Is the home seller required to pay off a loan on their solar panels?

According to the North Carolina Association of REALTORS, assuming that the Standard Offer to Purchase Form 2-T was used, the seller would be required to pay off the balance owed to the solar panel company, unless the buyer was willing to assume the obligation and an appropriate addendum to the contract is drafted by an attorney.

Paragraph 3 of Form 2-T, states that the seller agrees to convey all fixtures as part of the purchase price, free and clear of all liens, and solar panels would be considered fixtures.

The bottom line is that if a home includes solar panels that aren’t owned free and clear by the seller it’s important to make sure that there is a clear understanding between the parties regarding how the panels will be handled as a part of the transaction.

That understanding should be clearly reflected in the written contract between them. In addition, it would be wise, prior to going under contract, to be sure that the terms of the transaction are acceptable to the solar panel company and the buyer’s lender, where applicable.

Keep in mind - terms for the Standard Offer To Purchase Form 2-T change over time, so the answer in this example could change if the terms of the standard contract are updated. Always check with a licensed real estate agent for current guidance.