Laws against not allowing septic and underground oil tank tests

[Scott Forgue]

Does anyone know if there are there any laws or if it is illegal for a bank not allowing a test on a septic system or on an underground oil tank or the grounds? "Seller will not allow buyer to have underground oil storage tank be inspected, Seller will not allow buyer to have grounds tested around underground oil storage tank, Seller will not allow the septic system to be inspected or tested."

[William Jenkins]

Call the state department of natural resources. Give them the property address and they will likely be able to give you information on if the tank is in compliance or not. They should also be able to tell you if there are any current remediation issues at the property as well. If they report no problems then you should feel good, but it is by no means a guarantee that the site is clean.

The seller doesn't want an inspection because they want to absolve themselves of knowing if there is an issue.

As an FYI... If this is commercial then no bank will finance it without a clean phase 1 or phase 2. So that may kill the deal right there if you are financing.

If you pay cash and there is an issue, then everything you have in the property could be at stake if something is discovered in the future.

Under no circumstances should you close on the property in your own name or in an entity with other property. You will want to make sure the property is in a separate entity all by itself.