Connect with Attorneys at Consumer Advocacy Law Group: Find Us on Google My Business
Required Disclaimers
SCRC is not a law firm and does not provide legal advice.
Submitting your information does not create an attorney-client relationship.
SCRC is a national intake company that connects consumers with qualified law firms.
SCRC is not a law firm and does not give legal advice. SCRC does not advise any consumer contracted with the solar system to stop making payments without consulting an attorney first. Nothing in this communication establishes any type of attorney client relationship, SCRC is a marketing organization that connects consumers with qualified legal professionals.