Discovered an Underground Oil Tank During Home Inspection

For the rental property we had under contract, we opted to go ahead and hire our own home inspector despite the property seller making available a home inspection report written by their own home inspector.

It turns out it was a worthy investment as our home inspector pointed out a number of items not documented in the inspection including evidence of an underground oil tank. We quickly confirmed there was still an underground oil tank on the property that the seller was unaware of.

The seller agreed to address the issue by hiring an environmental cleanup company to remove the tank and re-mediate the ground. It turned out the oil tank had leaked so the company needed to perform a limited site assessment including drilling a well to take ground water samples.

DescriptionCharge
Oil tank removal/Initial Abatement $10,108.21
Limited Site Assessment$4,767.00
Well Abatement$354.82
Total$15,230.03

The good news is the water/soil samples do not exceed state levels to add an addendum to the property deed. Since the seller quickly recognized they would need to address this anyway to sell the property, this issue didn't turn into a big hang up for the purchase. However I can see how oil tanks can be a major headache. In this case the seller was hit with an additional $15k in unexpected repairs to sell his property.

Related in Real Estate:

No Closing Cost Loan Example (Nov 29, 2012) I've gotten multiple requests to clarify the recent no closing cost refinance loan I just completed. Its a bit of a vague term and could be done different ways, but the end result is that there are no out of...

3.5% 30 Year Fixed No Closing Cost Refinance (Nov 27, 2012) We finally closed this week on our 3.5% 30 year fixed refinance with no closing costs (no closing costs = a credit from lender/broker large enough to offset refinance costs). It took us over 2 months (67 days from initial...

Appraisal Appeal Unsuccessful (Nov 05, 2012) Not much of a surprise, the appraiser dug in and didn't budge after we submitted our appraisal appeal: Our more favorable comparables were based on county property records. Interestingly the appraiser indicated the MLS data is generally considered more accurate...

Comments (8)


Just keep in mind that if you buy it and the EPA changes the rules in the future, you will be 100% responsible for the costs.

First sentence should read "hire", not "higher".

Well as long as we are going to point out errors: there own home inspector should be their own home inspector

Good catch! Ugh. That would have been a costly expense for you in the future.

Sounds like you got a lot of value for your own home inspection. That is great news and illustrates why you should always hire your own inspector.

How does one discover an underground oil tank during home inspection! :)

Ours missed a water leak that was outside and home warranty won't cover it since it is outside!

What is Underground Oil Tank for? Can you put it into use?

2million, a hurricane is coming your way up the East Coast. Watch out!

Post a comment

(Comment moderation enabled.)

About 2millionblog.com

A personal finance weblog of my journey to reach my goal of $2 million + the value of my primary residence.
Current Net Worth: $1,574,185

Sponsors

New Personal Finance Articles




PF Blogs