Buying a Home with Leased Solar Panels?
What Do You Need to Know?
You found the home you love. You're ready to write the offer. You turn to your Realtor and ask "What about the solar panels?"
Image Source: SunPower
I recently listed and and sold a property that had leased solar panels. It added an interesting layer to the transaction. Here are a few points that may be useful to anyone considering purchasing a property with leased solar panels:
- You need a copy of the lease contract to review. The seller should be happy to provide you with a copy.
- The contact information for a solar company rep should be made available to you so you have the opportunity to pose any questions including those regarding the details of the lease transfer.
- The solar lease contract should have buyout price and terms.
- The price to remove the solar panels may be the same as the lease buyout price. Don't assume the panels can be removed and returned.
- The buyer must agree to take over the lease on the terms agreed to by the seller. *In a buyer's market, it may be possible to negotiate that the seller pay off part or all of the solar lease.
- The buyer must qualify for and agree to take over the lease under it's existing terms.
- The buyer must sign the lease transfer agreement.
- The monthly lease payment must be included in the buyer's debt to income ratio, so it's important to verify with the lender that the monthly lease payment does not affect the buyer's ability to qualify for financing.
It's imperative that buyers do their investigation and understand that to which they are agreeing.
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JILL MURTY | 949.355.5321 | JillMurty.com