Environmental Hazards: In-Ground Oil Tanks

Working as a licensed real estate salesperson is not all roses and lovely drives in the country. Most of the time it is but, as we all know, some roses have thorns and this is a case history from my personal experience.

A buyer-client of mine was interested in purchasing a foreclosure. Needless to say, the property was not in the best of shape, but it had potential and my buyer wanted to pursue an offer. Because it was REO (bank owned), there was no Property Condition Disclosure Statement. However, there was a brand new oil tank in the back yard. So far, so good.

On the second visit, we noticed what looked like an oil fill valve sticking out of the front yard.

Now, oil leaks are not small potatoes. Once one is discovered, it is mandatory that the Dept. of Environmental Conservation (DEC) become involved. A case file number is assigned to the leak that must then be remediated by a licensed contractor and closed to the satisfaction of the DEC.

Back to my story. My buyer, at my advice, decided to spend the not-small amount of money needed to have the oil tank and soil tested to ascertain whether or not the tank was sound prior to making his offer.

The picture above shows the telltale fill and relief valves of an in-ground oil tank. These valves do not always protrude above the ground, are sometimes located under decks, or are otherwise hidden when they are either professionally or unprofessionally retired from use.

In-ground oil tanks are one of the most common environmental hazards encountered in our local real estate market. Caveat emptor: Let the Buyer Beware.