We mainly buy in Arizona. Last year we purchased 50+ with solar. Rough numbers: 25% we were able to get the solar company to file a UCC-3 release. 25% buyer purchased with solar on and the UCC in place with a risk some day the solar company could come pick up their equiptment, title issued Alta-50 policies for the lenders to approve. The other 50% we removed them and did the steps outlined above.
Very confident in this approach of removal and notification of the solar company.
Best,
I would not assume the solar lien automatically survives just because the solar company was not named in the foreclosure. First, you need to find out exactly what was recorded. There is a big difference between a UCC filing and a lien properly attached to the real estate. A lot of these solar filings do not give the company as much power as they claim, and some may have expired or been filed the wrong way.
As for the delay, there usually is not a quick way to just ignore a valid lien because the company will not respond. At this point, daily calls are probably a waste of time. The better move is to have a Florida real estate attorney send a formal demand letter to the company or its registered agent asking for a payoff, release, or written position by a firm deadline.
If the lien is invalid, expired, or not properly attached to the property, your attorney may be able to clear it through a court action such as quiet title, declaratory relief, or in some cases reforeclosure. Also, in many solar cases, the company's real remedy may be limited to the equipment itself, not the house as a whole.
Thank you very much for your answer Damon. It is a UCC-1 fixture filing. UCC-1 initially filed with the county and then, they re-recorded it in the state before 5 years. Would we be able to get a title insurance on this property? We were told that this would create cloud on the title. What do you think? Thanks in advance.
My gut answer is: yes, you may still be able to get title insurance, but probably with an exception unless your title company or attorney can show the solar filing is defective, lapsed, or no longer properly perfected as a fixture filing. Also remember, even a valid fixture creditor’s remedy may be more about the equipment than the whole house. This is one where I would have a Florida real estate attorney and the title underwriter review the exact county filing, the continuation filing, and the dates before assuming the lien is still fully enforceable.
UCC-1 is a personal property fixture filing. Remove the panels, store them and notify the solar company they have 90 days to come pick them up then they will be disposed of.
Provide photos of no panels on the property to your title company, they will be able to issue clean policy with proof no panels are on the property.
You did not sign a lease or any other agreement with the solar company, therefore their only recourse to enforce the agreement is against the prior owner.
Thanks Ben for your suggestions. It sounds very good in theory but I wonder if it really works in practice. Have you ever tried if it really works or not? Or do you know someone who tried it and worked for them? Thanks again.
