Property Ownership

A Texas owner installs solar panels on their home with a power purchase agreement (PPA). For real estate purposes, panels under a PPA are generally:

AReal property that conveys with the house automatically
BPersonal property or a leasehold of the solar company that may need to be addressed in the sale✓ Correct
CAutomatically owned by the new buyer upon closing
DRequired to be purchased by the seller before listing

Explanation

Under a PPA, the solar company retains ownership of the panels. The homeowner essentially leases the use of the panels or pays for power generated. When the home is sold, the PPA must be addressed — either transferred to the buyer or bought out by the seller.

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