Krista Becka | Arizona Real Estate and Lifestyle

Category: Selling a Home in Scottsdale

  • Leased Solar Panels and Your Scottsdale Home Sale

    Leased Solar Panels and Your Scottsdale Home Sale

    What happens to leased solar panels when you sell a home in Scottsdale?

    Leased or financed solar doesn’t convey like a roof or a pool. In Arizona, the buyer generally has to be approved by the solar company to take over your lease or loan, and the Arizona REALTORS® Solar Addendum makes the sale contingent on that approval. Lessors commonly take 30 to 60 days to process a transfer, while a standard Arizona escrow runs 30 to 45, so sellers who start the paperwork before they list are the ones who close on time.

    By Krista Becka, REALTOR® and Broker Associate | November 5, 2026

    Solar is one of the few items in a Scottsdale sale that can clear the inspection, the appraisal, and the buyer’s lender, then still stall the deal in the final two weeks. It usually isn’t because anyone did something wrong. The lease is a third-party contract, and nobody checked what the solar company needs until escrow was already running.

    Here’s how the Arizona process works, where the timeline breaks, and what to do before you list or write an offer.

    Why a solar lease isn’t like a pool or a roof

    Start with what you actually have. There are four common setups, and they behave very differently at sale:

    • Owned outright. The system is part of the property. It’s a feature, and you market it like one.
    • Financed with a solar loan. You own the system, but there’s a lien-style obligation. You either pay it off at closing or the buyer assumes it.
    • Leased. The solar company owns the panels. Your buyer has to take over the lease, or you end it.
    • Power purchase agreement (PPA). You pay for the power, not the panels. It’s treated like a lease at sale.

    Only the first one is simple. The other three are contracts, and a contract can’t be handed to a buyer without the other party’s say-so.

    Arizona REALTORS® handles this with its Solar Addendum, which attaches to the standard purchase contract. It makes the buyer’s purchase contingent on getting the lessor’s approval to assume the lease or loan. The form was revised in November 2025 after problems with solar companies going bankrupt, and the main change matters to you: the buyer now has to apply for assumption immediately instead of waiting until the inspection period ends.

    That’s a real improvement. It also means the clock starts the day you go under contract.

    The timeline problem that breaks deals

    Put the numbers side by side:

    • Inspection period: 10 days under the standard contract.
    • Escrow: typically 30 to 45 days from acceptance.
    • Lessor processing: commonly 30 to 60 days, depending on the company.
    • Approval deadline: under the addendum, no later than three days before close of escrow.

    If the buyer applies on day two and the lessor is slow, you’re already tight. If the buyer applies late, or the file needs more documents, you can end up asking for an extension you didn’t plan on.

    Where buyers fall short

    Most lessors run a credit check. The minimum score varies by company and is commonly somewhere between 650 and 700. Two things catch buyers off guard:

    • Debt-to-income. A lender may count the assumed lease payment in the buyer’s ratios. Local agents report deals where a $100 to $150 monthly lease payment was enough to push a borderline buyer out of qualifying.
    • Credit score fees. Some lessors will approve a buyer below their threshold if the buyer pays an added fee. The addendum gives the buyer the right to cancel instead of paying it, on a short clock. Check the exact window on your signed form.

    A transfer or assumption fee is also common now. The addendum has a spot to record who pays it, so negotiate it up front rather than assuming.

    If the buyer can’t be approved

    The contract is generally cancelled and the buyer’s earnest money is refunded. You’re then back on the market with a listing history buyers can see. Many leases also expect you to buy out the remaining term before closing if the transfer doesn’t happen. One local source puts typical buyouts at $5,000 to $15,000, with some above $20,000. Your lessor can give you a real payoff figure in writing.

    Scottsdale carried roughly 4.2 months of inventory in July 2026, according to the Scottsdale Area Association of REALTORS®. Buyers have choices, and a buyer who hits a solar snag won’t wait around if there’s a comparable home without one.

    What to do before you list

    If you’re selling a home with leased or financed solar, this is the order I’d work in:

    1. Pull your agreement and call the solar company now. Ask for the transfer packet, the transfer fee, the minimum credit requirement, the processing time, and a buyout quote. Get all of it in writing.
    2. Decide: transfer or buy out. Transferring keeps your costs low but narrows the buyer pool and adds time. Buying out costs cash up front but removes the contingency entirely. Run both numbers before choosing.
    3. Disclose it fully. Attach a complete copy of the lease or loan to your Seller’s Property Disclosure Statement, along with the monthly payment, remaining term, any escalator, and the company’s contact. If you’re also weighing a pre-listing home inspection, have the inspector document the system’s condition while they’re there.
    4. Price for the actual deal. A buyer assuming, say, a $140 monthly payment with 12 years left is evaluating a different home than one with owned panels. Your pricing should reflect that, and your remarks should explain it.
    5. Complete the Solar Addendum accurately. State who pays the transfer fee, and have the buyer’s lender look at the payment before the offer is final, not three weeks into escrow.
    6. Build the timeline backward. Work from the closing date, subtract the lessor’s processing time, and confirm the buyer’s application date is on the calendar.

    If you’re the buyer

    Apply for the assumption immediately after you’re under contract, and ask these before you write the offer:

    • How old is the system, and does it include battery storage?
    • When does the lease end, and what are the payoff terms?
    • Is there a grandfathered utility plan that transfers, or does it reset?
    • What does the lease say about roof repairs and system removal?
    • Has your lender confirmed the payment fits your ratios?

    Arizona’s own addendum lists items like age, battery storage, end-of-lease terms, grandfathered utility plans, and grid tie-in as things to investigate within the allotted timeframe. Brokers aren’t solar experts, so have your lender, your CPA, or the solar company confirm the numbers that matter to you.

    Every situation is different. The right answer for your home depends on your lease terms, your price point, and how quickly you need to close. That’s exactly what I walk clients through before we list.

    Frequently Asked Questions

    Do leased solar panels convey with a house in Arizona?

    Not automatically. Leased panels belong to the solar company, so the buyer has to be approved to assume the lease, or the seller has to end it. The Arizona REALTORS® Solar Addendum makes the buyer’s purchase contingent on that approval.

    How long does a solar lease transfer take in Arizona?

    Providers commonly take 30 to 60 days to process a transfer, and a standard Arizona escrow runs 30 to 45 days from acceptance. That gap is why the buyer should apply immediately after going under contract.

    Can a buyer back out if the solar company won’t approve them?

    Generally yes. Under the addendum, if the buyer can’t obtain approval on the terms of the existing lease or loan, the contract is cancelled and the buyer is entitled to their earnest money. Confirm the exact wording and deadlines on your signed contract.

    Should I pay off my solar lease before I sell?

    It depends on the buyout figure, your buyer pool, and your timeline. A buyout costs cash but removes the contingency and widens your audience. Get a written payoff quote from the lessor and compare it against the cost of delay and a smaller buyer pool before you decide.

    If you own a home with leased solar and you’re thinking about selling, schedule a consultation at kristabecka.com/contact — I’m happy to walk you through the transfer timeline before it affects your closing date.

    About Krista Becka

    Scottsdale Realtor Krista Becka helps buyers and sellers across Scottsdale, Arcadia, Paradise Valley, and Greater Phoenix make confident moves. For nearly two decades she’s guided move-up buyers and sellers, relocation clients, and investors, protecting equity and helping clients avoid costly mistakes. A Broker Associate with Compass, Certified Luxury Home Specialist, and Certified Negotiation Expert, Krista blends data-driven pricing with hyperlocal insight and concierge-level service. Connect with Krista at kristabecka.com

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  • Arizona SPDS: What Scottsdale Sellers Must Disclose

    Arizona SPDS: What Scottsdale Sellers Must Disclose

    What do you have to disclose when selling a home in Scottsdale, Arizona?

    You have to disclose every material fact you know about the property, meaning anything that could affect a buyer’s decision or the home’s value. In practice, that’s done on the Arizona Association of REALTORS® Seller’s Property Disclosure Statement (SPDS), which the standard purchase contract expects you to deliver within 3 days after contract acceptance. The duty applies even in an As-Is sale, and fixing a problem doesn’t erase it. Past repairs, unpermitted work, and known defects belong on the form, with explanations.

    By Krista Becka, REALTOR® and Broker Associate | November 4, 2026

    Most sellers I work with don’t get into trouble because they hid something. They get into trouble because they answered “no” from memory, or assumed a repair that’s been fixed doesn’t count. In a market where Scottsdale had roughly four months of supply in October 2026, buyers have options and their inspectors are thorough.

    What trips up sellers and how to fill it out well.

    What the SPDS is and when it’s due

    The SPDS is a roughly 10-page form from the Arizona Association of REALTORS®. It walks through ownership and property details, building and safety items, utilities, sewer or wastewater, environmental conditions, and anything else a buyer would want to know.

    Under the standard Arizona purchase contract, the seller delivers the completed SPDS 3 days after contract acceptance. The contract language and deadlines can be modified, so check the version you actually signed. A buyer reads it, schedules inspections, and decides whether to move forward, ask for repairs, or cancel within their due diligence window.

    Two points matter more than the form itself:

    • The duty exists whether or not the form is used. Arizona’s disclosure obligation attaches to material facts you know, so it doesn’t disappear if the parties skip the SPDS.
    • “As-is” doesn’t mean “undisclosed.” As-is changes who handles repairs. It doesn’t change what you have to tell the buyer.

    How the SPDS fits with inspections

    Buyers don’t need to read the SPDS in isolation. They can hand it to their inspector, then compare what you wrote against what the inspection finds. When the two match, the conversation stays about price and repairs. When the inspection turns up something the form didn’t mention, the conversation can turn to trust, and that can be expensive.

    That’s why I often recommend a pre-listing inspection on larger or older homes. You see the same list the buyer’s inspector will see, you decide what to fix before photos, and you disclose what’s left in your own words. It also gives you documentation to attach to the SPDS instead of leaving the buyer to wonder.

    If you’re on the buying side, read the SPDS line by line before your inspection, and ask your agent about every “yes” and every “unknown.” Those are the places to point your inspector.

    Filling it out the right way

    Where Scottsdale sellers get tripped up

    At $1 million and above, homes tend to have more systems, more additions, and more history. That’s where the gaps show up:

    • Pool, spa, and outdoor kitchen equipment. Pumps, heaters, automation, and past leaks. If you’ve had a repair, say so.
    • Additions and conversions. Casitas, enclosed patios, garage conversions, and remodels. If you don’t know whether the work was permitted, the honest answer is “unknown,” and you shouldn’t check “permitted.”
    • Roof history. Repairs, leaks, tile underlayment issues, and flat-roof sections on contemporary builds.
    • Solar. Owned versus leased or financed systems changes what a buyer assumes and what their lender needs to see.
    • HVAC and plumbing. Multiple units on larger homes, older supply lines, and past repairs.
    • Drainage, grading, and flood-related history. Even small incidents count.
    • Sewer, septic, or well. Common on larger-lot properties outside the dense parts of the city.
    • HOA items. Assessments, pending special assessments, architectural restrictions, and rental limits.
    • Pest history. Termite treatments and any known damage.

    A good rule: if a past buyer, inspector, insurance carrier, or contractor ever mentioned it, it probably belongs in the explanation field.

    A step-by-step approach

    1. Gather documents first. Permits, repair invoices, warranties, pool service records, roof reports, and prior inspection reports. Attach them where they fit.
    2. Answer from knowledge, not memory. Walk the property with the form in hand.
    3. Explain every “yes.” A short, factual note, with a date and what was done, builds credibility.
    4. Don’t speculate. If you don’t know, say you don’t know. Don’t guess in either direction.
    5. Disclose repaired issues. A fixed problem with a receipt reads very differently than one a buyer discovers later.
    6. Update it if something changes. If a new issue appears after you submit the form, tell your agent so the buyer is told promptly.
    7. Have your agent review it before it goes out. Not to soften it, but to make sure it’s complete and consistent with your listing.

    I’d rather spend an hour with a seller before we list than spend days after contract sorting out a surprise. The pre-listing conversation is where we decide what to inspect, what to repair, and what to disclose.

    What happens if you leave something out

    A material fact omitted from the SPDS can give a buyer grounds to cancel during the contract period, and potentially to pursue a claim after closing. Intentional concealment can be treated as fraud. Even without bad intent, a buyer who finds something your form should have mentioned is a buyer who negotiates harder, or leaves.

    None of this is legal advice. If you’re in a situation with a known significant defect, a dispute, or an estate or trust sale, talk to your Arizona real estate attorney alongside your agent. Every situation is different, and the answer for your property depends on what you actually know about it.

    Frequently Asked Questions

    Where can I find a copy of the Arizona Association of REALTORS® Seller’s Property Disclosure Statement (SPDS)?

    You can download a copy at Arizona Seller’s Property Disclosure Statement.

    Is the SPDS required by law in Arizona?

    The form itself comes from the Arizona Association of REALTORS® and is built into the standard purchase contract, but the underlying duty is broader. Arizona expects sellers to disclose known material facts, and that obligation exists even if the SPDS is waived or the sale is as-is.

    Do I have to disclose repairs I’ve already fixed?

    Yes. Past repairs, especially for roofs, plumbing, pools, and water intrusion, are generally part of the history a buyer would want to know. Include what happened, when, who did the work, and attach the invoice if you have one.

    What if I don’t know whether work was permitted?

    Say that you don’t know. Don’t mark it permitted without proof. Your agent can help you check city records and decide whether to address it before listing.

    Can I sell as-is and skip the disclosure?

    No. As-is means you’re not agreeing to make repairs, but you still have to be truthful about what you know. The disclosure duty stays in place.

    If you’re getting ready to list and want a second set of eyes on your SPDS before it goes to a buyer, schedule a consultation at kristabecka.com/contact — I’m happy to walk through it with you.

    About Krista Becka Scottsdale Realtor Krista Becka helps buyers and sellers across Scottsdale, Arcadia, Paradise Valley, and Greater Phoenix make confident moves. For nearly two decades she’s guided move-up buyers and sellers, relocation clients, and investors, protecting equity and helping clients avoid costly mistakes. A Broker Associate with Compass, Certified Luxury Home Specialist, and Certified Negotiation Expert, Krista blends data-driven pricing with hyperlocal insight and concierge-level service. Connect with Krista at kristabecka.com