When you’re preparing to sell your home, there’s a lot to consider, from adding seasonal plants to enhance your home’s curb appeal to making sure your paperwork is in order. But one thing you don’t want to overlook is the underground oil tank on your property. Whether it’s still in use, decommissioned, or long forgotten, addressing it before listing your home can make all the difference. Otherwise, you could face significant liability, environmental fines, or even lose a potential sale.
So, can you sell a house with an underground oil tank in Pennsylvania? Yes, you can! But to get the highest return on your investment and protect yourself from future complications, it’s strongly recommended that you have it inspected and consider removing it.
The Risks of an Underground Oil Tank
For many years, burying heating oil tanks was a common practice, as it kept the tank out of sight and protected it from the elements. Unfortunately, we now know that these tanks pose considerable risks as they age. And these risks can be a major point of concern for potential buyers, mortgage lenders, and insurance companies.
Environmental Risks
The single greatest risk of an older UST is the potential for a leak. Over decades, corrosion can wear away the steel, leading to perforations that allow heating oil to seep into the surrounding soil. This is not a minor issue. A leak can lead to widespread soil and groundwater contamination, which is costly and complex to remediate.
Financial Risks
In Pennsylvania, homeowners are responsible for the cleanup costs associated with a leaking tank on their property. These costs can range from a few thousand dollars for a minor spill to tens of thousands of dollars for extensive contamination that has reached groundwater or a neighbor’s property.
This financial liability is a massive red flag for buyers, and most will be unwilling to take on such a significant and unknown risk. Additionally, it’s important to note that many mortgage lenders will refuse to finance a home with an active, old, or untested underground storage tank. This can dramatically shrink your pool of potential buyers.
Legal Risks
Pennsylvania law requires sellers to disclose the presence of any known material defects with their property, and an underground oil tank (along with any known leaks or spills) certainly qualifies. Failing to properly disclose a UST can lead to serious legal trouble down the road. If a buyer discovers the tank or a leak after the sale, they could sue for the cleanup costs and damages.
How to Prepare a Home With an Underground Oil Tank for Sale
If your property has an underground oil tank, there are proactive steps you can take to make the real estate transaction smoother and more profitable.
1. Determine Whether a Tank Is Present
Some homeowners aren’t even aware that a tank exists on their property. If you suspect one might be buried (perhaps from heating records or visible fill pipes), start by hiring a qualified specialist to perform a tank scan. Modern detection methods can locate buried metal and help confirm whether a tank is present.
2. Get a Professional Inspection
If a tank is found, the next step is scheduling an inspection. Your oil tank company can evaluate the tank’s condition, test for leaks, and check for contamination. This process may involve soil sampling to make sure the system hasn’t released any oil into the surrounding area.
After the service is complete, be sure to keep the inspection documentation handy. This information can go a long way in assuring potential buyers that the property is safe and well-maintained.
3. Consider Removing or Properly Closing the Tank
While you technically can sell your home with an oil tank in the ground, removal is often the best choice. A certified contractor can safely remove the tank, assess any contamination, and clean or remediate the area if necessary.
If removal isn’t feasible, professional closure in place (with detailed DEP documentation) may also satisfy buyers and lenders. The key is transparency and proper documentation. Of course, you must note that keeping the tank buried underground can make future remediation challenging and more expensive if a leak is discovered.
4. Maintain All Documentation
Whether you choose tank removal or abandonment, keep meticulous records of every step. This includes permits, testing results, and the final certification or closure report. Providing a clean bill of health for your property will make negotiations smoother and instill confidence in your buyer, leading to a faster and more profitable sale.
Partner With JnJ Environmental for a Successful Sale
At JnJ Environmental, we make selling homes with underground oil tanks as stress-free as possible. When it’s time to sell your property, our experienced environmental specialists and oil tank experts can test for leaks, clean up spills, remediate contaminated sites, and completely remove underground storage tanks.
With over 45 years of experience serving Southeastern Pennsylvania, our team understands how to manage environmental risks efficiently while protecting your investment. We will provide the professional service and certified documentation you need to resolve any UST issues and approach your sale with confidence.
If you have an underground oil tank on your property, contact us today to schedule an inspection, discuss tank removal, or learn more about our oil tank testing and remediation services. With decades of experience and a proven track record, we’ll help you prepare your home for its next chapter.