Solar Panels: See the Light!

//Solar Panels: See the Light!

Solar Panels: See the Light!

You have seen the houses with solar panels.

The solar panels can help generate electricity and hot water to help the owner and the environment.

Listing brokers: ensure you ask the seller about the solar panels. Do you own the solar panels? Any problems with the solar panel systems? Do you lease or finance the solar panel systems? Also, the seller should describe the solar panels and financing and leasing and problems in the seller disclosure (e.g. can even attach the solar panel agreements/documents and bills).

The SCR310 contract can handle the solar panel issues when financed or leased with an attorney’s assistance depending on the parties’ desires (e.g. assuming the lease, assuming the loan, removing the solar panels, leaving the solar panels, repairing the solar panels, adding solar panels, providing all solar panel documentation, paying off the solar panels, clearing title of the solar panels liens, indemnification).

SCR310 alerts buyers to inquire about solar panels in Section #3 PROPERTY and removing liens/encumbrances Section #4 CONVEYANCE/CLOSING/POSSESSION and how to handle solar panels in Section #22 ADJUSTMENTS:

"Buyer acknowledges opportunity to inquire about owners association issues, common area issues….memberships, lease issues and financed equipment prior to signing Contract. Leasing issues and items and financed equipment see Adjustments (e.g. tenants, leases, future vacation renters, SC vacation rental act reservations, rents, deposits, documents, solar panels, fuel tanks, with fuel, alarm systems, satellite equipment, roll cards)."

"Seller conveys the Property to Buyers… Conveyance shall be fee simple… Seller agrees to convey marketable title with a properly recorded general warranty deed free of encumbrances and liens except as herein stated…"

"Buyer and Seller agree to settle or prorate, annually or as appropriate; as of Closing Date: (A) utilities and waste fees issued after Closing which include service for time Property was owned/occupied by Seller….(C) any rents, deposits, fees associated with leasing…"

Buyers can use SCR311 due diligence addendum to provide a way to timely/properly terminate the Contract if the deal is not to the Buyer’s liking (e.g. the solar panels’ lease is too expensive).

Buyers should read the seller disclosure and inquire about solar panels prior to contract and or during the due diligence period to determine if the solar panels meet the buyer’s desires.

Buyers and their attorney can tailor the contract with language regarding the solar panels as buyers desire (e.g. assuming the lease, assuming the loan, removing the solar panels, leaving the solar panels, repairing the solar panels, adding solar panels, providing all solar panel documentation, paying off the solar panels, clearing title of the solar panels liens, indemnification).

Got solar panels? Call the SCR legal hotline asap. 803-772-5206

Posted by: Byron King on 01/03/19 (This information is only accurate as of 01/03/19. You must contact SCR for updates and changes to this information after 01/03/19 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org)

By |2019-01-03T15:42:04+00:00January 3rd, 2019|Legal FAQs|0 Comments

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