Solar Panels and Title Insurance

In this video Deirdre P Brown discusses how having a solar panel on a property could effect title insurance coverage.


Hello this is Deirdre Brown your settlement agent for Maryland, DC and Virginia. Today we're going to talk about solar panels.

These are great inventions and they help with electricity and energy savings in homes. However they can affect title to a property.   Because some solar panels actually are not owned by the property owner. They are leased and those leases have UCC financing agreements that are recorded in the land records and that is a lien against title.

If you're a listing agent no matter which jurisdiction you are in you need to talk to the seller about whether or not their solar panels are leased.  I will tell you that a lot of times sellers think their solar panels are owned but they're not.  So you might want to take a look at the documentation. If it says lease agreement, it's leased. In that case what you want to do is one you need to disclose to the buyer. You do this by putting it in the MLS that there is a solar panels lease and that the lease will need to be most likely assigned to the new buyer.  You should also disclose in the seller disclosures. Once you have a ratified contract you will contact the solar panel company. The solar panel company will assist you in assigning the new lease to the buyer and then they're going to send us, the title company, a release of lien.  This is  the only way we can go to closing because all liens in the seller's name needs to be either paid or  released in order for us to move forward with settlement.

If you have any title related questions feel free to reach out to me at