[Vin100]

Does anyone have experience with underground oil tank?
How does one get an idea if its fine or leaking. How long do they last?
We are negotiating to buy a home with an undergtound oil tank. What things should we be careful about?

[El Scorcho]

Originally Posted by Vin100

Does anyone have experience with underground oil tank?
How does one get an idea if its fine or leaking. How long do they last?
We are negotiating to buy a home with an undergtound oil tank. What things should we be careful about?

Negotiate the current owner removing the oil tank at their expense.

When I was house shopping two years ago I was told flat out by the inspector that I would not get home insurance with an underground tank.

[Cambium]

Originally Posted by Vin100

Does anyone have experience with underground oil tank?
How does one get an idea if its fine or leaking. How long do they last?
We are negotiating to buy a home with an undergtound oil tank. What things should we be careful about?

I believe you have to hire a company to come out and check and inspect underground for leaks. Have to assume some digging involved but maybe not with new technology? There's a soil test and a pressure test they can do for under $1000. Or remove it and relocate it for $2500 which might be worth it.

Have the buyer sign a statement that there are no leaks or tell him to pay for inspecting or removing.. Maybe split the cost?

I bought a house where the previous owners removed it and put a new one in the basement instead.

I wonder why did they used to put them underground? Safety? Weather?

Oh, P.S, get ready to pay for the oil that's left in it. That was a surprise to me. Had to dish out another $1500 at the closing.

[willow wind]

Yes, please do as the other poster suggested and negotiate to have the tank removed and replaced with an above ground tank- all at the seller's expense.

The underground tank should appear on the seller's disclosure form. The seller's real estate agent should have told him to be prepared to remove the tank. It won't come as a surprise to him.

[NewJeffCT]

an underground oil tank could also be an issue with financing as well - it's an environmental hazard, so some banks will steer way clear of the loan if it's a potential hazard. If you default on the loan, the bank is now stuck with a property that could require some major remediation.

agree with everybody above - have the seller remove the oil tank, and get a certification that where the tank was is not an environmental hazard (no oil leaked out of a corroded tank)

[NewJeffCT]

Originally Posted by Cambium

I believe you have to hire a company to come out and check and inspect underground for leaks. Have to assume some digging involved but maybe not with new technology? There's a soil test and a pressure test they can do for under $1000. Or remove it and relocate it for $2500 which might be worth it.

Have the buyer sign a statement that there are no leaks or tell him to pay for inspecting or removing.. Maybe split the cost?

I bought a house where the previous owners removed it and put a new one in the basement instead.

I wonder why did they used to put them underground? Safety? Weather?

Oh, P.S, get ready to pay for the oil that's left in it. That was a surprise to me. Had to dish out another $1500 at the closing.

My guess is that people though it was better to put it underground than inside the house, thinking that an oil leak outside was preferable to one inside?

[Loriact]

Steel tanks are usually good for 15 years (but could last longer).

I once called a contractor about pressure testing a 25-year-old tank, and they refused for fear that the test could cause a leak due to the tank's age. Ask the owner to have it removed with tank closure sampling done in accordance with DEEP guidelines. If it hasn't leaked yet, it doesn't mean it won't. Cleaning up oil-contaminated soil isn't cheap - never mind dealing with contaminated groundwater. Keep the tank closure report and lab data for when you sell.

[Vin100]

Thank you for your responses.
We are going to talk to the agent and owner in a couple of days. Will keep posted.

[Vin100]

Originally Posted by Cambium

I believe you have to hire a company to come out and check and inspect underground for leaks. Have to assume some digging involved but maybe not with new technology? There's a soil test and a pressure test they can do for under $1000. Or remove it and relocate it for $2500 which might be worth it.

Have the buyer sign a statement that there are no leaks or tell him to pay for inspecting or removing.. Maybe split the cost?

I bought a house where the previous owners removed it and put a new one in the basement instead.

I wonder why did they used to put them underground? Safety? Weather?

Oh, P.S, get ready to pay for the oil that's left in it. That was a surprise to me. Had to dish out another $1500 at the closing.

How do you calculate the amount of oil left in it??

[JayCT]

Originally Posted by Vin100

Does anyone have experience with underground oil tank?
How does one get an idea if its fine or leaking. How long do they last?
We are negotiating to buy a home with an undergtound oil tank. What things should we be careful about?

I know someone who had an underground tank that leaked. It cost them about $25,000 to remove it and the contaminated soil around it. Be very careful. Jay