Purchasing Real Estate with an Underground Oil Tank in NJ – What You Should Know
Oil Tank Discovery
When it comes to the presence of an underground oil tank, you can’t necessarily be sure of it when purchasing real estate in New Jersey. It is possible that the owner is aware of the oil tank and will disclose it to you, as most real estate attorneys agree they should. However, it is also possible that the seller purchased the property unaware of an existing oil tank, or is attempting to conceal that information. In either case, the buyer should assume the responsibility of finding out without a doubt whether or not there is a buried oil tank on the property. Always consult a Certified Underground Storage Tank firm like ERC Environmental that can assure you of your situation in an efficient manner.
Tank Removal Cost Decisions
If there is indeed an underground oil tank on the property, you must take all potential financial ramifications seriously and work with the seller to ensure your real estate investment is worth while. This is most commonly done with the seller agreeing to pay the full cost of the oil tank removal and/or soil remediation before the sale is closed, or the total cost may also be taken off of the sale price. Alternatively, a clause can be included in the real estate contract that states the seller is responsible for paying for oil tank removal and/or soil remediation- either in full or after a certain amount.
Regardless of method, it is crucial that New Jersey real estate purchasers protect themselves from the cost of oil tank removal in addition to a regular sale price. While ERC Environmental offers competitive flat-rates that cover the majority of oil tank removal and/or soil remediation projects, there is always the possibility that your particular situation has extenuating circumstances that could be costlier than you ever would have imagined. If a leaked oil tank spills into the water column, for instance, the environmental ramifications can prove very serious and the cost of cleanup can soar into the tens or even hundreds of thousands of dollars.
If you are purchasing real estate or are a real estate agent, always be sure to be thorough about the discovery of an underground oil tank before closing on a sale. Give ERC Environmental a call for a free quote and quick, convenient service throughout New Jersey.