Underground Oil Tank

I am hopefully purchasing a home in Levittown. The house has an underground tank (the newer fiberglass kind). Several people have told me it's illegal to have it underground and has to come up. I haven't been able to confirm if this is true. Does anyone know?

Obviously if it does need to be moved, we will negotiate that through our attorney to have the sellers take care of it before we close, but if it doesn't NEED to be moved, should we still ask the homeowners to do it? I have read the benefits of having it aboveground, including less chance of a spill, easier access and lower homeowners insurance costs. I'm not sure the sellers will really care about that though.

I appreciate any advice on this.

Re: Underground Oil Tank

When we bought our house there was an underground oil tank. It's not illegal but you might have a hard time finding Homeowner's Insurance (which you need to have at closing) because of the oil tank. That was the only issue we ran into with having the underground tank. The insurance companies didn't want to cover us while it was underground but we couldn't replace it until we closed but we couldn't close without Homeowner's. A total catch 22. We were able to get State Farm to cover us in case you find you're having trouble too.

I can tell you that we tried to have the oil tank replaced while the old homeowner was still in the house (we offered to pay AND we tried to get him to do it) BUT their real estate agent would NOT allow it because if something went wrong in the removal HE would've been responsible, NOT us and that could've been a huge deal.

Once we closed on the house we abandoned the old underground tank and had an above ground tank put in because we didn't want to run into ANY problems down the road with the old tank leaking into the ground. They filled the tank and cut the line and if there should ever be a problem by some chance, we are NOT responsible, the oil company is since we replaced it properly and have documentation.

Long story short, it's not illegal, many, many homes on LI have underground tanks (it's how the houses were built) and *technically* you don't really ever need to replace it but for peace of mind we did. It wasn't that expensive either. We did it back in 2005 and it was around $1500 if I remember correctly.

Message edited 6/16/2011 9:36:04 AM.

Re: Underground Oil Tank

I *believe* its illegal to put new tanks in the ground, but its not illegal to have one in the ground.

You may be able to ask them to abandon it (empty the oil, fill it with sand/foam, and install a new tank above ground). But they may be not willing to incur the expense since they're not legally obligated to. I would find out how old the tank is, and then decide if something needs to be done.

I don't think they generally get dug up and moved, just abandoned and replaced.

Message edited 6/16/2011 9:39:30 AM.

Re: Underground Oil Tank

I do not think it is illegal but you will want to try to work it into the contract that they will abandon it and install an above ground one. We live in Levittown and that was one of my main concerns. Luckily the home we bought has the tank above ground and it is in the garage.

Where in Levittown are you buying?
Scott

Re: Underground Oil Tank

Message edited 6/16/2011 9:52:10 AM.

Re: Underground Oil Tank

Thank you to everyone that replied!

Scott, the house is near Northside Elementary School.

Re: Underground Oil Tank

Oh ok - not sure exactly where that is but im assuming north of Hempstead tpke

Re: Underground Oil Tank

An underground tank is not illegal. Since it is one ofthe new tanks I would not be that worried about it. We bought our house with the new underground tank and had no issues with getting insurance. There are not as many companies that will insure you but you can def find it. Besure to be upfront about it with the isnruance company because if they find out then they will drop you. So just tell them up front.