One of the ways to get solar power is through an independent solar energy producer who sells or leases the solar energy equipment to the property owner.
When the homeowner enters into such a contract for purchase or lease, he/she would sign a contract of sale or lease with a UCC financing statement. Signed sale or lease documents can then be recorded at the county recorder’s office and become of part of property title history.
California home sellers must disclose this to the buyers and then make sure the responsibility for payment for solar equipment (either purchase or lease contracts) is transferred and assigned to the buyers and that sellers are held harmless from further liability on those contracts.
California home buyers must make sure they know about detail of their rights and responsiblities on the solar equipment purchase or lease contracts, including payment responsibilities, and that they probably must hold the sellers harmless from further payment obligation.
When a California homeowner sells his/her home and it is subject to a lease or contract of sale for solar energy, they need to review documents and assign to the buyer who purchases the home. The solar energy equipment vendor/lessor or financing agent must approve the new property owner prior to closing. Financial requirements for that qualification might be strict. If those cannot be met, the financing agent will require that the home seller remain obligated.
When a solar equipment contract of sale or lease is on title, sellers must disclose to the home buyers required arrangements for assignment of rights and responsibilities to new home buyers.
By Harrison K. Long – Professional real estate representative and Realtor, Coldwell Banker Residential Brokerage, Orange County, CA – CAL BRE 01410855. Source of some information for this article was Solar America Board for Codes and Standards – www.solarabcs.org. This is for information only and is not the providing of professional legal or real estate services. If you want or need to transfer your interest in a solar lease or purchase contract for your home, you should work with an experienced real estate attorney.
Solar Equipment Purchase and Lease Contracts in California Home Selling