So you are obviously here because you have a buried heating oil tank, are looking at buying a property with a buried tank or a real estate agent that is dealing with a buried tank during a property transaction. We will talk about the most common question we get here at GreenTrax, when we first get called by a buyer, seller or agent. “Can you test this tank”.
(Disclaimer – we are only speaking of buried oil tanks in Maryland. Every state is different and has different rules and Greentrax only services buried oil tanks in MD.)
We will go through the super short version at the top with some details down below.
- Can the Underground Storage Tank(UST) be tested? = YES
- Should you spend money on a tank test? = NO
- How old is this buried tank? = Just as old as the house. (or if the house is 100+ yrs old, the tank is still likely 30, 40 or 50 + yrs old)
- What is the lifespan of a UST? = 20 years
- What do you recommend doing instead of a test? = Properly abandon or remove the tank.
- Isn’t it on the buyer to test the tank? = NO.
- Can I sell the house as-is and leave the tank? = Maybe, but most buyers or the buyer’s agents will & SHOULD require tank be abandoned or removed before closing. ( because its way past its useful life )
- Can the buyer’s Mortgage company, bank, lender OR Home Insurance company require that the tank be dealt with PRIOR to closing? = ABSOLUTELY. Many banks and insurance companies can Prevent the buyer from closing on the house until the buried tank is properly abandoned or removed.
- Can I just dump sand in the tank? = NO!!!
- Can Greentrax just do a soil test? = YES, but we don’t recommend that. (more on this below)
- Why don’t you recommend a tank test? = Waste of money, on a tank that is in all likelihood, double or triple its useful like. Plus too many false positives or false negatives for these very old, bare steel, rusted, corroded tanks that have a thick layer of sludge (think of a thick mud) in the bottom of the tank.
- Can the buyer testing the tank or the soil cause the seller any problems? = YES
MORE DETAILS:
Testing – Testing these old UST’s are a waste of money, for all parties involved. Think about if the roof shingles on the house were 50 or 60 years old, but were rated for 20 years. Everyone involved in the real estate transaction would insist on a new roof being installed before the house goes to settlement. The tank is the same way, but you cannot see when the tank is leaking, like you can with a roof leak. We don’t recommend the buyer doing a tank test(OR SOIL TEST) because tank tests on these old buried tanks are not reliable enough. Greentrax has removed tanks that have passed tests that have been leaking and have removed tanks that failed tests that were not leaking. Time is the biggest problem when selling a house. Closings happen in 30 – 45 days OR LESS. But by the time the tank company is involved, some time has already been burned. If you waste time trying to test the tank, then if the underwriter for the loan requires the tank to be removed/abandoned prior to closing then you have wasted money. Or if the tank fails the test, the process for tank removal & soil remediation takes additional time to complete, plus the lab testing & completing the required closure report you will need for closing takes time.(this process takes time, BUT can be rushed, but that costs additional money)
CUT TO THE CHASE = Even if the tank(or the soil) “passes” a test, that you have had someone do, and you buy the house…..then what? The can has been kicked down the road as far as possible, so its time to remove or abandon the tank after you close on the house. So if you know it needs done anyway, why spend money on the test? (Call Greentrax office to discuss your scenario, and we can tell you costs to expect for a clean tank and a leaking tank, how long this process takes etc.
Age of tank = 99% of the residential buried tanks are original to the house. If the tank had been replaced, it most likely would have been replaced with an aboveground tank.
If the seller (or if the person YOU bought the house from years ago) tells you the tank was abandoned in place, BUT they don’t have any paperwork. (we have heard this story hundreds of times) This is never the case. Paperwork in the form of pictures, lab tests and details is what matters, not just a hand written receipt of something that was done. There are things Greentrax looks at on a property to see if the tank may have been dealt with or not.
Why you cannot just dump sand in the tank? First the Maryland Dept. of the Environment REQUIRES the tank be cleaned out PRIOR to filling the tank, and the soil MUST be sampled. AND the tank must be 100% filled. So if the homeowner or a plumber or HVAC guy, etc. just dump some sand in the tank through the fill pipe, it just mixes with all the remaining oil and sludge in the tank. (Even if they say the tank was run empty and burned all the oil, its not empty. You cannot clean the sludge out of a 5, 6 or 11 feet long tank through a 2 inch diameter fill pipe.) Then you dump sand in it and it creates a Pyramid effect in the tank until the fill pipe is full. But in actuality, the tank is only 30% -40% filled with sand. So whatever oil, sludge or whatever is left in the tank can and will still eventually leak out.
BUYERS CAUSE SELLERS PROBLEMS – Lets say the buyer ignores our recommendations above and tests the tank or the soil. Then it fails the test. Ok now what? How is that a problem for the seller. Well according to the rules, once it fails, the MDE must be notified and the tank is supposed to be pumped out and emptied right away. The seller has to pay to have the tank pumped out. (but what happens if its middle of winter and you need heat or hot water?) Then you have to have a new aboveground tank or a temp tank installed on an emergency basis, which will cost more money in the long run. Or what if the buyer walks away from the deal? Now the seller HAS to remove the tank, AND disclose to the new prospective buyer, that the tank leaked. And with all the other stresses of selling your home, and maybe buying a new home, packing, moving etc etc. This is the last thing you want to deal with.
THAT IS WHY ITS BEST TO PROPERLY DEAL WITH THE UNDERGROUND HEATING OIL TANK & INSTALL A NEW ABOVEGROND TANK, BEFORE YOU EVEN LIST THE HOUSE FOR SALE. So you know that part is done and you control the costs and decisions.
As always, Call Greentrax for more details and pricing. We are here to help. 410-439-1085
