Solar panels are increasingly popular, and many homes on the market have solar panels nowadays.
If you are looking to finance a home with solar panels, you should consider the following rules:
Many solar companies will file a UCC-1 Financing Statement on the title of the home. Mortgage lenders will likely request it to be removed so they can secure their lien. After the mortgage is recorded, the solar company can then refile the UCC-1.
Even though the home will be operating with solar power, it must maintain access to traditional electric utilities. The lender wants to ensure there is power to the property in the event the solar panels are inoperable.
If the solar panels are leased, the lender will want to see the fully executed copy of the lease showing the monthly payment. The lease must provide that the solar panels are removable without causing damage to the property. If damage does occur as a result of the removal of the panels, then the owner of the equipment is obligated to repair the damage and return the property to its original condition.
If you are considering financing a property with solar panels, contact us and we can help you.
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