Abandoned Oil tank

[Formula Fan]

I have an FHA property with an unused underground oil tank. I read 4150.2 and don't know what to do about it. Should I call for removal or what?

Thanks

 

[Don Clark]

I have an FHA property with an unused underground oil tank. I read 4150.2 and don't know what to do about it. Should I call for removal or what?

Thanks

I have just dealt with the same thing, only for a VA appraisal. I called for it to be filled or removed in accordance with whatever the local codes were. I was told it was filled years ago but they could not prove it since the company went out of business, and could I take the word of the former owner. I said I cannot. Ask the underwriter. the underwriter said that the appraiser would have to accept that(my liability). i said that they could get a company that is in business to go out and determine if it had been filled or not, and remove the fill pipe and vent pipe. It will likely fall through as the seller said they will not do that. Out of my hands now.

 

[RSW]

You could call for a phase I or phase II environmental inspection be done to determine if the tank has been filled. Make the appraisal subject to an inspection and make an extraordinary assumption in the report.

 

[Daystar]

I would call for a certification that it has been properly abandoned

 

[Kevin Mc]

I would call for a certification that it has been properly abandoned

Bingo.....

 

[AJL118]

Properly abandoned? I am not quite sure what that means. If I were the buyer, I would want it removed and the site cleaned up if necessary. I can see the potential liability down the road if the "properly" turned out to be "improperly".

 

[Daystar]

Properly abandoned? I am not quite sure what that means. If I were the buyer, I would want it removed and the site cleaned up if necessary. I can see the potential liability down the road if the "properly" turned out to be "improperly".

I guess you will have to research to find out, but its not willy/nilly there are rules and regulations that govern the abandonment of UST. Enviromental experts that are certified to abandon tanks are familiar with what is required and they are also familiar with the term "PROPERLY." I am not the expert, thats why I would call for a "CERTIFIED EXPERT" to properly abandon the UST>

 

[Kevin Mc]

Properly abandoned? I am not quite sure what that means. If I were the buyer, I would want it removed and the site cleaned up if necessary. I can see the potential liability down the road if the "properly" turned out to be "improperly".

That is a term used in our market Tony. It means that the tank has been filled and soil has been tested to be benign. There are hundreds of thousands of homes in our market with buried tanks. They are not removed when replaced they are "abandoned". No new tanks are allowed to be buried.

 

[AJL118]

Thanks for the info. I was concerned due to a personal homeowner's experience which could have been very expensive. Luckily, we weaseled out of it with no recourse.

 

[RSW]

Properly abandoned? I am not quite sure what that means. If I were the buyer, I would want it removed and the site cleaned up if necessary. I can see the potential liability down the road if the "properly" turned out to be "improperly".

That's why I would condition for a phase I or phase II environmental inspection. The lender would want to know as well as they could be held liable for clean up of the site if found to be contaminated.