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If I really wanted the house and the current owner will not offer to pay for or split the cost of further investigation, I would just pay for he $1200 and know for sure what you are dealing with.
The problem is that you pay $1200, they find out what it is, and they now determine it's another $5,000 to remove or remediate it? Just like a medical test, at a minimum you should have an idea of what you'll do with the information before you have the test done.
Get the builder to open it up. Digging a 3 foot hole 3 feet deep is a couple of hundred dollars. The only thing requiring any skill will be replacing the asphalt.
If the builder won't do it then consider walking. But I really can't imagine why he would refuse.
Could it be an oil tank already filled with sand maybe? I would go with the soil testing, no oil don't worry about it. If you find contamination then the seller will need to do something about it.
From the picture, it looks like there was some sort of machinery or something mounted over the site. What are those three light brown patches on the concrete? Could they be where some sort of hold down bolt was removed or cut off? What machine uses an under ground tank? Was it a house that was there before or some small commercial building like a machine shop or something? Also looks like a half inch pipe or something going down into the underground storage tank? Seems a pretty hard thing to miss if they're claiming they did an earlier survey.
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