What to look out for when selling homes with solar panels…

Kathy Mehringer: Solar Panels – Leased or Owned?

 

Submitted by Kathy Mehringer -… on Fri, 09/20/2013 – 11:56am

This seemed like a good time to post a message regarding Solar Panels and the real estate transaction! Whether or not the seller owns or leases these energy savings panels is an important factor in the contract negotiations between buyers and sellers.  In order to assist in the facilitation of this discussion/negotiation you may wish to review the tips below.  

1)  Listing agents:  When listing a property with solar panels ASK the seller if they are owned or leased.
a. If the solar panels are leased request a copy of the lease agreement.
b. Provide  the lease agreement and the terms of the agreement to the buyer by way of an attachment to a counter offer  or contract addendum.
c. Amend  Paragraph 8 “Items Included In And Excluded From Purchase Price” of the Residential Purchase Agreement to state that the seller does not own the solar panels.
d.  In addition, include verbiage  that requires the buyer to both qualify for (within the timeframe specified in paragraph 14B of the Residential Purchase Agreement) and to assume the existing solar panel lease agreement unless otherwise agreed in writing between the parties.
e. Advise the seller that the buyer may ask for a price concession equaling  the remaining balance on the lease OR ask that the lease be paid off.
 
2)  Buyer’s agents:  When selling a property with solar panels ASK the listing agent if they are owned or leased.
a. If the agent says they are owned  include language in the purchase agreement requesting proof of ownership.
b. If the agent says they are leased include a request  for a copy of the lease agreement  as a term/condition of the purchase agreement.
c. If leased the buyer should provide the lender with a copy of the lease to determine whether or not the payments will affect the buyer’s debt/income ratio.
d. Buyer should be advised to contact the leasing company to determine what, if any, steps need to be taken in order to qualify for the lease.
e. Buyers may wish to negotiate a lease pay-off as a condition of the purchase agreement or some other concession.
 
3)  The buyer should contact the leasing company directly for additional information.  For example: (i) “In the event wood pest fumigation is required and should the integrity of the solar panels be compromised would warranty be negatively impacted?”  (ii) “Will the leasing company inspect the panels prior to close and after the fumigation to insure everything is in good working order?” (iii) “If there is damage to the solar panels, who is deemed the responsible party for necessary repairs/replacement?”
 
Asking questions gets to the truth, getting to the truth makes for a smoother transaction; smoother transactions mean happier clients and agents!
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About erolbayraktar

Erol Bayraktar, BRE 00179251 Manager Coldwell Banker Previews International Irvine Erol Bayraktar brings with him a broad background as branch manager of the Coldwell Banker Quail Hill – Irvine office. Erol is an Orange County native and began his real estate career in 1994. Erol’s success and extensive experience in selling homes in the luxury market proves to be a cherished resource for Coldwell Banker agents. He has earned numerous top-producer awards with the successful completion of more than 100 transactions. Erol has an extensive track record of helping his agents achieve top producer status while utilizing his internet expertise, personal coaching, training and business development. He works constantly with agents to develop marketing materials and advertising programs that differentiate themselves in the marketplace and generate income-producing leads. He values the benefits that technology can provide to agents in order to help them become more efficient and more productive. “I constantly strive to take our sales associates and office to the next level. It is my goal for our customers to continue to be extremely satisfied with the services we provide through our professionalism, market knowledge, personal attention and complete family of services experience. It is my goal to help others enjoy the same levels of success that I have been fortunate to enjoy!” Coldwell Banker Quail Hill – Irvine agents benefit from a manager who is available 24/7 to assist with any situation. Erol provides backup for his agents with various situations in which they need advice or support. Prior Sales Manager Prudential California Realty Yorba Linda Erol Bayraktar brings a broad background to the job of managing an office. His Experience includes a track record of success in real estate as well as helping agents achieve top producer status as sales manager and trainer using his expertise in personal coaching and business development. Having grown up in Yorba Linda, Erol began his Real Estate career in 1994. Since then, he has constantly striven to work in the Luxury markets and higher end price ranges. Erol has been recognized by his former companies for his outstanding production in the luxury market. He has listed and personally sold homes up to $4.4 million dollars and managed listings for his team up to $11 million dollars. Erol’s extensive experience in selling estate homes will prove to be a wonderful resource for Prudential’s agents, who already have a strong presence with Fine Homes in Yorba Linda and across North Orange County. Rich Cosner, owner of Prudential California Realty, is thrilled to welcome such an exciting addition into his Prudential family. “Erol is a knowledgeable and very professional addition to our management team,” says Rich. “His experience in the high end price ranges makes him a perfect fit for our Yorba Linda branch. I am confident that his experience and background will be a tremendous advantage to our agents in our Yorba Linda marketplace!” Top Producer Experience As a native of Orange County, Bayraktar applies his impressive local market knowledge to his practice – which has earned him numerous top-producer awards and has ensured his successful completion of more than 100 real estate transactions. After spending the past two and a half years focusing on Luxury Estate Sales with the McMonigle Group, Bayraktar now brings his unwavering commitment to client service and proven sales talents to Prudential California Realty. Coaching & Training Agents for Success Erol is equally thrilled to work with Prudential California Realty and the Sales Associates in the Yorba Linda office, who have already been recognized as the top ranking real estate office for the area for all of 2009. “I look forward to taking the sales associates and the office production to an even higher level. It is my goal for our customers to continue to be extremely satisfied with the services we provide through our professionalism, market knowledge, personal attention, and complete family of services experience. I have always wanted to be in a leadership position where I can help others enjoy the same success that I have been fortunate to enjoy!” Availability 24/7 Agents in the Yorba Linda Office benefit from a manager who is available 24/7 to assist with any situation. Erol provides back up for his agents with various situations in which they need advice or support. A Passion for Excellence in Business Development, Technology and Marketing Erol works constantly with his agents to develop marketing materials that differentiate themselves in the marketplace and generate income-producing leads.

Posted on October 9, 2013, in Uncategorized. Bookmark the permalink. Leave a comment.

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