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Prior to the late 1960's, most homes were heated with an oil furnace.  As such, most homes of this age have or had a non-commercial UST (Underground Storage Tank), typically of 1,100 gallons or less.  The NC EPA rules on buried oil tanks on residential properties changed in 2015. As of Oct. 1, 2015, no state monies are available for the reimbursement to homeowners or tank owners for clean-up activities performed at leaking non-commercial UST incident sites discovered after this date.  This means the homeowner is on the hook for the removal and clean up of leaking/dormant underground oil tanks. An inspection by a licensed professional may be required to verify if an existing buried tank is intact or leaking.

 

The $10,000 question....can a residential property with a leaking UST tank be sold?  Maybe....if the site is “Low Risk,” the property can be sold after a “Notice of Residual Petroleum” is completed and recorded with the County Register of Deeds and evidence of the recorded NRP is provided to the NC Department of Environmental Quality.

While new Residential Disclosures require the disclosure of known UST’s, the presence of many UST’s may be unknown to the current homeowner since the heating system may have been converted to a non-oil system prior to their purchase. Plus many financial institutions are now requiring the non-commercial tank be removed as part of their rules prior to providing financing for a property purchase. This can be a very expensive undertaking depending on the level of soil contamination surrounding the UST.

So what should you do when purchasing a home built prior to 1970?

• Buyers should have an inspection for the presence of a heating oil tank and associated soil contamination for any house built before mid-1960.
• Request an inspection as soon as a contract to purchase is executed.
• Include an escape clause in the offer to purchase in case contaminated soil is confirmed or the lender requires the tanks be removed as a condition of the loan.