What You Need to Know about Solar Leases

By Real Estate May 9, 2016

bigstock_Solar_Panel_Installation_9354038With the rising cost of electricity, it’s no wonder we are seeing more creative ways to acquire energy through solar power. According to the Solar Energy Industries Association, 2015 was the biggest year yet in solar-use history, and the industry is set to more than double the amount of installed capacity in the United States in 2016. As expected, California leads the way, accounting for nearly 50% of the annual residential installations in the U.S.

With competitive solar prices and existing tax incentives, chances are you will be dealing with a real estate sales transaction involving a solar lease, sooner rather than later.

One of the most affordable ways to purchase solar power is through an independent solar energy producer who leases the solar energy equipment to a homeowner. In most cases, when homeowners enter into an agreement with an independent solar energy producer, they sign a contract or lease and/or a UCC financing statement, and the documents are made of record through the county recorder’s office. The term of the lease may vary, but many are at least 10 to 20 years. These documents will be reported on the Preliminary Title Report ordered through escrow when the home is being sold

When a homeowner sells a home that is subject to a lease or contract for solar energy, the lease or contract will need to be bought out or assigned to the buyer who purchases the property before the close of escrow. It’s important to note that the solar energy producer must approve the new owner prior to closing escrow, and that their requirements may be similar to or even stricter than a lender’s requirements.

When a solar lease or contract is discovered through our escrow, we will notify you immediately so that you can contact your clients and make arrangements for the assignment.

To avoid delays in closing, it will be helpful to know in advance whether there is a lease for solar power and what the lease transfer and buyout options are, so that you and the homeowner will be ready to address the issue with prospective buyers.

By Kari Bodine

 

About the Author
Greg DiGiorgio, Arlington MA Realtor

Greg DiGiorgio is a highly reviewed Arlington MA Realtor who is a dedicated, passionate, and market-savvy professional who puts his clients’ satisfaction before all else. His attention to detail, superior people skills, broad knowledge of the real estate industry as a whole, and his pure determination to indulge his clients with first class service sets him apart. In addition to Greg being an Accredited Buyers Representative-ABR, he understands the power of creative, well-organized and highly effective marketing and offers customized marketing plans that maximize property exposure to the most qualified buyers. He has appeared several times on Fox 25 News where he was interviewed on current market trends and conditions. A real estate transaction is really about managing people, their desires and their finances. It is an intricate and consequential negotiation.


Greg understands that it is important to secure not only the most able buyer, but also to the one that is most likely to close the deal. When so much is at stake, Greg is the one you want to represent you. His fair yet aggressive negotiating style and protectiveness of his clients’ best interests and ultimately, their assets, has gained his respect with colleagues and clients alike.


Greg also knows that every transaction represents the most important purchase or sale a person can make, and he takes every precaution to ensure that communication is impeccable with all parties involved from beginning to end. Whether it’s patiently guiding first time buyers through this exciting process or following through with clients’ needs long after the transaction is over, Greg’s warm, caring yet efficient business style will turn you into a client for life.


Driven


Greg grew up in the Greater Boston area and has a deep appreciation for the North East way of life. He attended The University of Massachusetts at Dartmouth where he graduated with a Bachelor of Science degree in Marketing, with a concentration in Marketing Research. Greg’s professional background is rooted in the technology sales & marketing. As a result, he learned to adapt to many different people and situations quickly and competitively. The insight that he has gained from many years of involvement in bringing all components of a transaction together smoothly has granted him a unique perspective and approach to the real estate industry. His enthusiasm and tenacity has allowed him to emerge as one of Greater Boston’s finest Realtors, and one of the highest reviewed amongst Arlington MA Realtors!


My Goal


My goal is to provide the best experience possible to my clients while helping them achieve their real estate goals. My streamline systems and use of technology ensure a smooth ride along the way. Whether it’s a first-time buyer, a seller, or investor, I strive to gain lifelong clients and friends by providing them with a fun, relaxing, but yet educational experience throughout the entire process.


Objectives for my Buyer Clients


Counsel session to determine wants & needsSchedule times to view properties

Run comparable analysis report for subject property

Help negotiate terms of the offer

Provided options for home inspectors

Help negotiate & finalize terms of Purchase & Sale Agreement

Assist in finalizing finances with Mortgage Broker

Handle any other paperwork and/or tasks including meeting mortgage commitment deadlines to making sure the transaction closes on time.

I keep an open door policy with all my clients even after the sale should they have any questions, or need help with any of their real estate needs. The closing of a real estate transaction is not the end, but just the beginning of a relationship.


Objectives for my Seller Clients


Listen carefully to make sure your goals and objectives are clearly understood

Explain the home selling process thoroughly

Discuss agency relationship

Price your home accurately

Stage your home for sale

Plan & implement a proven & innovative marketing plan

Work diligently to sell your home quickly and efficiently

Follow up with open house leads & showing brokers to obtain feedback

Work hard to ensure that each step of the transaction is running smoothly

To ensure that all smoke & carbon monoxide detectors are installed and working correctly, and to obtain certificate from town/city

To obtain final payoff for city/town water bill

“Most Importantly to communicate with you consistently and efficiently throughout the entire home selling process”

Certifications and Recognitions


Winner of Leading Edge Real Estate’s Outstanding Creative Marketing Award. Certified Residential Specialist (CRS)

Accredited Buyers Representative (ABR)

Member of the Institute of Luxury Home Marketing (ILHM)

Licensed Massachusetts Real Estate Broker

Member of Greater Boston Real Estate Board (GBREB)

Member of National Association of REALTORS (NAR)

Zoning & Building Codes Certificate

Residential New Construction Certificate

Title V Certificate