As the solar industry continues its rapid growth, homeowners who have installed solar systems are often faced with new challenges when it comes time to sell their properties. Despite some uncertainty in the market, solar energy remains a dominant form of renewable power in the United States. As of 2024, solar installations are strong, with the commercial sector seeing solid growth. However, residential solar installations have seen a dip due to factors like rising interest rates and market uncertainty.
For homeowners looking to sell a property with a solar agreement, it’s essential to navigate the process with care. Solar agreements, often in the form of solar leases or Power Purchase Agreements (PPAs), allow homeowners to enjoy the benefits of solar power without the upfront cost of purchasing a system. However, selling a home with such an agreement can bring about unique hurdles.
5 Key Tips for Selling a Property Subject to a Solar Agreement
While over 4.2 million homes in the U.S. have adopted solar power, selling a home with a solar agreement can introduce complications. Below are five steps to help sellers and real estate agents navigate the process smoothly:
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Start Early and Disclose the Solar Agreement The selling process should begin with a conversation about whether the property is subject to a solar agreement. The terms of the solar agreement can affect the marketability of the property and can influence potential buyers’ decisions. Full disclosure is critical to ensure transparency from the beginning.
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Request a Copy of the Solar Lease Agreement Sellers should have a copy of the current solar lease or PPA available for review. If they don’t, it’s important for them to contact their solar provider and request it. Having the agreement on hand will help both the seller and the buyer understand the terms and conditions tied to the property.
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Seek Expert Guidance Solar agreements can be complex, and there are often misconceptions about their terms. Buyers and sellers alike must fully understand the agreement’s details, including any requirements or rights regarding the transfer of the lease. While many solar companies offer dedicated support for transferring leases, it may be beneficial to consult with an attorney to ensure all legal aspects are covered.
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Cover All Your Bases Working with a trusted title company, like American Real Title, can make a significant difference in the process. American Real Title can help identify potential title issues, such as unrecorded solar easements or other complications that may arise. Ensuring these are addressed early in the process can prevent delays during closing.
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Maintain Open Communication From the beginning, keep your closing team informed about the property’s solar agreement. The more information they have up front, the less likely there are to be unexpected hurdles or delays as the closing date approaches. Communication is key to ensuring a smooth transaction.
Conclusion
Selling a home with a solar agreement doesn’t have to be a complicated process. By starting early, reviewing the solar lease agreement, seeking professional guidance, and working with American Real Title to address potential title issues, sellers can help ensure a smooth and successful sale.
If you have questions or need assistance with a solar lease transfer, or if you want to know what your closing team needs for a successful transaction, don’t hesitate to reach out to American Real Title for expert support.