Advice re: oil tank in NY state

[Megan S.]

Hi everyone!

I've been negotiating the purchase of a triplex in upstate NY (Hudson Valley) and we're soooo close to coming to an agreement on the terms, but a half-buried oil tank is throwing a wrench in things. I'd love your thoughts!

Here's the deal:

There is a small half-buried oil tank under the front porch of the home that has not been used for decades. The current owner didn't do his due diligence on the tank when he bought the place, so there's no documentation on it. He has offered to have the tank removed, but is unwilling to have the ground tested to confirm there has been no contamination (he plans to "take a look at the soil" after removing the tank, and has offered to let me do the same). He says that in the unlikely event there has been some leakage, he will "dig out some of the soil and replace it."

I understand his position - if he gets the soil tested and there's been contamination, he will be legally required to have it remediated at a potentially large expense. With no test, there's no legal requirement to do *anything.* 

But obviously, my *** is on the line if I buy the place without getting the ground tested. Once the tank is removed, it won't be readily apparent that there ever was a tank in the ground, but I'm really not interested in lying to future prospective buyers.

If I don't buy the place, I'm guessing the owner will remove the tank and then sell to someone else who isn't savvy enough (or doesn't care) to ask about any previously removed oil tanks.

What would you do?

[Thomas S.]

Assuming it has not been used for decades I would have no concerns. I would have him remove the tank, assuming no permit is required to do so, and forget it was ever there assuming it is a good deal. I would do a personal sniff test and leave it at that. No oil smell no worries. I would be more than comfortable and confident there would be no future issues. Not a problem for me as a investor as the chances of future issues is extremely low. Once that is behind me its out of sight out of mind.

Based on your hesitation I would advise you walk away from the deal. If your concerns and standards are such then you need to seek out real estate that has no adverse conditions.