All Forum Posts by: Lawrence P. Schnapf

derreck wells- when you say that MA  law provides that owner cannot rent to families with kids under 6 unless you have a Lead Certificate on file, do you  mean "lead-free" certificate? That would indeed be significantly stricter than other state or federal lead paint programs. For example, NYC does require lead free spaces for day care facilities but not residential properties...though building owners must abate any "lead hazards" (e.g., peeling paint)

To certify a home as being lead free, generally need to do an XRF inspection as opposed to swab tests. If there is lead paint, generally have to provide notice to tenants and follow certain workpractices when disturbing painted surfaces. You dont have to remove LBP but make sure it remains in good condition. Certainly abating the friction surfaces are a prudent measure to minimize future costs.  

I checked the RIDEM regs and residential tanks of less than 1,100 gallons in capacity are indeed unregulated (not surprising). In such cases, the local fire marshalls may have authority. some jurisidictions require tanks to be cleaned out and filled with sand or other inert substance. some require sampling. you can check with the local fire marshall without identifying the house.

Again, you should find out why the tank is not used. if its because the seller no longer occupies the house, then the tank may still be able to be used. sometimes, owners decide to put a tank in the basement. you should find out if it is truly an abandoned tank or just temporarily inactive because the seller is not using the house....  

@ David M.

- EPA does not regulate home heating oil tanks. they are exempt from federal regulation. Several states including NJ regulate such tanks but they usually have minimum size to be regulated. 

Yes, I have been involved in some OUTLIER situations where there has been significant contamination from home heating oil tanks but those are fairly rare and usually involved diesel fuel with pressurized piping. It is unlikely that there will be significant costs where groundwater is fairly deep and the tank stored no. 6 fuel oil.

There is some fear mongering going on this post. One should not make sweeping assertions based on some anecdotal accounts.

soil samples can be collected from around the tank while it is in place. this can be a good indicator if tanks have any significant contamination especially where fuel oil has been stored since it tends not to migrate very far. Moreover, one can put a dipstick in the tank coated with a water-sensitive paste to see if there is water in the tank. there is some condensation that is normal but if there is alot of water in the tank, it means the tanks contents could have leaked out.

As for lenders, there is so much capital floating around that a buyer can find a lender who will be willing to lend on an otherwise innocuous looking tank. given how suburban homes are red hot right now, I'm sure there are lenders would be willing to loan against the house. Unregulated tanks do not have to be removed and in a competitive market, lenders will not want to impose costs on a borrower that would make then uncompetitive. they make $$ making loans, not turning them down. 

Seller financing does not work if the seller's principal asset is her home. 

I suggest you get some facts. For example, why was the tank taken out of service? was it because the homeowner switched to another source of heating and cooling? did the seller have problems with the heating system (suggesting there may be water in the fuel which could suggest a leak). 

I've been an environmental lawyer for 35 years. I've seen it all. get some facts to help you make an informed decision. then talk to your bank. Or pick a house that does not use heating oil. 

or he can get approval from seller to do some sampling to see if the tank has impacted the soil. if not, that should assuage most lenders and he could simply fill the tank with sand unless it is regulated....

well, you can wait to see what your lender says or pro-actively collect some soil samples from around the inactive tank.  

if they are not working for the lender, then they dont know what the lender will say. as i said, lenders have different risk tolerances. they also have an incentive to recommend that the tank be taken through closure. have you discussed with the lender? 

is the environmental consultant working for the bank? 

different banks have different risk thresholds. if the state has a real property disclosure form requirement, then seller would be required to disclose in the future. sometimes tanks can be closed in place especially if the state does not regulate the heating oil tank (depends on size) and its close to house(basically fill with sand). but you can do sampling to show that the tank has not impacted the property. That could assuage lender concerns especially if tank is now empty.

I'm an environmental lawyer and seen lots of these. the costs vary depending if the tank leaked and contaminated soil or groundwater. a small tank with just some surficial or shallow soil contamination from overfills can costs $10K-$20K. if there is extensive soil contamination, the costs can be double, if groundwater is impacted, you could face much higher costs. i would not accept an offer until you have opportunity to take samples to see how extensive contamination.