WHAT YOU NEED TO KNOW ABOUT UNDERGROUND OIL TANK IN NJ?
You decided its time to sell and started getting your house ready for resale, enhanced your yard, and secured a real estate agent. Now, you’re prepared to list your New Jersey home on the market. However, before proceeding, here are some reasons you should make it a top priority to determine if there’s an underground oil tank in your yard prior to putting your home up for sale. The question looming is, “Is it possible to sell a house with an underground oil tank in NJ?”
To provide you with a comprehensive understanding, here’s an overview of everything you need to be aware of when selling a home in NJ with underground oil tanks.
CAN YOU SELL A HOUSE WITH AN UNDERGROUND OIL TANK IN NJ?
Selling a home with an underground oil tank in NJ is permissible, but it can pose challenges in the selling process. Underground oil tanks, even when unused may leak and lead to an expensive soil clean up.
Prior to selling, it is essential to disclose the existence of the tank to potential buyers. Additionally, providing information about the tank’s age and location is a necessary step. Prospective buyers, especially serious ones, will most likely request the removal of the tank as a condition for purchase.
If the buyers don’t understand the risk in purchasing a home with an underground tank, their mortgage company, attorney and insurance company certainly will.
Since oil tanks may ultimately leak, The State of New Jersey Department of Banking and Insurance urges all homeowners with oil tanks to have their tanks tested and inspected and to replace old oil tanks to protect New Jersey’s environment and to prevent a homeowners pollution liability loss.
For non-cash buyers, the tank could be a deal-breaker, as many mortgage lenders are unwilling to finance properties with underground oil tanks. Moreover, numerous homeowners insurance providers do not extend coverage to properties with such tanks.
ARE UNDERGROUND OIL TANKS LEGAL IN NJ, AND DO YOU HAVE TO REMOVE AN UNDERGROUND OIL TANK IN NJ?
Having an oil tank on your property is allowed, currently there are no New Jersey regulations mandating the removal of an underground oil storage tank unless it is leaking. Nevertheless, it is advisable to check with your local municipality to understand any specific ordinances or regulations related to underground oil tanks.
It is important to note that as the tank ages, the likelihood of deterioration creating a leak increases. If your tank is found to be leaking, prompt removal is necessary. A leaking tank will contaminate the soil and possibly the ground water supply, posing risks to human health and the environment. This could also lead to potential liability if a neighbor falls ill due to your tank.
The cost of the removal significantly increases if the tank has leaked making it more financially feasible to remove before it leaks. One single tank leak can cost tens to hundreds of thousands to clean up and has the potential to eliminate any profits the house sale may have provided.
Along with the cost savings of removing a tank sooner rather than later some common benefits of removing an underground tank prior to being under contract is; Not having a looming deadline as the process takes time to apply and receive the permits back and getting on the contractors schedule for removal.
If it leaked it can add months onto the removal process.
HOW WE CAN HELP
If you find an underground oil storage tank on your property, give us a call. We have the knowledge and expertise and experience in removing underground tanks, we’ve been doing it for 25 years. We can explain the process in easy to understand terms and work quickly to get project done in the timeframe you need.
Contact Stewart Environmental Remediation to receive a quote today!
