How to sell a home in Utah with Solar Panels
Selling a House in Utah with Solar Panels is No Quick And Easy Task
There are more than 30,000 homes in Utah with solar energy panels installed on the roof and that amount is increasing each month. It can be a dreadful undertaking if not dangerous to fail to properly inform home buyers properly of your rooftop solar panel agreements and situation at the time of selling your house.
One of the most frequently made inquiries made to this our real estate attorneys law firm arises from the failure to successfully transfer instruments and contracts according to the agreement for your installed solar panels.
How to sell house fast
We understand selling homes with solar energy and can easily help real estate owners and those purchasing a property in affirmatively leveraging the constraints and finding advantages in matters involving solar panels, often consisting of new methods and possibilities in this rising arena.
But contract forms for the selling and purchasing of a house are typically provided by a local board of realtors and today those forms do not efficiently manage the new and only now evolving concerns arising from a sale with roof solar panels.
There is no one standardized solar panel ‘deal’ and the business terms consisting of ‘who owns the panels’ varies from one transaction style to another, and in many instances these installments are governed by differing state laws. But commonly, residential solar panel leases provide language quite similar to,. You agree that the solar panel system is the Company’s personal property under the Uniform Commercial Code. You understand and agree that this is a lease contract and not a sale arrangement. The Contractor owns the solar panel system for all purposes.
Obviously this creates issues when selling a house with solar panels on the roof that belong to someone else. It is popular that residential solar panel leases provide language very similar to: If you sell your home you can pass on this lease and the monthly payments.
How to sell a house quick with solar panels
The individual buying your residence can sign a transfer contract assuming all of your rights and obligations under this lease by qualifying in one of three ways: (1) the home buyer has a FICO score of 650 or greater; (2) the home buyer is paying cash for your home; or (3) if the home buyer does not qualify under (1) or (2 ), if the home buyer qualifies for a mortgage to acquire your home and the home buyer pays us a $250 credit exception fee.
Or, if you are moving to a new house in the same utility region, then where permitted by the local utility, the system can be moved to your new home. You are going to need to pay all costs associated with transferring the system,.
The right time also needs to be taken into consideration when entering into an agreement to sell a home,
You agree to give the Company at least 15 days but not more than 90 days prior written notice if you want someone to assume your lease obligations.
Many of the suppliers engaged in this business (. but not all ) file a UCC-1 financing statement in the real estate records that puts third parties on notice to their rights in the system. That fixture filing is in most states a lien or encumbrance against the system. But given that in many residential transactions, title companies do not search the UCC-1 indexes (. that are mainly used for business purposes), solar leases are routinely missed.
However, the express language of solar system leases can not be missed:
EXCEPT AS SET FORTH IN THIS LEASE, YOU WILL NOT SUBLEASE, ASSIGN, SELL, PLEDGE OR IN ANY OTHER WAY TRANSFER YOUR INTEREST IN THE SYSTEM OR THIS LEASE WITHOUT HAVING OUR PRIOR WRITTEN CONSENT.
That accepted, as suggested by the solar lease language above, there are alternatives and fertile, enabling and acceptable business terms that can provide substantial value to the real estate. The solar lease, as well as any electric purchase commitment need to be looked at in light of federal and state law (including tax laws) that stimulate new possibilities including create profit.
Shockingly, this is not only a non commercial problem. This firm regularly receives inquiries arising from commercial real estate transactions that have not adequately attended to matters of solar panels, PPAs, tax credits and the like.
Selling a house with solar panels is not for the weak of heart. There can be true legal jeopardy and substantial dollar liability for those neglecting to address the issues associated with solar panels. It we can assist you in positively leveraging the constraints and uncovering advantages in matters of transactions involving solar panels do not hesitate to give us a call.