oil tank in ground for an FHA loan.

[jonathan E]

The loan is FHA. There is a inground oil tank used by the tenant on the 1st floor. Is this gonna be a problem for FHA or can you just disclose and say I have no knowledge of leaks or soil contamenation.

 

[stefan olafson]

Make sure you mention in large type that there is an underground storage tank (UST). Also mention in the report that the UST is being used to store heating fuel for the furnace in the property and has been used for XX number of years. State that as far as you know there are no environmental problems with the tank, it appears to hold the oil in it.

FHA may require an engineers opinion on it but you've CYA if you do what I've written above.

 

[PBKlingensmith]

Mr Stefan is correct, I just did one last week with well, septic, and a 1000 gallon UST.

 

[Mike Boyd]

I agree but I would list the tank as a possible source of contamination to ground water. Let the underwriter call for any inspection and/or certification.

 

[Mike Garrett RAA]

I think I would just disclose the presence of the tank and let it go at that. The minute you use words like "possible or potential contamination" you will be opening a bucket of worms.

 

[Don Clark]

I think I would just disclose the presence of the tank and let it go at that. The minute you use words like "possible or potential contamination" you will be opening a bucket of worms.

Amen to that Mike. Don't take on language that you cannot prove.

I use the following for instances where I suspect, or cannot be sure of environmental contamination based on inspection, age of subject, etc.

"The appraiser cannot rule out the possibility of...................based on a physical inspection or age of the subject property. Only a qualified expert in environmental hazards and/or conditions can provide a definitive answer."

 

[Dave Fitch]

I think I would just disclose the presence of the tank and let it go at that. The minute you use words like "possible or potential contamination" you will be opening a bucket of worms.

Exactly! One could take this to the extreme and question electrical system, plumbing, heating, fireplace, roofing, smoke detectors, etc. as all possible or potential problems, purely just to CYA. Don't go there! Use your head, don't be a fear monger! Like Mike stated, "you will be opening a bucket of worms" that you had no basis to open anyway.