Ucc Filing For Solar Panels

Lenders who do not understand solar loans often believe any ucc 1 filing lien is on the entire home but it s only on the pv panels and equipment and not the home itself.

Ucc filing for solar panels. With the hero program they require a full property lien rather than just the solar panel system. To file the agreement the authorized ucc 1 is filed with the secretary of state sos and the county where. If you re not buying your solar panels with cash the manufacturer may place a lien or uniform commercial code filing on your property to make sure you keep paying for them. Sometimes as referred to as a ucc 1 filing a ucc 1 fixture filing or a ucc 1 lien this is a public document that the owner of the equipment the solar company files to indicate that they have the legal right to repossess the solar equipment in the event that the debtor you the homeowner fails to keep up with their payments.

If a ucc fixture filing is in the land records as a priority senior to the mortgage loan it must be subordinated. Register john o brien from the southern essex registry of deeds has issued a ucc solar panel advisory. Let s take a look why this might be the case. The source of confusion.

It is not a lien on your home. It is a financing statement confirming tesla s ownership and or financial interest in the leased or financed solar equipment. Check out this article from channel 7 news hank investigates leased solar panels. Home loan lenders and the ucc 1 lien.

Also the ucc 1 fixture filing won t stop you from taking on a ppa or solar lease. It helps prevent the sale of our equipment without our knowledge. One point that was brought up in this article is that most companies will file a lien or an encumbrance against your home. Compared to the many pace financing programs such as the hero program ppas and solar leases are a much easier solution for homeowners.

Solar panels can affect your mortgage qualification process. Filings are public and are easily viewed online at your sos s website. If a ucc fixture filing is in the land records as a priority senior to the mortgage loan it must be subordinated. Ucc 1 filings can be problematic when selling your home.

The ucc 1 fixture filing is a public declaration of our interest in the solar energy system. Featuring guest contributor greg field solar home realtor as a homeowner you authorized a uniform commercial code 1 ucc 1 filing when you received a loan to add solar panels to your home. Fixtures are defined in section 9 102 of the ucc as goods that have become so related to particular real property that an interest in them arises. Ucc 1 fixture filing for home solar panel systems.