Michigan homeowner discovers the previous owner leased the solar panels, still owes half the balance, and is now asking him to take over the payments

This situation is basically the homeownership version of opening the fridge in a new apartment and finding someone else's leftovers plus a bill. The panels are bolted to the house. The debt is bolted to the previous owner. Now there is a very enthusiastic chorus trying to convince the new owner that both should come as a set. So solar panels are apparently the timeshares of the roof world

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  • Woman sitting on a couch in a cozy living room, looking down at her smartphone with a thoughtful expression.
    via Branislav Nenin

    Image is representative only and does not depict the actual subjects of the story.

  • Previous owner of my current home asking if I would take over solar panel lease

    Location: Michigan Hi all, I am 22 and was fortunate enough to be put in a position to purchase a nice house that had some solar panels on it.
    via AllOutLoud
  • At the time (before closing) I had fully thought they were paid in full, the agent for seller had told me stuff along the lines that "She got scammed, the solar company went bankrupt so they never fully functional (they are installed on the roof of the house currently) and that she pays them a monthly amount still" <- (This is the part where I assumed she somehow got scammed?) However, I recently got a text from the agent that cleared stuff up.
    via AllOutLoud
  • The panels were actually leased, and not paid full as I had thought. They are about 50% paid off and if "I am interested" they will let me sign the lease to take over the rest of the balance to be paid monthly with 2% interest.
    via AllOutLoud
  • I had also not known this at the time, but I guess solar panels are a big deal with houses regarding liens and what-not as I searched some other posts/threads before coming here.
    via AllOutLoud
  • I have an email from the seller agent explicitly saying they are not a lien on the house, and I also have a couple email threads showing my understanding of the solar panels being paid full while he didn't care to correct me until now, I suppose.
    via AllOutLoud

  • I would personally love to see the sales pitch on Shark Tank. First, it is a sad scam story. Company went under. Panels never worked right. Poor seller still paying. Lots of sighing. Zero mention of the word lease. Then months later comes the follow-up: Hey, great news, you can totally volunteer to finish paying for this broken rooftop decoration at two percent interest. All the charm of a car loan, none of the mobility.

  • Relaxed woman sitting on a couch in a warm living room, smiling slightly while using her smartphone.
    via Branislav Nenin

    Image is representative only and does not depict the actual subjects of the story.

  • My Dad has a realtors license (not his job to be agent however, he is mostly developmental) so he was the agent for me and I kind of regret it as I don't think this would have happened if I had an agent who knew what he was doing.
    via AllOutLoud
  • Nothing has transpired yet, I just want to know if I will have to take over this lease or have the solar panels removed.
    via AllOutLoud

  • On paper, it’s simple. The buyer purchased the house not the contract. There is written proof that the panels were believed to be paid off and that there was no lien attached. The listing agent let that misunderstanding sit there like it was none of his business until suddenly he needed a favor. Now he wants the new owner to fix the financial hangover from a deal they were never told about.

  • If it was up to me I would tell her to sk it up and pay because as far as I currently understand I am under no liability for the panels, and they are mine this should have been disclosed beforehand I feel.
    via AllOutLoud

  • What makes it extra grim is the age gap. A 22-year-old finally lands a house, and instead of congratulations, everyone seems very interested in turning them into the designated adult who cleans up paperwork choices made years ago. The previous owner gets to float the idea of just taking over the lease like someone asking a roommate to adopt their unused gym membership.

  • I am not literate with anything about law at all so any help is appreciated :) Edit: Thanks everyone for the valuable input!
    via AllOutLoud

  • The thing about solar is that panels on the roof and panels in the contract are two different universes. One is hardware. The other is obligation. If the paperwork was not signed by the current owner, there is no magical ethics rule that says surprise you now owe thousands because the last resident did not read their own financing agreement.

  • I feel better now, worst case I get an attorney and fight over it
    via AllOutLoud

  • Love the planet. Love renewable energy. Still perfectly allowed to look at a mystery lease and say no thanks, those rays can stay purely decorative until the original signer and the very confident agent figure out how to pay for their own sunlight.

  • Disastrous_Garlic_36 You really need to get a consultation with a real estate attorney. Solar companies structure their contracts specifically to deal with situations like this (for their benefit, not yours). In some cases they actually have to approve the sale of a house. They can (and will) cause all kinds of problems if they don't get their money. I hope you bought title insurance when you bought the house.
    via AllOutLoud
  • AllOutLoud Original Poster's Reply Yep, I do! Thanks for the heads up
    via AllOutLoud
  • SuccessfulOwl Or what? Phrasing it as you taking over paying it off 'if you are interested' sounds to me like they know they have no leg to stand on here....
    via AllOutLoud
  • AllOutLoud Original Poster's Reply I was thinking the same thing
    via AllOutLoud
  • NephtisSeibzehn NAL. Contact a real estate attorney and get a hold of the lease documentation. When I was house hunting any homes that had leased panels would have had the lease passed onto me or the sale could not go through. Make sure you didn't sign the lease. This is what the attorney is for cause you may be in for a fight. Your dad misrepresented you, in my opinion.
    via AllOutLoud
  • precipicesedge If the panels are physically attached to the roof they likely qualify as fixtures. If no lien was recorded on the solar panels at the courthouse then you purchase them as a Bonafide purchaser for Value without notice. You don't have to let them have the solar panels or pay the rest of the debt on the solar panels. You also don't have to let them come get the solar panels As it would cause damage to your property in any event. The seller of the property needs to pay off the solar p
    via AllOutLoud
  • hikingthrulife NAL. We were purchasing a home last year with solar panels on it. The listing mentioned solar panels, but nothing about the lease still remaining on them. When we were going through closing, the seller's agent asked if we wanted to take over the lease. Our agent replied that from a contractual standpoint the listing did not disclose that they had a lease remaining which insinuated to us as the buyers that they were paid for when we made our offer. The seller was required to pay th
    via AllOutLoud
  • Jaded_Specific_7483 NAL. I've been through something similar. If you had a title search done and the property doesn't have a lien showing for the solar panels then the debt is owed directly by the previous owner and not tied to the property. They can pound sand. If the panels aren't working then there's a k I switch on the inverter and it will have to be replaced by an electrician with one that doesn't have that.
    via AllOutLoud
  • cynna8 When I purchased a home there was a rent to own storage shed on the property. It was included in the sale, but never disclosed that it was being rented. After moving in the rental company wanted to retrieve the shed. I told them it was mine as part of the house sale. They then went after the previous owners who had to cough up the rest of the purchase price.
    via AllOutLoud
  • Electrical-Wall8755 NAL. My brother bought a house similarly and when they offered him that he said no, remove them. The seller left them on and paid off the lease because it was cheaper than having them removed. That was Colorado about 8 years ago.
    via AllOutLoud
  • empire_of_the_moon I'm going to add, that if there was no lien recorded and as a part of closing you didn't sign to assume the solar lease, your father didn't fail you as you are not obligated to assume nor service the debt. Given the devaluation of panels, it's unlikely the cost of removing them and repairing your roof makes sense for the solar company. Give dad a break, talk to a lawyer and don't outthink this problem. This doesn't seem like your problem, nor your father's problem to solve. Th
    via AllOutLoud
  • Efficient_Job7920 NAL but formerly in solar. Back when I was in solar there were 2 general options for panels. 1. Buy the panels yourself either in cash or thru financing and the savings from a lowered electric bills would pay you back. 2. (And the most common) You got the panels for free and either LEASED (set monthly payment) or only paid the solar company for whatever electricity they produced at a rate lower than the utility. I worked for 2 major companies and neither of them had leases with
    via AllOutLoud

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