As California becomes the first state to mandate solar panel installation on all new homes built as of the year 2020, with the commercial sector likely to follow by the year 2030, here are some key points that will help you ensure a successful escrow given the mandates. There are many ‘pro’ and ‘con’ arguments available for you to research, but we have been discussing the issue of of solar panel leases and the transfer of real property at length for some time. To learn more, read on:
While residential solar panel installations have increased more than 50% each year since 2012 nationwide, disputes over solar panel leases have simultaneously increased during the transfer of properties. Ensure your successful closing by considering these helpful tips and considerations for transactions involving solar panel lease agreements.
Preopen your escrow with Fidelity National Title and use the time early in the listing or prelisting period to be sure you completely understand the terms of the agreement as it applies to the transfer of the lease. It is better to be prepared and informed ahead of time before going into contract with a potential buyer.
Know Your Options
Address possible scenarios for handling the lease transfer well before the close of escrow (or before the official listing) to further help ensure a smooth process of the sale.
Keep Your Solar Panel Leaseholder Involved
Many companies have designated specialists available and assigned to assisting buyers and sellers through the lease transfer process.
Check the Records
Ensure that any solar easements have been officially recorded in public records so that it is available to be noted during the title search process. Such an omission can potentially create issues for future buyers.
Communication is Key
Ensure that your escrow officer is informed. The more information you can offer, the better. Make sure you alert your escrow team to your current lease agreement, status of the agreement and requirements from the leaseholder.
While the potential for issues with the transfer of a solar panel lease always exist, your team at Fidelity National Title is here to help you through the process.
Please let us know if you have any questions or need for further information.