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Hi. I'm in the process of buying my first home (in Maplewood) and am currently in attorney review. The house has been converted from oil to gas heat, but apparently the oil tank is under the basement (not in the basement) and hasn't been removed. It has been decommissioned, and I am awaiting documentation. I know it was filled with sand. On the disclosure, the seller said documentation will be provided, but checked "NO" on the question, "Can you provide a closure certificate?"
What should I be looking out for? My lawyer mentioned that there are risks in buying a home with a decommissioned tank, especially if the soil is contaminated or if future buyers want the tank removed.
I've searched the forums and can't find much info on this situation and am thus unsure how to proceed.
Please by all means be sure that the oil tank is removed or filled by the current owner before you purchase this home. I had a similar problem when I tried to sell my second property. The house was converted from oil to gas and the original owner never removed or filled the tank. Before I could get rid of the property I had to have the tank inspected and filled at a cost of around $2000.00. Luckily there was no leakage or spillage of oil or I would have been responsible for the clean up and depending on how for the leakage runs the damages could be extensive. Buyer Beware!!! Be sure they provide documentation or certificate.
Last edited by cniknik; 03-20-2008 at 09:16 PM..
Reason: Addition
This one has, apparently, been filled. I worry it may not have been filled properly (due to being under the basement).
Is it possible to have the tank and soil tested if it's under the basement? The seller isn't going to be amenable to someone drilling/cutting through their finished basement floor.
Under no circumstances would I recommend you buy the property without certification from the seller. End of story.
Its WAY too big of a liability. You can get hit VERY hard financially if the tank had leaked, but didn't get the letter, and it is discovered that the soil is contaminated while you own it. It doesn't matter if its your fault or not, it'll be your problem. My suggestion, make it a sticking point on the purchase.
Hi. I'm in the process of buying my first home (in Maplewood) and am currently in attorney review. The house has been converted from oil to gas heat, but apparently the oil tank is under the basement (not in the basement) and hasn't been removed. It has been decommissioned, and I am awaiting documentation. I know it was filled with sand. On the disclosure, the seller said documentation will be provided, but checked "NO" on the question, "Can you provide a closure certificate?"
What should I be looking out for? My lawyer mentioned that there are risks in buying a home with a decommissioned tank, especially if the soil is contaminated or if future buyers want the tank removed.
I've searched the forums and can't find much info on this situation and am thus unsure how to proceed.
I would not buy that house unless that tank is removed and its certified that no oil hit groundwater.
Trust me, I went thru that in Manalapan and it cost State Farm, $235,000 . Luckly it was covered because it occured when I was the owner, but if I had bought the house that way it would not be covered.
There was much frustration and grief involved in that cleanup, you don't want a minute of it. My house before being Sold was Certified by Engineers and also the DEP. I could not live there anymore.
Diane G
Hi. I'm in the process of buying my first home (in Maplewood) and am currently in attorney review. The house has been converted from oil to gas heat, but apparently the oil tank is under the basement (not in the basement) and hasn't been removed. It has been decommissioned, and I am awaiting documentation. I know it was filled with sand. On the disclosure, the seller said documentation will be provided, but checked "NO" on the question, "Can you provide a closure certificate?"
What should I be looking out for? My lawyer mentioned that there are risks in buying a home with a decommissioned tank, especially if the soil is contaminated or if future buyers want the tank removed.
I've searched the forums and can't find much info on this situation and am thus unsure how to proceed.
unless the seller can provide certication that the tank was properly decommissioned, run do not walk away from buying that house, like others have noted, it is a potential nightmare to have to fix any kind of a spill
I am speaking with my lawyer today, but one more clarification: if the tank was properly decommissioned and has certification, is that sufficient? Or should I still try to have the soil tested/tank removed?
We sold a house were the previous owners had the tank filled - it was underground. We couldn't find the copy of the certificate we had, but knew the name of the company so we called them and got a copy for the owners buying our house.
I agree - make sure you get that certificate, if they don't have it they can call the company that did the work and get a copy. I actually think it was also filed with the town were we lived so the town should also have a copy or some record of it.
We went to the town and found the permit and documents stating the work was done from the company who filled our tank. We did not get a "Closure certificate" not sure if that is the same idea.
We looked into having the tank removed, and supposedly there is some NJ grant thing going for this. Actually it's aimed more at people who will replace underground tanks with above ground tanks. Or replacing or removing tanks that are specifically leaking, not those which are already "closed". Either way it was about $3000 and we would have to front the money first, and we'd get paid afterwards. So ....the tank will just sit there.
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