How Solar Panels Affect Transactions

Your Paid Off Panels

If the solar panels are fully paid off, they are treated the same as any other fixture in Paragraph 2 of your TREC sales contract.

Financed Panels

If the panels were financed, the solar panel company has likely placed a lien on the property. Paragraph 9B(4) of the TREC contracts make it clear that all existing liens must either be satisfied by the seller at closing or assumed by the buyer. The solar panel company might also have its own requirements that must be satisfied if the home and panels are sold.

Sellers should review the contract they signed and contact the solar panel company—preferably before the property is listed. Sellers and your Realtor will need to calculate the cost of satisfying the solar panel lien in their estimate of proceeds. If the lien is going to be assumed by the buyers, the parties need to seek help from a private attorney. The buyers should also speak with their lender, since assuming the lien could cause issues with obtaining third-party financing.

Leased Panels

If the panels are leased, the Addendum Regarding Fixture Leases (TXR 1954, TREC 52-0) must be used. This form allows the buyers and sellers to negotiate whether the lease will be assumed and whether the panels will remain on the property. Additionally, the form requires sellers to deliver copies of the solar lease to the buyers, allows the buyers to terminate the sales contract if the sellers fail to timely deliver copies of the lease, and reiterates that all liens must be satisfied at closing or assumed by the buyers.

Again, the solar company may have additional requirements that the buyers must satisfy before the lease can be assumed, and the assumption of the lease could cause issues with the buyers obtaining third-party financing. The buyers would need to consult with a private attorney and their lender to address any issues that arise relating to the solar lease.

Cindy Calvillo, REALTOR

Abby Realty, LLC

713-497-9620

ccalvillo2014@gmail.com