Transferring a solar lease when selling a home can be a multi-step process. While the specifics can vary depending on the terms of your lease and your solar provider, the following steps can provide a general guide for your situation in Phoenix, Arizona:
Review Your Solar Lease Agreement.
Begin by thoroughly examining your solar lease agreement. This document will contain the conditions for transferring the lease to a new homeowner. If there are parts of the agreement you find unclear, talk with your Realtor who should have expertise in solar lease transfers.
Reach Out to Your Solar Company.
Inform your solar leasing company about your plans to sell your home and ask about the process for transferring the lease to the new homeowner. They should be able to guide your Realtor through the necessary steps and provide any required paperwork.
Disclose to Potential Buyers
Make sure potential buyers are aware of the solar lease and its terms in your purchase contract. This information should be included in the home listing and discussed during showings. Ensure that buyers understand that they will be taking on the solar lease payments if they purchase your home.
Credit Check for the Buyer
Most solar leasing companies require the homebuyer to undergo a credit check. This step is necessary to verify that the buyer meets the solar company’s credit requirements for lease approval.
Complete the Solar Lease Transfer Paperwork
After the buyer has agreed to assume the lease and passed the credit check, it’s time to fill out the lease transfer paperwork. This generally includes a transfer agreement outlining the terms of the transfer, the remaining payments, and any other responsibilities the homebuyer will have.
Coordinate UCC-1 Filing Removal
A Uniform Commercial Code-1 (UCC-1) filing is often placed by solar companies on homes with solar panel leases. This must be removed to clear the title before closing. Your title agent and Realtor will coordinate with the solar company to ensure the UCC-1 filing is removed from the home. This step is especially important if the buyer plans to use any type of financing to purchase the home.
Close on the Home Sale
The lease transfer should be finalized during the closing process. Your title agent will manage this process, ensuring the transfer of the solar lease is correctly documented in the closing papers.
Notify the Solar Company
Once the home sale and lease transfer are complete, it’s essential to inform your solar leasing company. They will need to update their records and start billing the new homeowner.
As always, maintaining open communication with all involved parties — your Realtor, the buyer, the solar company, and your title agent — is key throughout this process. Remember that each solar lease can have different terms, so always ensure you have the most current and accurate information.