As Good As SOLD

Tanks a lot

August 20th, 2007

If you have an oil furnace there is inevitably an oil tank somewhere on — or under — your property. No comprehensive record of their whereabouts exists, and their existence can become an issue at house sale time. Once discovered, usually at inspection or by metal detection scan, they usually lead to remediation prior to the property’s transfer to the new owner.

Most municipalities will insist abandoned oil tanks be rendered inert or removed outright once found. Cost of so doing is generally $1000-$1500; however, a long-abandoned tank may contain contaminated water which will cost an additional $1 per litre to dispose of.

Replacing tanks before they leak has a reasonable cost when contrasted against the environmental and financial expense of a severe leak. And even though the installation of underground tanks is a thing of the past, determining the age of an above ground tank is problematic. Your insurer will want to know it is twenty years or less or they might not underwrite it, or at a minimum will ask you to waive your ‘environmental hazards’ coverage — not prudent on your part, given the potential liability involved.

Any house 1970’s or older should have the lot scanned by a tank service company for the existence of an abandoned tank. If found, have it removed. Given the liability involved, it’s a reasonable thing to do.

Entry Filed under: Real Estate Matters