​Oil tanks – A big ticket item that NEEDS to be checked in NJ

First of all, what is an oil tank? An oil tank is basically what it says. It is a tank of oil used to heat a home. It could be above ground in the basement or underground in the front yard, under concrete, or under a driveway. Years ago, oil tanks were what was typically used to heat most homes in New Jersey. However, there have been a lot of negative repercussions that homeowners or future homeowners now must be aware of.

Underground oil tanks are unregulated by federal and state laws and consequently, these tanks are a potential source of ground and surface water pollution. Home heating oil contains several substances that are known carcinogens. If a tank starts leaking, ground water pollution and vapor hazards could occur. The lack of construction, installation, monitoring, and closure controls for the unregulated underground storage tank increases the potential for these problems to occur. Without proper monitoring and testing of the tank and piping, leakage may go undetected until a major and costly problem has occurred.

Now, before I scare you away from homes that may have underground oil tanks, there are several solutions that may be able to resolve this issue if you find out the home you live in or the home you plan to purchase has an underground oil tank. First of all, if you are the home purchaser, you can request an oil tank sweep during your inspection period of purchasing a home. The oil tank sweep will ensure if you do or do not have an oil tank on the premises. If there is a tank as shown on the inspection or from noticeable landmarks such as a valve on the ground, then you can get a soil sample test done. The soil sample test will be used to see if the soil around the tank has been contaminated. If it has, then you can predict that there is a leak.

If there is no leak, then you can negotiate on who will remove the tank (the seller or buyer at their cost). One thing I recommend, DO NOT, I repeat, DO NOT settle for a tank to be filled with sand or another alternative. At the moment, that may seem ok, but later down the road if you plan to sell your home, some lenders require the tank to be removed no matter what. Therefore, it is easier to get it out of the way now than later.

If there is a leak, do not head for the hills immediately, ask to see how bad the damage is on the property. Sometimes, the remediation is not a significant amount and the seller may be able to foot the bill. Also, sometimes, the homeowner’s insurance that the seller has may be willing to pay for it. (Not always, but I have seen it happen.) If the seller refuses to pay for the damages, then I would recommend to walk away from the deal. The headache is far worse than simply finding a different property. Not to mention, in some extreme cases, the oil tank leak could cost in the $100k range or more. So please, if you are buying a house, ALWAYS get an oil tank sweep. It may cost you around $250 now, but it could save you thousands!