During foreclosures in New York, lenders usually try to claim all assets connected to the property. But what happens if something attached to the home belongs to someone else?
Recently, Bashian & Papantoniou, P.C. won a key case for a solar panel company by getting summary judgment. The court confirmed an important point: solar panels can be personal property, and when they are, they are not included in foreclosure.
This case shows our firm’s dedication to protecting clients’ property rights from lenders who go too far.
Understanding Personal Property in Foreclosure Cases
As solar energy grows in New York, more homeowners are leasing systems that are owned by solar companies.
However, in foreclosure cases, lenders often claim that solar panels are “fixtures.” This means they argue the panels are part of the property and can be taken with the home. But that isn’t always the case.
Under New York foreclosure law, it’s important to know the difference between real property and personal property. If something is personal property, it does not get transferred in a foreclosure sale.
This difference was central to our case.
The Legal Issue: Are Solar Panels Fixtures or Personal Property?
In this case, the lender tried to include our client’s solar panel system in the foreclosure. We quickly challenged that move.
Our argument was straightforward and based on established New York law:
- The solar panel system was owned by our client, not the homeowner
- The lease agreement explicitly stated the system would remain personal property
- The system was removable and not permanently affixed
- There was no intent for the system to become part of the real estate
Intent is the main factor in deciding if something is a fixture or personal property under New York law.
We made it clear to the court that the intent in this case was obvious.
The Result: Summary Judgment Protecting Personal Property
Our motion led the court to rule in our client's favor.
The court decided that the solar panel system was personal property, not a fixture, and could not be included in the foreclosure.
Thus, the lender could not claim the system.
This was a meaningful win for our client and reinforced an important rule in foreclosure cases.
Key Takeaway: Foreclosure Does Not Include Personal Property
The court confirmed a basic rule: a foreclosure sale only transfers the lender’s interest in real property.
In other words:
- Personal propert y remains with its rightful owner
- Equipment owned by third parties is protected
- Lenders cannot expand their rights beyond the mortgage
This is crucial protection for equipment leasing companies.
Why This Case Matters for New York Companies and Businesses
This decision matters beyond just this one case.
As more companies install equipment like solar panels, HVAC systems, and other infrastructure on homes and businesses, the risk of losing those assets in foreclosure goes up.
Our win helps make things clearer:
- Solar panels installed under lease agreements are not automatically part of the property
- Ownership and contractual intent matter
- Courts will protect personal property rights when properly presented
This is especially important in New York, where foreclosure cases can be complicated.
How Bashian & Papantoniou, P.C. Won the Motion
At Bashian & Papantoniou, P.C., we handle every case with a clear plan and a focus on getting results. In this matter, we:
- Identified the core issue immediately—fixture vs. personal property
- Built a targeted summary judgment motion focused on intent and ownership
- Used the contract language to reinforce our position
- Highlighted controlling New York case law
- Presented a clean, persuasive argument that the court could adopt
We stayed focused on the main issue and won the case.
Our Commitment: Protecting Your Property Rights
Every day, we protect our clients when their property is at risk.
If someone tries to take what doesn’t belong to them, we take action.
At Bashian & Papantoniou, P.C.:
- We fight aggressively for our clients’ rights
- We challenge improper claims in foreclosure and commercial litigation
- We protect personal property interests, even in complex real estate disputes
- And when necessary, we create legal precedent that benefits our clients and their industries
If a problem comes up, we step up and don’t back down.
Contact Bashian & Papantoniou, P.C.
If your personal property is at risk in a foreclosure or real estate dispute, contact us today. Take action now to protect what belongs to you.
We have the experience and results to protect your property.
Call us today at (516) 279-1555. We win for our clients and we’re ready to fight for you.
The decision: click here