Hi all! Can someone please shed some light on the topic of underground oil tanks when purchasing a property? Should oil tanks always be pulled regardless of condition? How does this impact the purchase price negotiations and closing timeframe? What are the estimated costs of pulling the tank? Is it just as effective to empty the tank and leave it filled with sand? Thank you!
When making offers to buy a property in the additional terms area of the contract I always put, subject to:
Oil Tank Sweeps and
Once the property is under contract and we move out of attorney review i will then hire an oil tank company to do the sweep. If a tank is found i request for permission to get the tank pulled before closing. If the seller denies I bail out of contract. If the seller gives me permission to pull that means they have just given me permission to pull the tank regardless of how long it takes to do so. << This means
f it takes 2 months, they are gonna have to wait 2 months.
During the pull, if the tank is found to be leaking I will request the seller take care of remediation. If the seller denies and the work is massive I bail out of contract. It is a standard procedure that I pull the bank before ever closing as a leaking tank can cost 5k to 200k to take care of. You don't want to find out after you take ownership.
- It typically takes 2 months to get a tank pulled.
- The cost is typically 2k for a small tank and 3k for a big one. << I forgot the exact sizes but I can get you this detail shortly.
- I use to think sandfill was ok but its not for all banks. This being so, these days I get them pulled no matter what.
This reply was modified 1 week, 4 days ago by nicktang.