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Me and my wife are first time home buyers and our offer was accepted on house that we liked (suffolk county). There are two major issues on the house:
underground oil tank
electrical upgrade (currently fuse panel)
From reading the posts, i think the best solution for the tank is to legally abandon it without testing the soil and install a new tank in the basement; and for the electrical is to just simply update it.
We will meet with our lawyer within a few days but before we meet with him (and i think he will explain everything that needs to be done), I just want to get an idea of what to expect....
My silly question is that are these issues need to be fixed before closing and should I have seller shoulder the cost - i don't want to upset the seller because i believe the price i got pertains to the condition of the house....
Also, do some lenders/insurance companies deny lending/coverage because of these 2 issues we are facing?
IMPO, you should have your attorney speak with the seller's attorney regarding these items. Most insurance companies will no longer provide new policies to homes with underground tanks. As for the electric, this could be costly as well and needs to be addressed before signing contracts. Was this home listed "as is"?
IMPO, you should have your attorney speak with the seller's attorney regarding these items. Most insurance companies will no longer provide new policies to homes with underground tanks. As for the electric, this could be costly as well and needs to be addressed before signing contracts. Was this home listed "as is"?
It was not listed "as is", but it is an estate sale....
It really may depend on how good a deal you got the house for, but it does need to be safe to dwell in (the electric) and the tank is definitely an issue.
It really may depend on how good a deal you got the house for, but it does need to be safe to dwell in (the electric) and the tank is definitely an issue.
Thanks for the quick response HomeFinder.
My other silly question is in regards to the underground tank - if it goes through the process of legally abandoning it before closing (without testing the soil), will it still be an issue even though it already leaked at some point - the house, and i assume the tank, were built in 1955.....
if it goes through the process of legally abandoning it before closing (without testing the soil), will it still be an issue even though it already leaked at some point
If you don't test the surrounding soil (which normally would not be done unless there's evidence of a past or current problem) then how would anyone know whether there had previously been any leaks?
By the way, you do know that because this is an estate sale the seller is exempt from having to provide you with the otherwise-required Property Disclosure Statement, right? So you will not be getting that OR the $500 credit at closing in lieu of the statement. Houses that are sold by an estate are exempt because it's assumed that whoever is selling it on behalf of the deceased cannot be expected to have knowledge of the house's physical "history".
I do not believe it is acceptable to request a seller to upgrade an electrical panel unless your inspector can show it is somehow dangerous.
This is just my opinion.
I would investigate the tank a little more. Do you want to move into house that stinks up like oil everytime it rains? I almost did. First off get your own engineer to check out the property before you sign anything - spending the $500 can save you hundreds of thousands! This is standard practice!
I found a house in Long Beach years ago that was selling for a great price during the boom - for some curious reason it was unoccupied. I was so happy to find an affordable house, I was almost ready to skip the inspection. Even the crummy RE broker who probably knew something was up said I should get the inspection. Well it rained hard that day and the house stank! It turned out the abandoned oil tank had leaked many years ago, and although steps were taken to remedy the problem, there was nothing that could clean it up 100%. The "water table" sits too high if you live close to the ocean, and that house was pretty much screwed.
I live near there and it comes up for sale every few years like clockwork....
Some banks will not mortgage a house if the electric is not updated. they look for a minimum service, I'm not sure but something like 100amp with circuit breakers.
Have the tank pressure tested, it's not too expensive. If it's good, leave it be for now, and plan for an abandonment and a new above ground tank.
The electric is the bigger issue of the 2 in my oppinion. It's definitely a safety issue for a number of reasons. I would try and use the electric for a bargaining chip if you're really looking to knock off a few extra bucks from the price.
If you really did get a good deal on the house, I wouldn't push your luck too far.
Both issues range in the thousands to repair when all is said and done.
Have the tank pressure tested, it's not too expensive.
Many sellers will not allow their tank to be pressure tested. The reason for this is simple: 1) If a leak is found, they will have a major problem on their hands, and 2) pressure testing itself can sometimes cause a weak tank to leak. Abandonment and replacement is definately a better way to go.
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