Selling a Home With an Oil Tank in NJ: What to Know

If your home was heated with oil at any point, expect the question of a tank to come up during a sale. Buyers’ attorneys and inspectors ask it routinely, and an unanswered question tends to slow things down.

What you have to disclose

New Jersey sellers of residential property complete a Property Condition Disclosure Statement. According to the state’s instruction sheet from the Division of Consumer Affairs, sellers must answer the required questions before the buyer is bound by a contract, answers are given to the best of the seller’s knowledge, and the seller is obligated to disclose any known material defects even if the printed form does not address them. The sheet also notes that the seller alone is the source of the information on the form.

So if you know there is a tank, or you know there was one, say so. If you do not know, finding out is better than guessing. Speak to your attorney about how to word your answers.

Why find out before you list

• A sweep gives you facts. A sweep tells you whether a tank is likely, so you are not surprised by the buyer’s inspection.
• You control the timeline. If a tank is found, you can decide how to deal with it instead of reacting to a deadline.
• Records reassure buyers. A report and any removal paperwork answer questions before they are asked.

Do you have to remove a tank?

Not necessarily. The NJDEP says that if there is no indication of a discharge, there is no state requirement that a residential tank be removed. It also says that real estate professionals often recommend removal when a home is being sold. Read Is Oil Tank Removal Required in NJ?.

If you do remove it, an underground tank must be removed by a closure-certified individual working for a closure-certified firm, and if a discharge is found, cleanup is required.

Keep the paperwork

Permits, the removal contract, soil sample results, photos and any No Further Action letter all help a buyer feel comfortable. See What Is a No Further Action Letter?.

If the buyer asks for a sweep

Offer access and cooperate. A buyer’s sweep is routine on older homes, and refusing usually raises more concern than a clean result would.

Oil Tank Scan NJ works with sellers, buyers and agents across New Jersey. Call 732-673-1584.