When selling a home with an underground oil tank, homeowners must be aware of the potential risks and challenges associated with these buried fuel storage systems. While they were once a common heating solution, underground oil tanks have become a significant concern due to the potential for leaks, environmental contamination, and regulatory compliance issues.
The Risks of Underground Oil Tanks
Oil Leaks and Environmental Contamination: Over time, underground oil tanks can deteriorate, leading to leaks that may contaminate the surrounding soil and groundwater. Even minor leaks can result in costly remediation efforts and may pose serious health hazards to residents and neighboring properties.
Legal and Regulatory Issues: Many states and municipalities have strict regulations regarding underground oil tanks. Sellers may be required to disclose the presence of a tank, provide documentation of its condition, or even remove it before a sale can proceed. Failure to comply with local regulations can lead to fines and legal complications.
Decreased Property Value: The presence of an underground oil tank can deter potential buyers due to perceived environmental risks and future liabilities. Homes with oil tanks may sell for less or take longer to find a buyer compared to properties without them.
Insurance Challenges: Many insurance companies are reluctant to provide coverage for homes with underground oil tanks due to the potential financial risk associated with leaks and cleanups. Homeowners may face higher premiums or difficulty obtaining coverage.
Steps to Take When Selling a Home with an Underground Oil Tank
Conduct a Professional Inspection: Before listing the property, hiring a certified environmental professional to inspect the tank can provide valuable information on its condition and whether any leaks are present.
Obtain Documentation: Gather any records related to the installation, maintenance, and previous inspections of the tank. Having this documentation readily available can provide buyers with peace of mind and help expedite the sales process.
Consider Tank Removal: If feasible, removing the underground oil tank and replacing it with an above-ground tank or an alternative heating system can significantly increase buyer confidence and eliminate future liabilities.
Disclose the Tank to Potential Buyers: Transparency is key when selling a home with an underground oil tank. Providing full disclosure about the tank’s presence and condition can help build trust with buyers and prevent legal disputes down the road.
Explore Financial Assistance: Some states offer financial assistance or tax incentives for homeowners looking to remove underground oil tanks and remediate any contamination. Researching available programs can help offset costs.
Selling a home with an underground oil tank requires careful planning and transparency. Addressing potential risks proactively and ensuring compliance with environmental regulations can help facilitate a smoother sales process and protect both the seller and potential buyers from unforeseen liabilities.
We’ve been removing underground storage tanks for 25 years and have the knowledge, experience and expertise to get the job done correctly even when the difficulty level is high. We specialize in Oil Tank Removal in NJ, PA, DE & CT
