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News & Press: CLTA News

CLTA Files Solar Endorsement

Tuesday, December 17, 2019  
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The CLTA Forms and Practices Committee has recommended a new solar endorsement to satisfy the lender that the solar lease shown as an exception will not result in the invalidity or unenforceability of their lender lien. However, the endorsement specifically states that it does not insure that the solar system is part of the "land" or encumbered by the lender's security interest.

Solar companies are recording a document entitled Subordination and Nondisturbance Agreement that attempts to make it clear that their solar installation is personal property and survives a foreclosure and remains owned by the solar leasing company. UUC1 filings for solar leases are also being recorded.

As the leasing of solar equipment has become more common, lenders have become concerned as to how the financing impacts their priority and security. When title companies show a recorded solar lease or contract as an exception in a preliminary report for a loan policy a lender may seek an endorsement regarding their security interest.

California Land Title Association

1215 K Street #1816 Sacramento, CA 95814-3905
Email:  |  Phone: 916-444-2647  |   Fax: 916-444-2851