Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Hi. I am in contract to buy a home in Hamilton, NJ. We are first time home buyers. It is an REO foreclosure. I had the general inspection and there were no pipes or connections in the basement or on the property to suggest it ever ran on oil. However, the inspector did recommend an oil tank sweep due to the age of the home. (1950). I already spent $ on inspection, C of O inspection, appraisal, etc so I didn't bother with Oil Tank Sweep. We went ahead and were approved for our mortgage. We are supposed to close in 2 weeks. My lawyer called out of nowhere the other day, and suggested we do the sweep because another buyer of hers in the area had a tank on the property and it was a 10k issue.
We did the sweep (another $240), and there is a 4x4 anomaly under the driveway... Bank (seller) won't budge as the sale is "as is" and they had no knowledge of any oil at that home. However, they did ask if we wanted to move on with the sale which shocked me because it is an "as is" sale. We could potentially walk. It seems ignorance is bliss- at least for now because it doesn't seem to be a problem till you literally dig it up. We could live there 20+ years and never know what is in there... unless we go to sell and buyer does their own sweep. It will be another $400 to dig and see what it is. It could be a pipe, old septic, water tank?? If it is an oil tank, and it comes out in perfect condition with no leaks, it'll be $1500-1800. With leaks and soil remediation, it could cost 10k or more...It could be an issue when and if we ever go to sell. My realtor said in all her years working in NJ no one ever had an oil sweep done because the bank doesn't require it. Help!!
Your realtor isn't being truthful, oil sweeps are incredibly common because no seller wants to be stuck with a 10K liability that they didn't create. The only reason I didn't get one is because the next three houses over are the exact same kit house and the oil tanks are in the basement and were never buried. Right now it's the seller's problem and them not budging is, quite literally, just a negotiating tactic. They want to know if you're going to move forward or if they're going to lose time (and money) putting it back out there again. If you were the only bidder you're going to be in a lot stronger position.
When you sell (you can't say you never will because you are not going to live forever, you will sell this house) the next buyer is going to find the same thing and you're now going to be on the hook as the seller. Only prices for all this stuff will have gone up. It can become your problem if it leaks, any groundwater contamination is your problem, and ignorance of the problem still leaves you with the liability.
I'd be looking into neighboring houses at this point and see what information there is there. The 50's were a transitional time for home heating so it depends greatly on when any gas lines were run to the area as well.
Pay particular attention to a poster called wileynj, she is an environmental contractor with extensive experience in buried tanks. And Diane Giam, formerly of Manalapin NJ, who had a leaky tank removed, cost her insurance co. $235,000.
If you do a City Data search of this topic, there are multiple threads about buried tanks in NJ not all are awful but I wouldn't risk it!
Thank you for your replies. We love the house so we are willing to pay the $400 to see what it is. We would hate to walk away and it’s nothing. It is 4x4 in size. It could be anything. My lawyer contacted them late today and said we are willing to get the dig done but if an oil tank is discovered they would have get it taken out and pay for any remediation. I’m sure they won’t go for this though. They won’t let us tear up a driveway on a house they are trying to sell on a chance it’s an oil tank and then we walk...They’ll probably let us out of the deal and 🙏🏻 And relist it and not disclose. If the next interested party doesn’t scan, the bank is golden...
Thank you for your replies. We love the house so we are willing to pay the $400 to see what it is. We would hate to walk away and it’s nothing. It is 4x4 in size. It could be anything. My lawyer contacted them late today and said we are willing to get the dig done but if an oil tank is discovered they would have get it taken out and pay for any remediation. I’m sure they won’t go for this though. They won’t let us tear up a driveway on a house they are trying to sell on a chance it’s an oil tank and then we walk...They’ll probably let us out of the deal and 🙏🏻 And relist it and not disclose. If the next interested party doesn’t scan, the bank is golden...
Oh good. Glad you are going forward, what have you got to lose (other than $400!)
Come back and let us know what it turned out to be!
As a former realtor I always told my buyers to pay for the sweep for any home built in the 50s to the 70s; very common to have underground tanks and you don't want that coming back to bite you, especially there is still oil in it and it eventually leaks -- that could be a nightmare. However, it does seem odd that someone would bury a tank under a driveway -- how would it get filled?
Your realtor dropped the ball but the lawyer saved the day. It's very common to do oil sweeps on homes with that age. Also, while the house is being sold "as is" that doesn't mean that you are stock in the deal, just means the bank has made it clear they will not pay for any repairs. I would like to think they will cover the cost of remediating the oild tank if one is found, it is very unlikely they'll be able to sell the home until that is taken care of.
Definitely do the dig. I worked for a tank removal and remediation company. I use to perform site inspections when customers had tanks or an anamoly was found. Most times the anomaly turned out to be a tank. People were often surprised to find the tank because they bought the house 30 years ago and they had always been on gas. Getting sweeps done is very common on real estate transactions. Your realtor lied to you. Good thing is, older tanks are generally made out of a thicker grade of steel and often held up better than newer tanks. Good Luck.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
