Well then – take it out before you put your house on the market.
As a broker, I’ve seen too many deals go bad over buried oil tanks and the arguments over who is responsible, indemnifications and possible long term effects.
Right now, we’re waiting for the DEC letter to give a Bridgehampton property the “clean bill of health” after a buried oil tank was removed.
Interestingly enough, the initial inspection showed there to be “oil in the soil” around the tank, which has to be reported to the DEC. Turns out there was no leak, but perhaps numerous careless “spills” by the oil delivery company in the past. Almost $8,000 later (paid by the seller), the tank is gone and we are over a month late in closing.
So, the seller can’t move on to their new home, the buyers mortgage rate lock is about to expire (and rates are going up). The buyer also wanted to get possession of the house before summer started so he could make some improvements and possibly rent it for the season – sorry.
Nobody is happy.
Underground tank? Take it out.
Hamptons Real Estate Blog 
2 comments
April 27, 2008 at 3:11 pm
Chuck Marunde
In Washington state, and where I am on the Northern Olympic Peninsula, we have quite a few buried fuel tanks. It’s quite a nightmare for buyers and sellers. I practiced real estate law for 20 years and now as a Realtor I try to educate people on how to recognize and solve this nightmare. Thanks for your post. It’s right on point.
May 13, 2008 at 8:56 am
John
Frequently, a homeowner who is buying or selling a home is faced with a requirement from a lender or an insurance company to have an underground oil tank tested. There are several tests that can be conducted and the need for each varies. Often a combination of tests is appropriate. Tank testing is available in New York, New Jersey, Pennsylvania, Connecticut, Maryland, Delaware and Massachusetts. To obtain information on the most accurate tank test, fill out the contact information below and a representative from Pilgrim Oil Group will contact you.
REPLACEMENT OPTIONS
If your current tank needs to be replaced, you have options. Replace a buried tank with an above ground tank. These tanks are normally smaller, 275 or 330 gallons, and can be customized for hard to fit places. Above ground tanks can also be installed outside a home and hidden in a tank enclosure.
LIFE EXPECTANCIES
The life expectancies of buried oil tanks vary, depending on the materials used in their manufacture, how the tank was installed and the composition of the surrounding soil. Most tanks last many decades without problems. Proper installation and maintenance can further increase the life span of your tank.
TYPES OF TANKS
There are two kinds of residential oil storage tanks.
An above ground storage tank is a tank located outside of a home or in a basement, garage or crawl space.
An under ground storage tank is a tank that is buried beneath the ground.
The size of a tank is indicated on the fuel delivery ticket from the heating oil company. The most common tank sizes are 275 and 330 gallons for above ground tanks, and 550, 1000, and 1080 gallons for under ground tanks.
HEATING OIL STORAGE
Having an oil tank on your property puts you in control of your comfort. You pay for only the fuel that’s delivered, with no estimates or question.
http://www.oilforless.com