buried oil tank: buy or run away?

[Rosa Sugo-Golden]

I found a buried oil tank. The owner didnt say nothing about it Does someone has experience with this? what are the potential implications ? So far n0body complaint about it but is a great deal under 200

[Lawrence P. Schnapf]

I'm am environmental lawyer and while not admitted in Wisconsin, the following may be helpful: 

1. Home Heating Oil tanks are not regulated (e.g., required to have permit) 

2. Wisconsin has a real estate condition report form that is supposed to be prepared by the seller. Question C8 specifically asks about petroleum storage tanks.

3. If you are under contract, you should have tank tested to see if it has leaked. collect soil samples around tank. see if tank as water in it. you can use that as a basis to establish an escrow or holdback (usually 125% of the estimate to play it safe.) 

4.  Wisconsin requires sellers to provide property disclosure report. storage tanks are included in the form. A buyer who does not receive a fully completed copy of this report within 10 days after the acceptance of the contract of sale or option contract for the above-described real property has the right to rescind that contract.

5. If the seller did not disclose the existence of the tank, you might have a claim for misrepresentation or fraud.

The costs to address tanks depends on the extent of any contamination, if present. there can be limited surficial soil contamination from overfills or there can be subsurface contamination if the tank was leaking. Fortunately, heating oil tends to be denser than gasoline so that it will not migrate too far. 

since these tanks are not regulated, you are not REQUIRED to take the tank through formal closure. You could in theory simple fill it with sand. However,  if you plan to sell the property in the near future, you probably want to engage an environmental consultant so you can get closure letter from the state that would satisfy a future buyer. 

there are "war stories" about bad situations and some people claim that you cant get a mortgage with a UST. These generalized statements should not scare you. each situation is different. 

The foregoing is not legal advice. you should consultant with a local attorney if you want specific legal advice.