anyone priced pre buy propane yet, for 2017 winter?

[Valerie C]

Fuel prorations (for oil or propane) is USUALLY handled outside of closing, NOT on the ALTA (settlement) statement.

If someone is purchasing a house that uses propane, they usually have quite a long period of time (30-60 days from contract to close is typical) in which to call around, get an idea of prices, and decide how they want to handle the fuel remaining in the tank. If they want to keep the company, they need to contact the company to set up an account, and within a few days of the closing, a company representative will check the reading on the gauge(s) to determine how many gallons remain (a full 120 gallon tank has approx 96 gallons of LP, as they only fill to 80% of capacity to allow for expansion). They will also schedule an appointment to do a safety check,etc. There may or may not be a charge for this appointment.

The Buyer can either pay the Seller directly for the gallons that they already paid for using TODAY'S PRICE) OR the propane company will credit the Seller back for those gallons (using the price that they paid).

One benefit to using a different company OR paying the fuel company directly instead of paying the Seller is that companies usually have a "Welcome to our company" fuel discount on the first delivery. If they've set up an account but then don't call for a delivery for months down the road, there's a good chance that that discount will have been forgotten about....

IF this is an underground propane tank, be aware that there may be charges for the excavation to remove the tank. I'm surprised (but probably shouldn't be) that this wasn't covered in detail at some point between the time you made an offer and the day of close as prorations are part of the standard NH P&S... Most transactions have 2 real estate agents (one for the buyer side, one for the seller side) and the title company or closing attorney. NOBODY involved here ever talked about fuel prorations??

Originally Posted by sb2017

Wow. My house I just bought has a 500 gallon tank owned by Amerigas, which is full (80%). I was told I have to set up an account, pay to get a leak check inspection, pay a rental fee, and sign a contract for a 3-year term. The rates they quoted me are an initial first-fill-only $1.70 per gallon and then $2.29 IF I get 800 or more gallons. I was told if I wanted to change companies (multiple people have recommended Eastern), I still have to go through all those hoops and THEN need to pay a "restock fee" per gallon to empty it for them to come take my full tank away so I can get another company. Geesh. I was told if I do not set up an account, Amerigas is very likely to lock the tank and I won't be able to use the propane in it.

Neither Amerigas or Eastern said anything of one company buying out the tank from the other company. At this point, I guess I am going to have to jump through Amerigas' hoops and run through the 400 gallons of propane already in my tank and then pay whatever cancellation fees I'm stuck with to move service to Eastern.