UCC fixture filing solar panels - installer claiming ownership after we paid cash
Need help with a UCC fixture filing situation that's getting complicated. We bought a solar panel system last year for $67K cash, no financing involved. The installer handled all permits and interconnection paperwork. Now they're saying they filed a UCC-1 fixture filing claiming security interest in the panels even though we paid in full. They say it's 'standard procedure' until final inspection is complete, but it's been 8 months and the system has been operational this whole time. When I check the county records, there's definitely a UCC-1 fixture filing showing them as secured party and us as debtor. This doesn't seem right since we own the system outright. The installer won't discuss removing the filing and our title company is now flagging this as a lien on our property. Anyone dealt with wrongful fixture filings before? What are our options for getting this cleared up?
36 comments
Join the conversation
Anna Kerber
This sounds like a fraudulent filing situation. If you paid cash and have documentation, they have no legal basis for a security interest. UCC fixture filings are supposed to be for actual secured transactions, not as some kind of insurance policy for the installer.
0 coins
Niko Ramsey
•Exactly - this is why proper documentation is so critical with solar installations. The UCC-1 should have been terminated immediately upon final payment.
0 coins
Seraphina Delan
•Wait, are we sure this isn't just a standard lien until final inspection? I've seen contractors do this for warranty purposes.
0 coins
Jabari-Jo
You need to demand they file a UCC-3 termination statement immediately. If they refuse, you can file one yourself as the debtor, but you'll need to provide proof that the debt was satisfied. Keep all your payment documentation - bank records, receipts, anything showing you paid in full.
0 coins
Roger Romero
•I have the canceled check and final invoice marked 'paid in full' but the installer is saying they can't terminate until some mythical 'final inspection' that apparently never happened.
0 coins
Jabari-Jo
•That's nonsense. Final inspection has nothing to do with secured transactions. They're either confused about the law or deliberately stalling.
0 coins
Kristin Frank
•This happened to my neighbor too. The solar company eventually admitted they just file these automatically and forget to clean them up. Total mess.
0 coins
Micah Trail
I ran into something similar with document verification issues. Had to upload everything to Certana.ai's document checker to verify that our payment records actually matched what was filed in the UCC-1. Turned out the installer had filed incorrect amounts and terms. The PDF upload tool caught discrepancies we missed manually comparing documents.
0 coins
Roger Romero
•How does that work exactly? Do you just upload the UCC filing and your payment docs?
0 coins
Micah Trail
•Yeah, you upload both the UCC-1 and your contracts/payment records. It cross-checks debtor names, amounts, collateral descriptions - catches inconsistencies that prove the filing is wrong.
0 coins
Nia Watson
•That actually sounds really useful for this situation since you need proof the filing doesn't match the actual transaction.
0 coins
Alberto Souchard
OMG this is exactly what happened to us!! Solar installer filed a fixture filing even though we got a cash purchase rebate from the state. Took 6 months to sort out and almost killed our refinance. These companies are the WORST about cleaning up their paperwork.
0 coins
Roger Romero
•How did you finally get it resolved? Did you have to get lawyers involved?
0 coins
Alberto Souchard
•We threatened to report them to the state licensing board. Suddenly they found time to file the termination. Sometimes you have to get aggressive.
0 coins
Katherine Shultz
Check your installation contract carefully. Some solar companies include clauses allowing them to maintain fixture filings for warranty or maintenance purposes. It's shady but might be technically legal if you agreed to it.
0 coins
Roger Romero
•Good point - I'll dig through the paperwork again. The contract was like 40 pages of fine print.
0 coins
Marcus Marsh
•Even if it's in the contract, a fixture filing implies ownership interest which they shouldn't have for warranty work.
0 coins
Hailey O'Leary
•Right, maintenance agreements don't require UCC filings. This sounds like either incompetence or fraud.
0 coins
Cedric Chung
The fact that your title company is treating this as a real lien means you need to act fast. This could affect your property value and any future financing. Document everything and consider filing a complaint with your state's Secretary of State office if the installer won't cooperate.
0 coins
Talia Klein
•Definitely this. UCC fixture filings become part of the real estate record and can cloud title for years if not properly terminated.
0 coins
Roger Romero
•I didn't realize how serious this was. The title company made it sound like just a paperwork issue.
0 coins
Maxwell St. Laurent
Is this one of those lease-to-own solar deals where you thought you were buying but actually entered into a financing agreement? I've seen people get confused about the terms, especially with zero-down programs.
0 coins
Roger Romero
•No, definitely a cash purchase. I have the bank withdrawal for the full amount and no monthly payments or financing terms.
0 coins
Maxwell St. Laurent
•OK then this is definitely improper. They have no basis for a security interest in equipment you own free and clear.
0 coins
PaulineW
•Yeah this sounds like they're using UCC filings as some kind of business process management tool which is totally wrong.
0 coins
Annabel Kimball
I work in commercial lending and see fixture filing issues all the time. Your situation screams wrongful filing. Start with a certified letter demanding termination within 30 days. If they don't respond, you can file for damages under UCC Article 9 for wrongful filing.
0 coins
Roger Romero
•There are actually damages available for this? I thought it was just a paperwork hassle.
0 coins
Annabel Kimball
•Absolutely. Wrongful UCC filings can result in actual damages plus attorney fees in many states. It's taken seriously because it affects credit and property rights.
0 coins
Chris Elmeda
•This is why proper UCC procedures matter. Filing false security interests can have real legal consequences.
0 coins
Jean Claude
Before going nuclear with lawyers, try one more time with the installer's management. Sometimes the person you're dealing with doesn't understand UCC law and a supervisor can get it sorted quickly. But definitely set a firm deadline.
0 coins
Roger Romero
•That's probably worth trying. The person I've been talking to seems pretty confused about the whole process.
0 coins
Charity Cohan
•Good advice. A lot of these solar companies have grown so fast they don't train their staff properly on filing procedures.
0 coins
Josef Tearle
Update us on how this turns out! I'm in the process of buying solar panels and want to make sure I don't run into the same issue. This thread is really helpful for knowing what to watch out for.
0 coins
Roger Romero
•Will definitely update once it's resolved. Hopefully others can avoid this headache by being more careful about the paperwork upfront.
0 coins
Shelby Bauman
•Yeah, definitely make sure any UCC filings are properly terminated at closing if you're paying cash. Don't assume the installer will handle it automatically.
0 coins
Quinn Herbert
•Also get everything in writing about when and how any security interests will be released. Don't take verbal promises.
0 coins