How to get a release of solar panel lien

Question

So a seller has 40 K worth of solar panels that they put on their house that is making it a bit hard for it to sell. Is there a way to have the solar panel company release the lien without releasing the person that actually agreed to the solar panels in the first place?

Chris Davidson · Answer

@Joe S. have it paid off in escrow. Or have the seller pay it off with a loan not collateralized by the property.

Eliott Elias · Answer

There's no way I've found to release them.

Chris Seveney · Answer

@Joe S.

The solar panel company will not release the lien because it’s secured by the property

They release it and go unsecured then the loan could be wiped by a bankruptcy

Chris Mason · Answer

The standard thing that happens is that whatever is left of that $40k outstanding amount owed goes to pay off that debt, so the house can be delivered free and clear of clouds on title as specified in the purchase contract.

If the buyer is an idiot, or the market is so hot that the buyers are forced to behave like they are, then you do sometimes see buyers take over the solar lease or solar loan (PACE loans are common in California) or solar whatever it was.

Chris Davidson · Answer

No, as it wouldn't make sense for them. If the seller has the equity somewhere else just get a loan and pay it off. Or let it be paid off with the sale. Unless he has less equity then closing cost and the solar panel it isn't an issue. If he has less then he is underwater and going to have to come up with money from somewhere to get rid of it.

Put yourself in the shoes of the solar company would you give up your position to make it easier for who owes you money to no pay?

Joe S. · Answer

Have you heard of a solar panel company collateralizing onto a different property?

How to get a release of solar panel lien

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