Oil Tanks

Ten years ago, oil tanks were no big deal. Buyers never asked about them, attorneys never included them in their riders, and sellers never worried about them. However, now the oil tank issue is here to stay. Older houses that originally had oil tanks, usually have an abandoned tank buried beneath the sidewalk, even if the property was long ago converted to gas. A leaking oil tank is an environmental hazard that can cost an owner tens of thousands of dollars to clean up. Sometimes, these tanks have been filled but left buried. Some owners have had the oil tank tested for leakage and when it did not appear to have leaked, had it filled rather than remove it.

Today, when an oil tank is determined to exist (sometimes the only way to know is by the hiring of a company that specializes in finding them, using a device not unlike the metal detectors used by treasure hunters at the shore), most buyers and their attorneys want it removed regardless of whether or not it is leaking. Sellers can refuse if it is tested and it is determined that it is not and has not been leaking, but not removing it is always a battle.

Sellers should count on the likely possibility of the the need to remove an oil tank on the property. Buyers should perform their due diligence by asking if one exists, having the property tested for one if the owner is uncertain, and then negotiating with the seller regarding how the problem will be addressed. One friend of mine recently took his house with the oil tank in place. He had it tested and knew it was not leaking. He knows he will need to remove it eventually. But he got an excellent price on his fixer-upper and it was worth the aggravation of the future job and expense. Removal of an oil tank can vary greatly depending on size and whether or not it is full of oil. An average price for Hoboken is about $5000-$8000. Once the job is done, you receive certification that the tank was removed...a piece of paper you will need to hold onto for years to come.