Solar Panels – Questions to Ask Before Contract

• If a seller has solar panels installed on the roof of their property, they should investigate whether the way those solar panels are financed or leased could impact a future transaction. Many sellers aren’t aware of these issues, so if you ask the right questions, you can set them on the path to success:

• Do you own the solar panels, or are they leased?

• If you own them, are they financed?

• If they’re financed, do you plan to pay the debt off before going under contract (or before closing), or will you ask a buyer to assume the debt at closing? Note: lenders may not allow a buyer to assume the debt, and there could be application and transfer fees.

• If they’re leased, do you plan to end the lease early or attempt to assign the lease to a buyer? Note: attempting to assign a lease could raise the same issues as attempting to assign a debt.