Selling a House With a Solar Lien: What Sellers Need to Know

As of November 10, 2026. This guide is general information, not legal advice. Real estate, UCC and consumer finance rules vary by state. For your specific sale, talk to your title company and a licensed real estate attorney.

A lot of sellers first hear about a solar "lien" days before closing, when the title company flags a UCC filing. This guide explains what that filing usually is, how to find it, what buyers and lenders care about, and the usual ways to clear it.

The short answer

• What people call a "solar lien" is often a UCC-1 financing statement, sometimes filed as a fixture filing in the county land records. It puts the public on notice that a lender or solar company claims an interest in the equipment ^[1][3].
• Loan: you usually pay off the balance at or before closing, or the buyer assumes the loan if the lender allows it ^[1].
• Lease or PPA: the solar company owns the equipment. You usually transfer the contract to a buyer who qualifies, or you buy it out ^[8].
• Talk to your solar company and title company early. Transfers and payoffs take time ^[8].

UCC-1 fixture filings vs. "real" liens

What a UCC-1 is. Under Article 9 of the Uniform Commercial Code, a creditor can take a security interest in goods that are or become fixtures ^[6]. To make it public, the creditor files a financing statement. If it's filed as a fixture filing, it goes in the office where mortgages are recorded, which is usually the county recorder or clerk. Other UCC filings go to a central state office set by each state's UCC ^[3].

Why it shows up on solar homes. The CFPB reports that some solar loans are secured by "a lien on the panels themselves," while others are unsecured ^[1]. Lessors and PPA providers also file "precautionary" UCC statements to put others on notice that they own the equipment ^[2].

Why it can feel like a lien on your house. The CFPB notes that a UCC lien on panels is "technically not on the property, but it can muddy the title because some jurisdictions view the lien as applying to the whole property. If this occurs, the lien must either be released or made subordinate to the mortgage or refinance" ^[1].

How mortgage lenders treat it (Fannie Mae example): - Leased or PPA panels. A precautionary UCC filing that describes only the solar equipment, not the home or land, is "acceptable (and a minor impediment to title)" if the loan is underwritten under Fannie Mae's rules. The panels can't add to the appraised value ^[2]. - Financed panels with a UCC fixture filing in the land records. The lender must review the documents and include the debt in the buyer's ratios. If the fixture filing has priority over the new mortgage, "it must be subordinated" ^[2]. - Owned panels (cash, or a loan repaid in full). Fannie Mae's standard requirements apply ^[2].

A mortgage lien or a court judgment works differently from a UCC filing. If your title report shows a recorded mortgage, deed of trust or judgment tied to solar, ask your title company or attorney what it is. PACE financing is a special case. Fannie Mae won't buy a mortgage on a property with solar financed by a PACE loan unless the PACE loan is paid in full at or before closing ^[2].

How to find the filing

1. Read your solar contract. It should say whether the company can file a UCC statement or a notice of the contract.
2. Ask your title company for the title commitment. It will list any recorded solar documents. Title underwriters write exceptions for recorded solar leases, solar contracts and UCC-1 filings that say the solar company keeps ownership ^[7].
3. Search county land records. Fixture filings are recorded where mortgages are recorded ^[3]. Search your county recorder's index by owner name and property address, or ask your title company to do it.
4. Search the state UCC index. Non-fixture UCC statements are filed in the central office named in your state's UCC ^[3]. Fannie Mae notes these must be filed "in the office identified in the relevant state's adopted version of the UCC" ^[2].
5. Note the dates. A financing statement is generally effective for five years after filing unless a continuation is filed ^[5].

If you have a solar loan

The CFPB says sellers with an unpaid solar loan typically have two options that leave the panels with the house. The buyer legally assumes the loan, if the lender allows it, or the seller pays off the balance before the sale ^[1]. Lenders differ. GoodLeap says a buyer must apply and qualify, and that it can decline the assumption ^[16]. See our GoodLeap assumption guide.

• Get a written payoff letter from your servicer with a good-through date, and give it to the closing agent.
• Get the UCC filing terminated after payoff. Under model UCC § 9-513, for consumer goods, the secured party must file a termination statement within one month after nothing is owed, or within 20 days of your authenticated demand if that comes sooner ^[4]. Your state's version controls, so ask your closing agent to collect the termination or release.
• Check who services your loan now. Servicers change, especially after bankruptcies. Mosaic's loan servicing moved to Solar Servicing LLC (a Forbright Bank subsidiary) in September 2025, and that company says there are "no changes to payment terms or schedules" ^[17]. Solar Servicing also says it doesn't offer loan transfers and suggests a payoff for home sales ^[15]. See our Solar Servicing guide. For old SunPower systems, the current SunPower Inc. says cash and loan customers should contact their lender ^[18]. See our SunPower guide.
• Disputes. If the system never worked, your loan may contain the FTC Holder Rule notice, which lets you raise claims against the seller with whoever holds the loan, up to the amount you've paid ^[11]. Get legal advice before using that in a closing.

If you have a solar lease or PPA

The equipment belongs to the solar company or its investors, so the contract either moves to the buyer or ends.

• Transfer to the buyer. Usually the buyer has to apply and qualify with the solar company and sign a transfer ^[8]. SunStrong, which services many former SunPower and Sunnova contracts, lists "Home-sale transfers" among its covered services ^[10]. See our SunStrong guide. Its inquiry form asks for the buyer's name and contact details and the title company contact ^[9].
• Buy out the lease or prepay the contract. Ask for a written buyout figure. The Florida Realtors Q&A notes the buyout can be paid from sale proceeds ^[8]. Whether you can buy out early, and at what price, depends on your contract.
• Precautionary UCC release or subordination. Many lenders can work with a precautionary filing ^[2]. Some will still want it released or subordinated, so ask the buyer's lender early.

What buyers, lenders and title companies worry about

• Ownership. Who owns the panels, and can they be repossessed? Fannie Mae requires lenders to determine this ^[2].
• Debt-to-income. Lease payments generally count against the buyer. PPA payments based only on energy produced may be excluded ^[2].
• Lien priority. A fixture filing ahead of the new mortgage must be subordinated for a Fannie Mae loan ^[2].
• Roof and removal terms. For leased or PPA panels, the agreement must say the equipment owner is responsible for damage from installation, malfunction or removal ^[2].
• Title exceptions. Title policies may carry an exception for the solar company's ownership and access rights ^[7].

Your options at a glance

State notes for SGI target states

These notes cover state rules and actions from official or published sources. They aren't a complete survey of state law.

• Texas. Senate Bill 1036 created a Residential Solar Retailers program at TDLR. Contracts signed on or after September 1, 2025 must include required provisions and a right to cancel. If the retailer referred or is affiliated with the lender, the agreement must require the lender to cancel the loan when the contract is canceled. Retailers and salespeople must be registered with TDLR starting September 1, 2026 ^[12]. Separately, on April 3, 2026, the Texas Attorney General announced Civil Investigative Demands to several solar sellers, including Sunrun and Freedom Forever ^[19].
• California. Solar energy system companies must give a CSLB "solar energy system disclosure document" on the front page of every solar energy contract, covering total cost, payments and cancellation rights ^[13]. A title underwriter bulletin also says statutory notices of solar contracts, "such as those mandated in California," can show up in title searches ^[7].
• Florida. In an October 29, 2026 Florida Realtors Q&A column by Gary M. Singer (reprinted from the South Florida Sun Sentinel), the author explains how a UCC-1 on leased panels can hold up a buyer's loan, and the transfer and buyout options ^[8].
• Connecticut. In October 2026, the Attorney General announced a settlement requiring Sunrun to investigate fraud claims tied to certain sales agents and to offer relief such as cash, credits, contract cancellation or system removal where fraud is substantiated. Claims go to CTSupport@sunrun.com ^[14].
• North Carolina and Kentucky. In November 2022, the NC and KY attorneys general led nine AGs in asking five solar lenders to suspend payments and interest for Pink Energy customers whose systems didn't work ^[20].

How Unstuck Solar can help

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FAQ

Is a UCC-1 filing the same as a lien on my house? Not exactly. It's a notice of a security or ownership interest in equipment. The CFPB notes that some jurisdictions treat it as applying to the whole property, which is why it can hold up a closing ^[1].

Do solar companies put a lien on your house? Some secured solar loans include a lien on the panels, some are unsecured ^[1], and lessors often file precautionary UCC statements ^[2]. Read your contract and check county records.

Can I sell my house if I still owe on solar panels? Generally yes. The usual paths are paying off the loan before or at closing, or a buyer assumption if the lender allows it ^[1].

How long does a solar lease transfer take? It varies. A Florida Realtors Q&A column (Oct. 29, 2026) warns that transfers and payoffs "take time" and that buyers may need credit approval ^[8]. Start as soon as you list.

How do I get a solar UCC removed after payoff? Ask the secured party for a termination statement. The model UCC sets deadlines for consumer goods ^[4]. Your closing agent can help confirm it's recorded.

What if my solar company went bankrupt? Find the current servicer first. For example, SunPower Inc. sends legacy SunPower lease and PPA customers to their financier or SunStrong ^[18], and Mosaic loans are now serviced by Solar Servicing ^[17]. See our guides on Sunnova, SunStrong, SunPower and Solar Servicing.

Can I just remove the panels before selling? For leased or PPA panels, you don't own the equipment, so removal depends on your contract. Fannie Mae requires the agreement to make the equipment owner responsible for damage from removal ^[2]. Ask the solar company in writing what removal would cost and who pays.

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Not legal advice. SGI is not a law firm. Information comes from public sources as of November 10, 2026. Consult your title company and a licensed real estate attorney before you close.

Sources

1. CFPB, "Solar Financing Issue Spotlight," August 2024: https://files.consumerfinance.gov/f/documents/cfpb_solar-financing-issue-spotlight_2024-08.pdf
2. Fannie Mae Selling Guide B2-3-04, "Special Property Eligibility Considerations" (Properties with Solar Panels): https://selling-guide.fanniemae.com/sel/b2-3-04/special-property-eligibility-considerations
3. UCC § 9-501 (filing office), Cornell LII: https://www.law.cornell.edu/ucc/9/9-501
4. UCC § 9-513 (termination statement), Cornell LII: https://www.law.cornell.edu/ucc/9/9-513
5. UCC § 9-515 (duration), Cornell LII: https://www.law.cornell.edu/ucc/9/9-515
6. UCC § 9-334 (security interests in fixtures), Cornell LII: https://www.law.cornell.edu/ucc/9/9-334
7. WFG National Title Insurance Co., Underwriting Bulletin NB 2016-11, "Solar Contracts, Notices & UCC-1 Filings" (Oct. 24, 2016): https://wfgunderwriting.com/wp-content/uploads/filebase/national/bulletins/NB%202016-11%20Solar%20Contracts,%20Noticies%20and%20UCC-1%20Filings.pdf
8. Florida Realtors, "Real Estate Q&A: Can Leased Solar Panels Derail a Home Sale?" (Oct. 29, 2026): https://www.floridarealtors.org/news-media/news-articles/2026/10/real-estate-qa-can-leased-solar-panels-derail-home-sale
9. SunStrong Management, Customer Service Inquiry form: https://sunstrongmanagement.com/customer-service-inquiry/
10. SunStrong Management, Homeowners page ("Home-sale transfers," "Sell My Home"): https://sunstrongmanagement.com/homeowners/
11. FTC Holder Rule, 16 C.F.R. § 433.2, Cornell LII: https://www.law.cornell.edu/cfr/text/16/433.2
12. Texas Department of Licensing and Regulation, "Residential Solar Retailers: What's in Effect When": https://www.tdlr.texas.gov/residential-solar-retailers/effect.htm
13. California Contractors State License Board, "Solar Requirements": https://cslb.ca.gov/Consumers/Solar_Requirements.aspx
14. Connecticut Attorney General, "Attorney General Tong Announces Settlements with SunRun Solar and Others…" (Oct. 23, 2026): https://portal.ct.gov/ag/press-releases/2026-press-releases/attorney-general-tong-announces-settlements-with-sunrun-solar-and-others-to-require-consumer-relief
15. Solar Servicing LLC, Homeowner FAQs: https://solarservicingllc.com/homeowner-faqs/
16. GoodLeap, FAQ (Home Sale / Refinance): https://www.goodleap.com/faq
17. Solar Servicing LLC, Corporate info & borrower FAQs: https://solarservicingllc.com/corp-info-faqs/ ; Forbright Bank newsroom (Sept. 22, 2025): https://www.forbrightbank.com/stories/newsroom/solar-mosaics-loan-servicing-operations-transition-to-solar-servicing/
18. SunPower Inc., "SunPower Corporation Bankruptcy and What You Need to Know": https://us.sunpower.com/acquisition-announcement
19. Texas Attorney General, "Attorney General Ken Paxton Launches Major Initiative to Combat Widespread Fraud by Companies Selling Solar Panel Systems" (Apr. 3, 2026): https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-launches-major-initiative-combat-widespread-fraud-companies-selling
20. North Carolina DOJ, "Attorney General Josh Stein Calls On Five Solar Lending Companies to Suspend Loan Payments and Interest for Pink Energy Customers" (Nov. 22, 2022): https://dojdelivers.ncdoj.gov/attorney-general-josh-stein-calls-on-five-solar-lending-companies-to-suspend-loan-payments-and-interest-for-pink-energy-customers/