What if I need to sell my home while my solar panel legal case is pending?

A common question that comes up during solar panel litigation is: what should you do if you need to sell your home while the case is still pending? Unfortunately, this situation does occur, especially since most cases take about a year or longer to resolve.

If you’re in this situation, start by confirming that your attorney has already sent a demand letter to the lender. This letter should clearly state that you’re making all future payments under protest—including the loan payoff at the time of sale.

This language could help preserve your right to later sue for a refund of those payments. Paying off your solar loan to move in the middle of a case is inherently risky. No attorney can guarantee results.

Even if your demand letter has already been delivered, paying the loan in full can reduce your chances of reaching a settlement. This is because lenders are generally unwilling to return payments once they have received them. Although your legal claims would still remain active and the firm would continue to request reimbursement of those funds during arbitration, securing a refund becomes significantly harder.

Additionally, if you move and pay off the loan before a third party performs a detailed site analysis of the solar system, you will likely lose some, if not all, of your legal claims due to the loss of your case evidence

Handling the Loan and UCC Lien

Because solar panel loans are often secured with a UCC-1 lien, you will be required to pay off the loan before selling your home.

The lien acts much like a mortgage lien. It must be satisfied before the title can transfer to a new buyer.

Even though this can feel frustrating, it does not hurt your legal case.

Pay off the loan, and your attorney will continue to pursue the same claims in arbitration as before. The only difference being that now the claim will center on getting your money back, rather than canceling the loan itself. However, we cannot guarantee results and paying off the loan has consequences on potential settlement outcomes.

Shifting the Focus to Financial Recovery

Once the loan is paid off, your case becomes about reimbursement. Instead of requesting cancellation of a loan, your attorney will now demand a refund of the payments you made. This includes the lump sum used to pay off the lien.

The core arguments stay the same. Most claims focus on misrepresentation, breach of contract, or violations of consumer protection laws. However, the remedy shifts—you now seek financial compensation instead of canceling the loan.

Even if the installer has gone out of business, you can still hold the lender accountable. Federal consumer laws, including the FTC Holder Rule, allow you to pursue claims directly against the lender.

Have questions about selling your home during a solar lawsuit? Contact Prevost Law Firm today for skilled legal support.