Oil Tank Contamination (insurance, how much, house)

[Renter1]

Looking at a bank-owned home with oil contamination from oil tank removal. The house is being sold "as is". How much should I budget to clean up the contamination? Would you even consider?

[luckyshoes]

I wouldn't but I'm lazy.

[ansky]

I wouldn't even consider it. I have heard some horror stories about oil tank contamination. When we bought our house earlier this year our home inspector told us about one home he knew of where it has taken over a year to clean up the oil contamination and has cost the owner over $100,000, not to mention the amount of damage caused to the home and yard. This may be an extreme case, but unless this is your dream home it sounds like nothing but a huge headache to me.

[wileynj]

Originally Posted by Renter1

Looking at a bank-owned home with oil contamination from oil tank removal. The house is being sold "as is". How much should I budget to clean up the contamination? Would you even consider?

Hummm..way to risky! It can be a few thousabd to a few hundred thousand maybe more! You'll need alot more information other than "leaking tank"... how much, how big... did it impact ground water? Is there a well on-site? If so, was that impacted. I'd walk.

[Hal Jalikeakick]

obtaining insurance would be next to impossible i would think.

[luckyshoes]

Originally Posted by ansky

I wouldn't even consider it. I have heard some horror stories about oil tank contamination. When we bought our house earlier this year our home inspector told us about one home he knew of where it has taken over a year to clean up the oil contamination and has cost the owner over $100,000, not to mention the amount of damage caused to the home and yard. This may be an extreme case, but unless this is your dream home it sounds like nothing but a huge headache to me.

Yes, it can be a total nightmare involving the DEP etc. Tell the bank to clean up their mess.

[Renter1]

I think the jury has reached its verdict. Thanks a lot guys!

[wileynj]

Originally Posted by Hal Jalikeakick

obtaining insurance would be next to impossible i would think.

You could probably get a policy for the structure only.

[actank]

Originally Posted by Renter1

Looking at a bank-owned home with oil contamination from oil tank removal. The house is being sold "as is". How much should I budget to clean up the contamination? Would you even consider?

It seems to me that the bank is responsible. There should be a NJDEP spill number assigned to this property and the owner is responsible to stop the leak and do the remediation. If the house is still heated by oil have they installed a new tank or are they still using the leaking tank. If they are still using the leaking tank report it to the NJDEP because they are not allowed to receive any fuel oil and the oil in the tank must be immediately removed to prevent further damage to the environment. If they cannot receive oil there would be no way to heat the house and they would not be able to sell it.