Solar Electricity generators. There are many benefits to having a home with solar panels, including reducing or eliminating electric bills, reducing carbon emissions, and hopefully improving the value of the home.
Did you know having solar panels on a home could impact the transaction in a major way? It’s dependent on three factors: whether the panels are paid off, financed, or leased. If you’re considering buying or selling a home with solar panels, here’s what you should know.
Solar Electricity generators :
Paid off Panels
If the panels are paid off, they’ll be treated as any other fixture in the home and with no major impact on the transaction.
Financed Panels
If the panels are financed, there’s a chance that the solar panel company has placed a lien on the property, which must be satisfied by the seller or transferred to the buyer at closing. In this case, sellers are encouraged to review contracts and calculate the costs of satisfying the lien before listing the property, and buyers are encouraged to consult with their attorney or lender before signing a purchase agreement.
Leased Panels
If the panels are leased, then the Addendum Regarding Fixture Leases form, reiterates that the remaining costs of the panels must be satisfied by either the buyer or seller at closing.
The escrow must be used to negotiate the specifics of who will assume the lease and if the panels will remain on the property. The seller is required to deliver copies of the lease to the buyer. However, the buyer has the right to terminate the contract if the copies of the lease aren’t delivered in a timely manner. In the case of both financed and leased panels, the solar company may have additional requirements that must be satisfied if the home and panels are sold. Please consult your attorney or lender to address any questions or issues.
We have seen all of the varied conditions above and have negotiated with buyers and sellers in this area. But it needs to be cleared up in escrow. I do not recommend any specific solar companies. And yes, they call me all the time too.