|
|
1-888-614-4800
 
|
About Us |
Contact Us |
FAQ |
|
Straight Talk About Abandoned
In-Ground Oil Tank Removal
ONE OF THE MOST FREQUENTLY ASKED QUESTIONS BY A NEW HOME
BUYER IS, “HOW DO I KNOW IF THERE IS AN ABANDONED OIL TANK
ON THE PREMISES?’’
As an experienced home inspector, a licensed real estate
appraiser and a real estate investor, I give the following
advice:
(A) To really be sure there isn’t an in-ground oil tank, one
must hire a professional with a special metal detector to
search the property. This search costs about $250.00. But
before spending any money on such a search, I suggest that
the buyer first have a complete home and termite inspection.
If the house is not acceptable and the purchase is
terminated, the buyer could save the $250.00 tank search.
(B) Before starting the home inspection, ask the inspector
to examine the grounds close to the house for any signs of
an in-ground tank. Even though an in-ground tank is outside
the scope of the home inspection, if the inspector sees
signs of an in-ground tank, a courtesy report can be entered
into the report and save the buyer the $250.00 search fee.
Many times there are tell-tale signs of an in-ground oil
tank such as a visible vent and/or filler pipes sticking up
through the ground from the tank. Also, in the basement
there may be disconnected oil lines coming through the
foundation wall which were the feed lines from a one time
in-ground oil tank. Another sign is a concrete channel that
had been cut into the basement floor that leads to the
furnace area. All oil lines running to a furnace must be
covered by concrete for safety reasons. Most times when the
lines are removed and the channel filled, a different
colored fill concrete is a sure sign of a one time oil tank.
Any of these signs is a good indication of a tank that has
been removed or, there is still a tank in the ground. An
almost sure sign that there is a tank is when a filler pipe
is found in ground.
WE FOUND AN IN-GROUND TANK, NOW WHAT?
RULE ONE, under no condition purchase the house, no matter
how “good the deal is” until the tank and ground are tested
for any environmental contamination. The tank could have
been abandoned many years ago with a couple hundred gallons
of oil still in the tank. That oil may have leaked out over
the years and contaminated the ground. A serious
environmental condition is something you don’t need to
inherit with the purchase. If an in-ground tank is
discovered, notify your attorney immediately about the tank
and have him ask the seller to provide the E. P. A.
certification that the tank has been properly
decommissioned.
WHAT IF THE SELLER SAYS THAT HE BOUGHT THE HOUSE “AS IS”,
HE
DIDN’T KNOW THERE WAS IN-GROUND TANK AND HE’S NOT PAYING FOR
ANY TANK TESTING.
Well, because he bought the house “as is” doesn’t make the
problem acceptable. Now the buyer has a decision to make,
either walk away and look for another house or pay for the
tank and ground test. If I really wanted the house, I
personally would pay for the tank and ground test. However,
under no circumstances would I purchase a property with an
untested oil tank. At this point I must give the reader
another tip. If you have to pay for the tank and ground
test, make sure you hire a reputable company to do the
testing. A word of caution, the job is too important to hire
a company based on price alone. Make sure the testing
company has all the latest high-tech testing equipment.
THE SELLER SAYS HE DID HAVE AN IN-GROUND TANK BUT HAD IT
REMOVED OR FILLED WITH SAND.
Your attorney should ask the seller for the township for
certification that the tank was environmentally properly
filled with sand or removed. One cannot just remove a tank
or fill it with sand without the proper documentation from
the NJDEP. These papers will be filed with the township.
WHAT IF THE SELLER SAYS THE TANK WAS REMOVED YEARS AGO
BEFORE THE NJDEP DOCUMENTATION WAS REQUIRED.
(A) Ask where the tank was located. If you can find the old
location, I suggest taking a ground contamination test in
the area. Some would say at this point, “Aren’t you going a
little too far with this testing thing?” With the tank gone
you are probably safe to say that no further action is
necessary but if you ever had any dealings with MURPHY’S
LAW, you won’t hesitate to test the ground for
contamination. (MURPHY’S LAW BEING - IF IT CAN HAPPEN IT
WILL HAPPEN) By testing the ground you will know for sure if
there is a contamination problem.
A TRUE STORY
I was inspecting a small house that seemed like a nice clean
little house. When I got to the basement area, I detected a
faint odor of oil, the type of oil used as fuel. The
basement also had a small crawl space area with a dirt floor
where a fuel storage tank was located. I crawled into the
space to examine the tank and found a very slow leak. The
leak was so small that one could not even see a drop forming
on the tank. There wasn’t any big oil spot under the tank,
just a little spot about 4 inches in diameter. Knowing the
danger of oil contamination, I strongly urged the buyer not
to purchase the house until the ground under the oil tank,
in a tight crawl space, was tested for contamination.
About a month later I received a call from the same buyer
requesting another home inspection on a different house.
When I asked her why she was not buying the first house, she
said forget it. The house can’t be sold. She said that the
buyer had the ground tested for contamination and it had
serious oil contamination. She went on to tell me that the
little leak has caused $65,000.00 worth of contamination.
The EPA was now involved in the clean up and the house
cannot be sold.
THE SELLER SAYS HE HAS INSURANCE ON THE TANK THAT CAN BE
TRANSFERRED TO THE NEW BUYER.
MAKE SURE the insurance policy covers ground contamination.
Many insurance policies only cover the tank for a leak. Have
your attorney go over the insurance policy thoroughly. I
would also suggest that you call the insurance company and
have them verify that ground contamination is covered. I
have yet to know of an insurance company that is in business
to pay claims.
TO SUM UP –WHEN YOU ARE BUYING A HOUSE WITH AN IN-GROUND
OIL TANK BE CAUTIOUS.
(A) If there is a functioning in-ground tank, test the tank
for leaks and the ground for contamination.
(B) If there is an abandoned in-ground tank, test the ground
for contamination.
Article Copyrighted by G. Warren Inc. 2004 |
|
Straight Talk About
Abandoned
In-ground Oil Tanks |
Article by G. Warren
G. Warren Inc. NJ Home Inspection
(908) 757-3400
S. Plainfield , N.J.
|
ONE
OF THE MOST FREQUENTLY ASKED QUESTIONS BY A NEW HOME BUYER IS,
“HOW DO I KNOW IF THERE IS AN ABANDONED OIL TANK ON THE
PREMISES?’’
As an experienced home inspector, a licensed real estate
appraiser and a real estate investor, I give the following
advice:
(A) To really be sure there isn’t an in-ground oil tank, one
must hire a professional with a special metal detector to search
the property. This search costs about $250.00. But before
spending any money on such a search, I suggest that the buyer
first have a complete home and termite inspection. If the house
is not acceptable and the purchase is terminated, the buyer
could save the $250.00 tank search.
(B) Before starting the home inspection, ask the inspector to
examine the grounds close to the house for any signs of an
in-ground tank. Even though an in-ground tank is outside the
scope of the home inspection, if the inspector sees signs of an
in-ground tank, a courtesy report can be entered into the report
and save the buyer the $250.00 search fee. Many times there are
tell-tale signs of an in-ground oil tank such as a visible vent
and/or filler pipes sticking up through the ground from the
tank. Also, in the basement there may be disconnected oil lines
coming through the foundation wall which were the feed lines
from a one time in-ground oil tank. Another sign is a concrete
channel that had been cut into the basement floor that leads to
the furnace area. All oil lines running to a furnace must be
covered by concrete for safety reasons. Most times when the
lines are removed and the channel filled, a different colored
fill concrete is a sure sign of a one time oil tank. Any of
these signs is a good indication of a tank that has been removed
or, there is still a tank in the ground. An almost sure sign
that there is a tank is when a filler pipe is found in ground.
WE FOUND AN IN-GROUND TANK, NOW WHAT?
RULE ONE, under no condition purchase the house, no matter how
“good the deal is” until the tank and ground are tested for any
environmental contamination. The tank could have been abandoned
many years ago with a couple hundred gallons of oil still in the
tank. That oil may have leaked out over the years and
contaminated the ground. A serious environmental condition is
something you don’t need to inherit with the purchase. If an
in-ground tank is discovered, notify your attorney immediately
about the tank and have him ask the seller to provide the E. P.
A. certification that the tank has been properly decommissioned.
WHAT IF THE SELLER SAYS THAT HE BOUGHT
THE HOUSE “AS IS”, HE
DIDN’T KNOW THERE WAS IN-GROUND TANK AND HE’S NOT PAYING FOR ANY
TANK TESTING.
Well, because he bought the house “as is” doesn’t make the
problem acceptable. Now the buyer has a decision to make, either
walk away and look for another house or pay for the tank and
ground test. If I really wanted the house, I personally would
pay for the tank and ground test. However, under no
circumstances would I purchase a property with an untested oil
tank. At this point I must give the reader another tip. If you
have to pay for the tank and ground test, make sure you hire a
reputable company to do the testing. A word of caution, the job
is too important to hire a company based on price alone. Make
sure the testing company has all the latest high-tech testing
equipment.
THE SELLER SAYS HE DID HAVE AN
IN-GROUND TANK BUT HAD IT REMOVED OR FILLED WITH SAND.
Your attorney should ask the seller for the township for
certification that the tank was environmentally properly filled
with sand or removed. One cannot just remove a tank or fill it
with sand without the proper documentation from the NJDEP. These
papers will be filed with the township.
WHAT IF THE SELLER SAYS THE TANK WAS
REMOVED YEARS AGO BEFORE THE NJDEP DOCUMENTATION WAS REQUIRED.
(A) Ask where the tank was located. If you can find the old
location, I suggest taking a ground contamination test in the
area. Some would say at this point, “Aren’t you going a little
too far with this testing thing?” With the tank gone you are
probably safe to say that no further action is necessary but if
you ever had any dealings with MURPHY’S LAW, you won’t hesitate
to test the ground for contamination. (MURPHY’S LAW BEING - IF
IT CAN HAPPEN IT WILL HAPPEN) By testing the ground you will
know for sure if there is a contamination problem.
A TRUE STORY
I was inspecting a small house that seemed like a nice clean
little house. When I got to the basement area, I detected a
faint odor of oil, the type of oil used as fuel. The basement
also had a small crawl space area with a dirt floor where a fuel
storage tank was located. I crawled into the space to examine
the tank and found a very slow leak. The leak was so small that
one could not even see a drop forming on the tank. There wasn’t
any big oil spot under the tank, just a little spot about 4
inches in diameter. Knowing the danger of oil contamination, I
strongly urged the buyer not to purchase the house until the
ground under the oil tank, in a tight crawl space, was tested
for contamination.
About a month later I received a call from the same buyer
requesting another home inspection on a different house. When I
asked her why she was not buying the first house, she said
forget it. The house can’t be sold. She said that the buyer had
the ground tested for contamination and it had serious oil
contamination. She went on to tell me that the little leak has
caused $65,000.00 worth of contamination. The EPA was now
involved in the clean up and the house cannot be sold.
THE SELLER SAYS HE HAS INSURANCE ON THE
TANK THAT CAN BE TRANSFERRED TO THE NEW BUYER.
MAKE SURE the insurance policy covers ground contamination. Many
insurance policies only cover the tank for a leak. Have your
attorney go over the insurance policy thoroughly. I would also
suggest that you call the insurance company and have them verify
that ground contamination is covered. I have yet to know of an
insurance company that is in business to pay claims.
TO SUM UP –WHEN YOU ARE BUYING A HOUSE
WITH AN IN-GROUND OIL TANK BE CAUTIOUS.
(A) If there is a functioning in-ground tank, test the tank for
leaks and the ground for contamination.
(B) If there is an abandoned in-ground tank, test the ground for
contamination.
Article Copyrighted by G. Warren Inc. 2004 |
|
|
|
