Underground Oil Tank Removal

[Alex V.]

I have a 3 family under contract in Bloomfield, NJ. We just did a tank sweep as underground oil tanks are very common in this area for houses of that age. Sure enough the tank sweep turned up a massive underground oil tank. The report states that they found a 1k gallon tank with approximately 8 inches of fuel and 1 inch of water. Obviously this tank was never properly decommissioned. Normally I would happily negotiate a price for us dealing with it but given the size and water in the tank indicating a leak, we are prepared to walk if the seller refuses to remediate. This is the first time I'm dealing with an oil tank so I was curious what other investors experiences have been. How much has your worst case scenario cost you? What about your best case? 

[Erik Cabral]

@Alex V. I had a home under contract in Willingboro, NJ a few months ago. A tank was later found and I requested the seller remove and have the soil tested before proceeding. It took them roughly 2-3 months to remove and the soil was found to be contaminated. I immediately pulled out of the deal and asked for my earnest money deposit back. 

Personally, I do not like to take risks with underground tanks. I would have never made the offer if I had known there was an underground tank but unfortunately I didn't discover it until after the fact. The risks far outweigh the rewards when considering what you could potentially be liable for if the oil has leaked beyond the property lines.