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Those are proposed new rules addressing how to deal with a known oil leak. Were the rules actually implemented? Also, we don't have a known leak here, just a known oil tank. Also, that info was posted by a tank scan company that's motivated to scare readers.
the seller is not going to remove the tank, they'd be subject to a soil test and that would be a no go. Ask them to legally abandon it, there are companies who do this and file the paperwork with the board of health. If they won't ask for a credit to get it done.
the seller is not going to remove the tank, they'd be subject to a soil test and that would be a no go. Ask them to legally abandon it, there are companies who do this and file the paperwork with the board of health. If they won't ask for a credit to get it done.
Although a credit or an escrowed amount might be okay to cover a number of situations, I wouldn't recommend that it be done in the case of an underground storage tank. Until they unearth the tank, they will never be fully sure of the conditions under the ground. If leakage had occurred, yet was undetected, the expense of removing the tank could increase significantly. In this instance, the Seller should be held to the responsibility of removing the tank prior to closing.
the seller is not going to remove the tank, they'd be subject to a soil test and that would be a no go. Ask them to legally abandon it, there are companies who do this and file the paperwork with the board of health. If they won't ask for a credit to get it done.
Nope. The OP should not buy the condo with the oil tank in place under any circumstances unless there is tank and HOA insurance that will cover any leakage.
Get the EPA involved...........underground oil/fuel tanks that may have or have leaked are a death knell for the owner...........As far as I know they were all suppossed to be dug up and eradicated back in the 80's.......
Not even close. I have one in use today. Millions are.
But the owner (the seller) of the condo is not responsible for dealing with the tank and should NOT be involved in the issue. The HOA is responsible for dealing with the tank.
To look at this from a different perspective, what if you have a buyer for your house but a giant sinkhole materializes in the street in front of your house? Your buyer reasonably wants the sinkhole fixed before closing. But it's the town's problem. You can't fix it, you can't be held responsible for it, and the buyer can't expect you to put money in escrow to fix it.
Also, there is no possible way to know how much the cost of remediation could be. Say it's $200,000 - not an unreasonable estimate. The seller would be responsible for 1/3 of that. Will the seller even have enough money from the proceeds of the sale to put that much in escrow?
If the OP can't work out a rental agreement with the seller, I think he should run far, far away.
That would be IF, the tank is used for the heating of others in the units. I did not read that, nor did I read that the tank is leaking as others have suggested might be the case. So, unless there are other facts that the OP has not mentioned yet, my advice still stands. I would have the owners plan to abandon the tank and I would get some estimates for my own information and secure enough in escrow to have it removed. They MUST begin the effort as part of the sales contract or no dice.
That would be IF, the tank is used for the heating of others in the units. I did not read that, nor did I read that the tank is leaking as others have suggested might be the case. So, unless there are other facts that the OP has not mentioned yet, my advice still stands. I would have the owners plan to abandon the tank and I would get some estimates for my own information and secure enough in escrow to have it removed. They MUST begin the effort as part of the sales contract or no dice.
True, it's not 100% clear that it's a common tank, but the OP did say this:
Quote:
It is a 3 unit condo not really a complex. Once my inspector found out oil tank the seller worked with the HOA to plan to remove it since it is in everyone's best interest.
Also, the failure to remove the oil tank would definitely be grounds for cancelling the contract if the owner were the responsible party, so I made the assumption that the HOA is responsible and that's why the contract can't be cancelled. I would feel even more strongly that the OP should bail if the seller is responsible.
Nobody said the tank is leaking, but there's no way to know until you pull the tank. Soil tests around the perimeter of the tank will not detect leaks from the bottom of the tank going straight down into the soil.
This is my neighbor's house during the remediation of an oil tank that had leaked before being legally abandoned. It cost $170,000, thankfully mostly covered by insurance. I know of several similar cases in my town. (It's a hot topic on the local message board.) Most (all?) homeowner's policies specifically exclude oil tank coverage these days. Even though these cases are extreme, why would anyone buy a property that could leave them liable for something like this?
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