Glossary
Lien
A lien is a legal claim a creditor records against your home as security for a debt: if you do not pay, they can go after the property. In solar it shows up with PACE financing (a property lien with priority over the mortgage) and with some secured loans; leases use a UCC-1 filing on the equipment, which is different.
What a lien is
When you borrow money and pledge your home as collateral, the creditor records a lien in the county’s public records. Your mortgage is a lien. A home equity loan is another. While the lien exists, you cannot sell the house with clear title unless you pay it off or the buyer assumes it.
In solar there are three situations people mix up. PACE creates a property lien with priority even over the mortgage. Some solar loans are secured by the home and create a traditional lien. And leases and PPAs do not encumber the house; they file a UCC-1 on the installed equipment.
Why it matters in Florida
Florida homes are sold and refinanced often, and the lien is what shows up when the bank runs a title search. A PACE lien can block a refinance or force you to pay it off entirely at closing. A UCC-1 not properly released after a buyout can delay a sale for weeks while someone tracks down the finance company.
The solar subscription we offer through our partner was designed specifically with no lien and no debt on the property, because for many homeowners that is the deciding point.
Common mistake
Signing without asking what gets recorded and against what. Ask directly: “Does this contract create a lien on my house, on the equipment, or neither?” and have the answer put in the contract. If you plan to sell or refinance in the next few years, that detail weighs more than the rate. More in PACE financing explained.
Full guide: PACE in Florida explained: paid through your property tax, and it complicates selling →
Updated