Selling a House With a PACE Assessment in Florida

If a roof, hurricane windows, or another improvement was financed through PACE rather than a traditional loan, that financing generally follows the property, not just the person who took it out, which matters directly when it's time to sell. Here is generally what a PACE assessment is under Florida law, and what has to happen with it during a sale.

What PACE financing actually is

Under Florida Statute 163.08, PACE, short for Property Assessed Clean Energy, is a financing program authorized for specific "qualifying improvements" to residential property, including repairing or replacing a roof (including improvements that strengthen roof-deck attachment or wind resistance), installing hurricane windows, doors, or storm shutters, energy-efficient HVAC systems, water heaters, insulation, permanent generators, and flood and water-damage mitigation improvements. Instead of a conventional loan, the cost is repaid through a non-ad valorem assessment added to the property's tax bill.

Why it stays with the property, not the person

This is the detail that matters most for a sale. Under Florida Statute 163.081, a recorded PACE financing agreement constitutes a lien of equal dignity to county taxes and assessments from the date it's recorded. In practical terms, this means the assessment is attached to the property itself, similar to a tax lien, rather than being a personal debt that automatically disappears or transfers with the original owner. A title search during a sale will generally surface a recorded PACE assessment, and it typically needs to be addressed as part of the transaction, the same general category as any other lien.

Florida's required seller disclosure

Florida Statute 163.081(8) sets a specific requirement: if a residential property has an unpaid PACE assessment balance, the seller must give the prospective buyer a written disclosure statement, either in the sales contract itself or as a separate writing, at or before the time the contract is executed. The statute specifies the required disclosure language, which states that the property is subject to an assessment for a qualifying improvement, that the assessment is not based on the property's value, and that the buyer is encouraged to contact the property appraiser's office to learn more.

Where a sale fits

An outstanding PACE assessment does not prevent a sale. Like other liens and assessments, it's identified through the title search and closing process and addressed as part of the transaction, whether that means it's paid off from proceeds, negotiated between the parties, or otherwise resolved. The exact current payoff amount, and the specific requirements of the program administrator handling that particular PACE agreement, need to be confirmed directly, since PACE programs are administered by different counties, municipalities, and third-party administrators with their own specific processes. A cash, as-is sale does not remove this requirement: the assessment and its required disclosure still go through the same process regardless of who the buyer is.

Frequently asked questions

What is a PACE assessment in Florida?

PACE stands for Property Assessed Clean Energy. Under Florida law (F.S. 163.08), it's a financing program that lets a property owner pay for qualifying improvements, things like a new roof, hurricane windows or doors, energy-efficient HVAC, or a generator, through a non-ad valorem assessment added to the property tax bill rather than a traditional loan.

Why does a PACE assessment matter for a sale?

Because it's tied to the property, not the person. Under Florida law (F.S. 163.081), a recorded PACE financing agreement constitutes a lien of equal dignity to county taxes and assessments once recorded, and it generally stays with the property through a sale unless it's paid off or otherwise addressed as part of the transaction, similar to any other lien uncovered in a title search.

Does Florida law require sellers to disclose a PACE assessment?

Yes. Under Florida law (F.S. 163.081(8)), if a residential property has a PACE assessment with an unpaid balance, the seller must give the buyer a specific written disclosure statement, either in the contract or as a separate writing, at or before the time the contract is signed. The statute sets out the specific required language for that disclosure.

Can I sell a house with an outstanding PACE balance?

Yes, in general. Like other assessments and liens, an outstanding PACE balance is typically identified during the title and closing process and addressed as part of the transaction, whether that means paying it off from proceeds or otherwise resolving it. The exact payoff amount and how it's handled for a specific property should be confirmed with the program administrator and the title company handling the sale.

Have a PACE assessment on your property and wondering how it affects a sale? Call OfferLink at 407-584-9111. We buy as-is across Florida, including Orange County, Hillsborough County, and Pinellas County. This article is general information, not legal advice. The PACE program administrator and a title company or Florida real estate attorney are the right resources for the exact status and payoff amount on your specific property.