“Wait… what’s this lien on my home?”
It happens more often than you might think.
You’re in the home stretch of refinancing to lock in a better interest rate … or maybe you’ve listed your house and are thrilled to have an offer on the table. Then the call comes from your lender or title company:
“We found a UCC lien filed against your property by [Solar Company Name]. We can’t move forward until this is resolved.”
Your heart sinks. You don’t remember agreeing to any lien. You remember talking to a solar salesperson, getting excited about lower energy bills, but there was never a clear discussion about legal filings against your property.
Now you have questions — and probably some panic:
- Will this cost me the refinance?
- Could it make my buyer walk away?
- Will it hurt my credit?
- Can they actually do this without my permission?
At Bennett Legal, we hear this story from homeowners nationwide almost every week. Some liens are legitimate. Many are not. And in countless situations, companies file them without clear disclosure or consent, leaving homeowners stuck — unless they fight back.
The good news? In many cases, we can not only remove the lien but also pursue compensation for the damage it caused.
This guide breaks down everything you need to know, from how UCC liens work to what you can do right now if you discover one.
Is it legal for a solar company to file a lien without telling me?
Short answer:
- Yes — if you knowingly signed an agreement (loan or lease) that disclosed the lien in plain terms.
- No — if you never consented, it was hidden in fine print, misrepresented, or your signature was forged.
Even with legitimate loans, lenders and solar companies must make sure you understand that a lien will be filed. Burying it on page 17 of a contract, hiding it in a “proposal,” or slipping it into e-doc terms you never saw is deceptive — and in some states, illegal.
First things first: What is a UCC Lien?
The Uniform Commercial Code lien — more commonly called a UCC lien — is a public filing that says, “We have a legal claim on this property or equipment until we’re paid in full.” Think of it as a “dibs” notice to creditors.
In solar contracts:
- It’s usually a UCC-1 financing statement filed with your state’s Secretary of State.
- It’s supposed to cover only the solar equipment, not your entire home.
- It’s filed by the lender or financing company to protect their interest.
Why this causes confusion:
If the lien’s description or filing method improperly links it to your property title instead of just the panels, it can appear in a real estate title search — essentially making it look like you can’t sell or finance your home without paying it off. That’s when homeowners panic.
When a UCC Lien Might Be Legitimate
Not all UCC liens are signs of wrongdoing. In some cases, a lien is standard, legal, and even expected — provided you knowingly agree to it and the company follows proper procedures. Below are the most common legitimate scenarios.
1. You Financed Your Solar Panels Through a Loan
Asset-backed loans for solar equipment almost always require a lien until the debt is repaid in full. This lien is a form of collateral for the lender, ensuring they can recover their investment if you stop making payments.
How it works:
- The lender files a UCC-1 financing statement with your state’s Secretary of State.
- The lien description typically lists the solar panels, inverter, and related equipment — not your home.
- Once the loan is fully paid, the lender should file a UCC-3 termination statement to remove the lien from public records.
Real Example – Transparent and Correct Filing
Sarah, a homeowner in Colorado, financed a $29,000 rooftop solar system. Her contract carefully spelled out that a lien would be filed on the equipment. The filing included a precise list: “Thirty-two (32) photovoltaic panels, Model ABC123; one inverter, Model DEF456.
When Sarah made her final payment, the credit union filed a UCC-3 termination within 14 days and sent her written confirmation. The lien never appeared on her real estate title, and her credit was unaffected.
Why this matters: For consumers, the key question isn’t whether a lien exists — it’s whether the lien is limited to what your contract says and whether it’s removed promptly after payoff.
2. You Signed a Solar Lease or a Power Purchase Agreement (PPA)
Under many lease or PPA agreements, the panels remain owned by the solar company, not you. That means they have a vested interest in protecting the equipment. Filing a lien, in this case, gives them the legal right to reclaim the panels if you default on payments.
How This Is Different from a Loan
- You’re not financing the purchase of the equipment — you’re paying for the right to use it (lease) or for the energy it produces (PPA).
- The lien typically states that ownership remains with the solar provider and restricts you from selling or removing the panels without permission.
Example – Standard Lease Filing
Miguel in Arizona signed a 20-year PPA with a national solar provider. The lien filing was limited to the leased panels and inverter. It was never attached to his home because the filing used UCC rules for personal property, not the mortgage recording system. Miguel’s sales contract for his home included a condition that the buyer assume the lease or have the panels removed — the lien did not block the transaction.
Potential challenges:
Even when legal, PPA-related liens can create buyer hesitation if you sell your home. Some lenders require additional documentation or lease assumption agreements to proceed.
3. Honest Administrative or Filing Mistakes
Sometimes, the problem isn’t malicious — it’s a clerical error. These mistakes usually happen during the lien filing process:
- The filing clerk at the state’s UCC office enters the wrong parcel ID or legal description, attaching the lien to your entire property instead of just the panels.
- The lien description accidentally includes “all improvements and fixtures” — legal language typically used for mortgage liens.
- The lien is filed in the wrong jurisdiction altogether.
Real Example – A County-Level Error
In Florida, a homeowner’s solar financing lien was mistakenly recorded in the county property records instead of the UCC database. This made it appear to be a real estate lien, which blocked a refinance until the error was corrected. The lender admitted the mistake and filed a lien release, but the delay cost the homeowner a favorable interest rate.
Why this matters: Even well-meaning companies can cause serious financial consequences if they don’t understand the distinction between UCC personal property filings and real estate liens.
Key Takeaways for Legitimate Liens
- Disclosure is non-negotiable — loans, leases, and PPAs must clearly state lien terms, location of filing, and removal timelines.
- Accuracy matters — errors in filing location, collateral description, or property details can have the same financial impact as an unauthorized lien.
- Prompt termination is your right — under the UCC, you can demand written lien removal within a set time frame (often 20 days) once your obligation ends.
Red Flags That Your Solar Lien Might Be Unauthorized
Not every UCC lien filed by a solar company is valid. In fact, a significant number are improperly filed, overbroad, or outright fraudulent. If you notice one or more of these warning signs, it’s time to investigate — and potentially take legal action.
1. You Never Signed Any Loan or Lease Paperwork
If you didn’t put your name to a legitimate financing agreement or lease contract, the filing could be completely baseless.
Why This Matters
The UCC allows lien filings only when there’s a legitimate security interest. Without a signed agreement, there’s no legal right to collateral.
2. Your Contract Says “No Liens” or Doesn’t Mention Them at All
An omission or explicit “no lien” clause in your agreement means the filing may violate the terms you agreed to. Example: A homeowner’s contract stated “No security interests or liens will be filed,” yet the company filed a UCC-1 anyway — this became strong evidence in a consumer fraud claim.
3. The Lien Amount Far Exceeds the System Cost
Overstating the debt is a common intimidation tactic. If your $25,000 system shows as a $50,000 lien, the company may be padding numbers to gain leverage or discourage challenge.
What to Do
Compare the lien amount line-by-line to your signed contract and any final invoices.
4. The Lien Appears on Your Home Title Instead of Just the Panels
Liens tied to real estate records can dramatically delay sales and refinancing. This typically happens when the filer uses mortgage-like language or records at the county level instead of as a UCC personal property filing. Example: A Florida client had to delay closing by a month because an equipment lien was misfiled as a property encumbrance.
5. The Filer Isn’t Your Solar Lender or Installer
Liens should come from the company you actually contracted with — usually your lender or installer. If a third-party appears that you’ve never dealt with, it’s worth investigating whether the lien was sold, assigned, or fabricated.
6. You Cancelled During Your Allowed Period, But They Filed Anyway
In many states, the FTC and state laws give homeowners a 3-business-day “cooling-off” period to cancel certain contracts. Filing after a valid cancellation is not just unethical — in some states, it’s fraud.
Why These Red Flags Matter: Even one of these signs can indicate an invalid lien. Multiple signs? That’s a case where legal help is often essential, not optional.
Remember: If you recognize some of these red flags, get some legal help. Don’t waste time, and avoid excessive financial loss and emotional toll.
The Most Common Solar Lien Scams
Our firm sees certain patterns again and again. They vary in aggressiveness, but all aim to cement a company’s financial leverage — often at the homeowner’s expense.
- Hidden Financing in “Free Solar” Offers
A pitch promising “no cost, no loan — just lower bills” morphs into a loan agreement buried in fine print or an online account you never knew to access.
- Protection Tip – Insist on taking all documents home. Never sign on the same day as a sales presentation.
- Forged or Misused E-Signatures
You sign on a tablet for “site inspection consent,” but that signature is digitally applied to a 30-page financing contract in the company’s files.
- Protection Tip – Demand a PDF of any document before signing on a device.
- Filing After Cancellation
Even if you invoke your right to cancel within legal timelines, some companies file liens anyway to “scare” you into reinstating the project.
- Protection Tip – Always get written confirmation of lien release status when canceling.
- Inflated Lien Amounts
Upping the recorded debt helps companies posture for higher settlements or discourage lien disputes.
- Protection Tip – Compare the lien’s stated amount to your contract immediately and keep copies.
How lien rules vary by state (examples)
Laws differ widely, so knowing your state’s protections is critical. For example, California offers a 3-day cooling-off period for door-to-door sales and requires homeowners to sign the Solar Consumer Protection Guide, with oversight from the Contractors State License Board. Texas has no general cooling-off rule but allows fraud claims under its Deceptive Trade Practices Act, sometimes awarding treble damages. New Jersey also allows treble damages under its strong Consumer Fraud Act, while Florida requires lien releases if a debt can’t be proven. New York’s Home Improvement Contract Law gives the Attorney General power to act on false filings. Pro tip: Even within a state, rules can vary based on how and where the sale was made — for example, in-home versus at a trade show.
What to Do If You Discover an Unauthorized UCC Lien
A measured, step-by-step approach protects your legal position and speeds removal.
Step 1: Pull Property & UCC Records
Check both the Secretary of State’s UCC database and your county recorder’s office.
Step 2: Get the Lien Copy
A certified copy will show exactly what was filed, who filed it, and the collateral involved.
Step 3: Match to Your Contract
Look for any lien authorizations — or absence thereof. Keep notes.
Step 4: Demand Removal in Writing
Send a certified letter to the filer, with a clear deadline.
Step 5: File a Wrongful Filing Affidavit
Available in many states to publicly contest the lien’s validity.
Step 6: Engage a Consumer Protection Attorney
Lawyers can file court actions or negotiate rapid lien termination.
Step 7: Report Misconduct
Notify your State AG, FTC, and CFPB. Regulatory pressure can speed resolution.
How a Lawyer Helps You Fix This
When Bennett Legal takes your case, we typically:
- File UCC Termination Statements as needed.
- Pursue claims under state consumer fraud statutes.
- Recover attorney’s fees in qualifying states (e.g., TX, NJ).
- Work to clear your title urgently so real estate transactions aren’t derailed.
Can I Prevent This From Happening? A Checklist
- Get all promises in writing — before installation begins.
- Research both installer and lender in CFPB and BBB databases.
- Avoid giving sensitive info (SSN, utility account) early in process.
- Ask outright: “Will you file a UCC lien?”
- Check your state and county records annually — it’s often free online.
You Can Remove a Hidden Lien. All’s NOT Lost.
Finding out that a solar company filed a UCC lien against your home without warning is a shock no homeowner should have to face. It can feel like your property rights were quietly stolen, leaving you blindsided when you try to refinance, sell, or even check your title records. You are not the first to face this — and you do not have to face it alone.
At Bennett Legal, we know how solar companies use liens to trap homeowners in contracts they never fully explained. We also know how to fight back. Our team moves quickly to challenge unauthorized filings, demand lien termination, and pursue damages when your rights were ignored.
Here is how we take action for clients:
- We uncover the truth. We review your contract and title records to determine if the lien was disclosed, valid, or improperly filed.
- We file the challenge. If the lien was unauthorized, we demand immediate termination through UCC filings, affidavits, or court action.
- We push back on fraud. When companies mislead families about liens, we bring claims under state consumer protection laws and seek compensation.
- We clear the path forward. Whether you want to refinance, sell, or simply regain peace of mind, we make sure the lien is removed and your property rights are restored.
You do not have to live with a lien you never agreed to. Bennett Legal is here to protect your home, your equity, and your future.
📞 Call Bennett Legal today for a free consultation. We will review your lien, explain your options, and act immediately to remove what never should have been there in the first place.
FAQs
Will a UCC lien always block my home sale?
Not always, but if it’s tied to your property title, most buyers’ lenders will require it to be removed before closing.
Does a UCC lien hurt my credit?
The lien itself generally doesn’t hit your credit report, but late or missed payments on the underlying loan will.
Can a company keep a lien after I pay them off?
No — they must remove it, usually within 20 days of your written demand, or you can take legal action.
What’s the difference between a lien on my panels vs. my home?
A lien limited to panels is a security interest in personal property; a lien tied to the deed is a real estate encumbrance.
