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The huge issue with underground oil tanks is potential leakage.
Insurance companies may not insure you if a tank is underground
Find out all you can about it
when installed
how big
tank material
You "should" have the ground around the tank tested for leakage.
If the worst happens and that tank leaks.
You have one huge costly nightmare
I do not know if there is insurance for this, but if you buy a house with a tank like this, definetly look into insurance.
A friend of mine's neighbor's tank leaked
Oil seeped into my friend's yard, underground
They had to remove top 4 foot of dirt and cart away, truck loads
installed monitoring wells to watch and make sure they got it all.
His house is listed on the federal registry of containated sites.
You think he can sell his house now?
most people do not want an underground tank these days for fear that they might be leaking, but A LOT of homes have oil tanks in the ground in NJ. Some of them are abandoned, and switch to gas or above ground tank, some continue to use them, some remove them, It is not a huge deal to remove them but if there is a leak, you might be responsible for remediation if required.
I think in general people make this a bigger deal than it is. I am always surprised when people say "never buy a house with an underground oil tank" .
edit: well funny timing on my reply. That does sound like a bad situation. It could happen, but you could also dig it out and find dry clean dirt all around it. I doubt you will find info on when most of these tanks were putin, as many were probably put in whenever the house was built or just a very long time ago. I don't know when they stopped putting underground tanks in.
most people do not want an underground tank these days for fear that they might be leaking, but A LOT of homes have oil tanks in the ground in NJ. Some of them are abandoned, and switch to gas or above ground tank, some continue to use them, some remove them, It is not a huge deal to remove them but if there is a leak, you might be responsible for remediation if required.
I think in general people make this a bigger deal than it is. I am always surprised when people say "never buy a house with an underground oil tank" .
edit: well funny timing on my reply. That does sound like a bad situation. It could happen, but you could also dig it out and find dry clean dirt all around it. I doubt you will find info on when most of these tanks were putin, as many were probably put in whenever the house was built or just a very long time ago. I don't know when they stopped putting underground tanks in.
Joe, I think it is a big deal. The potential risk of spillage as described earlier can make your largest investment your largest liability.
The other issue is that as environmental laws get more specific and strict over time what may be 'passable' today, may not tomorrow. There is a reason why even obtaining home owners insurance can become a problem with an underground tank.
most people do not want an underground tank these days for fear that they might be leaking, but A LOT of homes have oil tanks in the ground in NJ. Some of them are abandoned, and switch to gas or above ground tank, some continue to use them, some remove them, It is not a huge deal to remove them but if there is a leak, you might be responsible for remediation if required.
I think in general people make this a bigger deal than it is. I am always surprised when people say "never buy a house with an underground oil tank" .
edit: well funny timing on my reply. That does sound like a bad situation. It could happen, but you could also dig it out and find dry clean dirt all around it. I doubt you will find info on when most of these tanks were putin, as many were probably put in whenever the house was built or just a very long time ago. I don't know when they stopped putting underground tanks in.
I think your underestimating the liabilities. Do a quick search on the NJ forum here about this, you;ll see a few from the past year or so who are financially ruined and on the hook for remediation.
I wouldn't say "never buy a house with an underground oil tank". But you MUST learn the issues and do thorough due diligence. With full understanding, it can be fine, but there are no short-cuts.
Assuming you have the tank inspected, and all looks Ok.
To me, the overriding issue is "Insurance"
"If" you can have a underground tank covered in your insurance policy, or a rider.
go for it.
If insurance will not cover it, why would you (self insure) ?
If insurance will not cover an underground tank, have it pulled and convert to gas.
But then, it would have to be a VERY nice house to do all that, to buy it in peace
Unfortunately, no inspection can really tell you with certainty if an underground tank is leaking.
And be very careful with "insurance". Some homeowners policies will cover 3rd party issues (like if you contaminate groundwater) but not the soil above the water table. Tank policies (not really insurance) provide some specific coverage.
I've gone through it and it can be a nightmare. I wouldn't touch a house until the tamk was pulled out of the ground and certified clean.
say oil tank is underground? Is that costlier to maintain? IS that why the house may be listed at a lower price?
The oil tank needs to go. It is NOT a reason not to buy a house. As others have said just make sure that it is gone before you close and any remediation is taken care of by the seller. Demand documentation.
Just FYI remediation can cost 10's of thousands of dollars.
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