Haines City, FL asked in Real Estate Law for Florida

Q: Am I to assume a debt of $54k for solar panels that were not disclosed when I put an offer on the property?

I am in the mist of buying a house Cash in Polk County, FL. The house is $322k. I am to close on the property Sep. 2nd. However, 4 days ago, I was made aware that the house has solar panels that are leased to own. The balance remaining is $54k to be paid at $143.66 a month. The realtors on both part have been trying to push me to sign a "take over agreement" with the solar company. I signed an addendum that stated I will not be taking on any of the prior owner's debt in the purchase of this home and I do not want to take on this debt. I have put $3000 as earnest and have paid for inspection. My realtor tells me "we are too late in the process and that the seller will not be paying off the panels upon sell. What can be done in my situation? Will I lose my earnest money because of their lack of disclosure on such an important matter?

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2 Lawyer Answers

A: It appears that the prospect of this solar company having the authority to place a lien on your house was a material fact that the seller had a legal duty to inform you about. If a seller fails to disclose a material fact during contract negotiations, then the buyer can sue for recision. This is the general rule and there could be many exceptions. Accordingly, consult with real estate counsel for more specific advice.

A: The solar panels constitute a lien on the property that should have been disclosed up front or showed up on the title/lien search. Your realtor should have put this provison in Section 20 of your contract: "seller shall close out any open, expired ,cancelled or revoked permits and satisfy any open liens and/or cited code violations prior to closing." The lien for panels is the Seller's obligation and you should not be forced to take over payments for the solar panels, since you never signed a contract with the solar company. The balance owed for the panels should be paid off from the Seller's proceeds and should have been initially factored into the purchase price by the Seller. Having failed to do that, they cannot force you to take over the payments which were not initially disclosed when the house was advertised.

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