Oil Tank Found During a Sale: Questions to Ask Your Attorney

We are not lawyers and this is not legal advice. But we see the same situation often: a tank is found during a sale and everyone starts talking at once. A short list of questions, taken to your real estate attorney, keeps the conversation useful.

Facts to bring

• The sweep report and any photos.
• Any exploratory dig result.
• The seller’s disclosure statement.
• Any permits, removal records or No Further Action letter.
• Any sign of a leak you have seen. See Signs Your Heating Oil Tank May Be Leaking.

For buyers

• What are my options under the contract: remove the tank before closing, adjust the price, extend the inspection period, or cancel?
• Who pays for removal and for any cleanup if oil is found?
• What should the contract say about the tank, about testing, and about who is responsible if a leak is found after closing?
• Do I need documents such as a No Further Action letter before closing? See What Is a No Further Action Letter?.
• What does the seller’s disclosure say, and what did the seller know?

For sellers

• What do I need to disclose? The state’s instruction sheet says sellers must disclose known material defects even if the form does not ask. See Selling a Home With an Oil Tank in NJ.
• Is it better to remove the tank before listing?
• How do I document the work for a buyer?
• Who should be on site for the removal, and who should keep the paperwork?

For both

• Is the contractor certified? Removal of an underground tank requires a closure-certified individual working for a certified firm. See Who Can Remove an Underground Oil Tank in NJ?.
• Does the contract include a maximum price, a time frame and a clear scope? See What Should Be in an Oil Tank Removal Contract in NJ?.
• Have we told the insurer? See Does Homeowners Insurance Cover Oil Tank Removal in NJ?.

What the state says

The NJDEP says there is no requirement to remove a residential tank when there is no sign of a discharge, and that real estate professionals often recommend removal at sale. See Is Oil Tank Removal Required in NJ?.

The practical side

A clear sweep report early in the process gives your attorney something concrete to work with. Call Oil Tank Scan NJ at 732-673-1584 or see our page for real estate agents.