How to Sell a DFW Home with an Active Solar Panel Lease (What to Disclose)

Direct Answer

Selling a DFW home with a solar lease requires you to either transfer the lease agreement to the buyer or buy out the remaining contract before closing. In Texas, you must disclose the lease on the Seller’s Disclosure Notice and use the Addendum Regarding Fixture Leases (TREC Form 52-1) to formalize the agreement. Proactive coordination with your solar company is essential, as the buyer must typically pass a credit check (often requiring a score of 680+) to assume the lease. Addressing these requirements early ensures the solar panels remain a selling point rather than a hurdle to a clear title.

Book your Home Goals consultation to map your solar disclosure strategy: https://stevenjthomas.com/home-goals

1. What to Disclose: The Texas Legal Requirements

Failure to disclose a solar lease can lead to legal complications or a failed closing.

• Seller's Disclosure Notice: You are legally required to state if the panels are leased.

• TREC Addendum Regarding Fixture Leases: As of 2021, this form is required for any fixture lease, including solar. It details whether the buyer will assume the lease or if the seller will remove the system.

• Recorded Fixture Filings (UCC-1): Most solar companies file a UCC-1 statement with the county, which acts as a "solar lien" on the equipment. This will appear on a Preliminary Title Report and must be addressed for the title to be cleared.

2. Managing the Lease Transfer Process

If the buyer agrees to assume the lease, a specific process must be followed:

• Early Notification: Notify your solar company as soon as you list the home to connect with a transfer specialist.

• Buyer Credit Approval: The solar provider will run a credit check on the buyer. Approval typically takes 2–3 business days, though the entire transfer process can add weeks to the closing timeline.

• Escalator Clauses: Disclose if your monthly payments increase annually. Buyers need to know if their $150 payment will grow by 1–3% each year.

3. The Buyout Alternative

If a buyer "balks" at assuming a 20-year lease, you may need to buy it out.

• The Cost: Buyouts can range from $6,000 to over $25,000, depending on the system's age and contract terms.

• The Benefit: Owned panels (post-buyout) generally increase home value, whereas leased panels do not.

• Negotiation Tip: If the buyer is hesitant, you can offer a credit at closing to offset the remaining lease costs.

4. Neighborhood Spotlights: DFW Solar Realities

• DeSoto & Midlothian: As established solar markets, local appraisers and title companies here are more familiar with lease transfers.

• New Subdivisions: In 2026, many DFW builders are partnering with solar companies. If you are selling a relatively new home, check if your lease is a "Lease-to-Own" model, which may have easier buyout options after Year 6.

Conclusion

Selling a home with a solar lease in North Texas isn't about avoiding the topic—it's about mastering the details. By using the correct TREC forms, providing a copy of the lease agreement upfront, and verifying the buyer's credit qualifications early, you can navigate the sale with confidence. Whether you choose to transfer the lease or buy it out, clear communication ensures that your move stays on track and your title stays clear.

Start with your Home Seller Score to see how your solar lease impacts your equity: https://stevenjthomas.com/home-seller-score

Key Takeaways

• Use Form 52-1: The Addendum Regarding Fixture Leases is your best defense against late-stage contract disputes.

• Check the Title: Order an O&E (Ownership & Encumbrance) report early to confirm if a UCC-1 lien is recorded.

• Qualify the Buyer: Ensure the buyer's lender is aware of the lease, as the payment may impact their debt-to-income (DTI) ratio.

• Documentation is Key: Have your lease agreement, performance reports, and 12 months of utility bills ready for prospective buyers.

• Time the Transfer: Don't wait for a signed contract to start talking to your solar provider; initiate the transfer packet immediately upon listing.

  Custom HTML/CSS/JAVASCRIPT