Buying or Selling a Home With an Underground Oil Tank in Orange County, NY

By Ammar Iqbal | Real Estate Salesperson, eXp Realty

Many older homes in Orange County were heated with oil, and some of them still have, or once had, an oil tank buried in the yard. If you are buying or selling one of these homes, an underground oil tank is something to deal with early, not at the closing table. Here is what you should know.

Why buried oil tanks matter

Older underground tanks, especially bare steel ones, can rust and leak over time. A leak can contaminate soil and groundwater, and cleanup can be expensive. Lenders, insurance companies and buyers often want to know a tank's history before they move forward. If you are still learning about heating systems, start with my post on oil, propane and natural gas heat in Orange County.

Signs a home may have a buried tank

• A fill pipe or vent pipe sticking out of the ground near the house
• Oil lines coming through the basement floor or foundation wall with no tank inside
• An older home that now uses gas or propane, but was built when oil heat was common

Ask the seller directly, and review the property condition disclosure. My post on seller disclosure in Orange County explains how that works.

Tips for buyers

• Add a tank check to your inspection. A tank sweep can look for buried tanks, and soil testing can check for leaks. See my home inspection checklist.
• Ask for paperwork. If a tank was removed or closed, ask for the records and any soil test results.
• Talk to your insurance agent early. Some companies have rules about older or buried tanks. More in my post on homeowners insurance.

Tips for sellers

If you know there is a buried tank, it is often best to handle it before you list. The New York State Department of Environmental Conservation (DEC) recommends removing old tanks rather than leaving them in place, since removal lets you check the soil and avoids surprises later. Keep every document from the work so buyers feel confident. If a leak is found, it should be reported to the DEC spill hotline at 1-800-457-7362.

How a tank affects your sale

A well-documented tank removal usually becomes a non-issue. An unknown tank, on the other hand, can delay closing or lead to tough negotiations. Planning ahead protects your price.

Need help?

Browse current Middletown and Orange County homes for sale, or learn more about the area on my Middletown, NY town guide. If you are selling an older home, get a free home value estimate, and contact me with any questions about a tank on your property.