From 24/7 Wall St. · Jake FitzGerald · · 1m 10s
Inheriting Solar Lease Complicates Home Sale
Heir inherits mother's Phoenix house with 17-year solar lease; buyer's lender demands $31,000 payoff to clear contract.
In brief
Heir inherits mother's Phoenix house with 17-year solar lease; buyer's lender demands $31,000 payoff to clear contract. Heir inherits mother's Phoenix house with 17-year solar lease; buyer's lender requires $31,000 payoff to clear contract before closing. Originally reported by 24/7 Wall St..
Inheriting Solar Lease Complicates Home Sale
He inherits his mother's Phoenix house with a solar lease that has 17 years left to run.
Buyer's Lender Demands Payoff
The buyer's lender will want the solar lease cleared before closing, requiring a $31,000 payoff.
Solar Lease Continues After Death
A solar lease typically continues after the homeowner's death, transferring to the heir with the property deed.
UCC-1 Filing Creates Cloud
Rented panels usually come with a UCC-1 filing, a public notice that must be cleared by title companies.
Stepped-Up Basis Lowers Tax Bill
He gets a stepped-up tax basis at his mother's death, reducing capital gains tax if he sells soon.
Three Moves Before Listing
He should get the lease, payoff quote, and transfer requirements from the solar company before listing the house.
Risk of Collapsed Deal
If the solar lease isn't cleared, the deal could collapse, costing months to fix.
In short
Heir inherits mother's Phoenix house with 17-year solar lease; buyer's lender requires $31,000 payoff to clear contract before closing.
