Remove oil tank?

[BOCK FOLKEN]

Just got back from FHA inspection and the subject property has a brand new heat pump hvac system; however, the old above ground oil tank is still in the back yard (no longer needed).

Do I need to require the removal of the tank as a condition? If not, what would you recommend?

Thanks in advance

 

[Fritz in NY]

If it's not leaking, not dangerous and not offensive to the market, I would photo it, mention it and let the UW make the call.

 

[zdfenton]

I agree with Fritzvogel. If there is no evidence of leakage just mentioned it and move on

From HUD HOC reference guide

Chapter 1
Appraisal & Property Requirements
Page 1-18g
[FONT=Verdana, Geneva, Arial, Helvetica, sans-serif]Operating and abandoned oil and gas wells pose potential hazards to housing, including potential fire, explosion, spray and other pollution. Therefore, no dwelling may be located closer than 300 feet from an active or planned drilling site or 75 feet from an operating well; this applies to the site boundary, not to the actual well location.[/FONT]

[FONT=Verdana, Geneva, Arial, Helvetica, sans-serif]1. Underground Tanks: If there is any observable surface evidence of leakage from an underground storage tank, further analysis/testing is required. [/FONT]
[FONT=Verdana, Geneva, Arial, Helvetica, sans-serif]2. Hydrogen Sulfide Gas: Commonly referred to as Sour Gas Wells are extremely hazardous. Please see: HUD Handbook 4150.2, Section 2-2.D. "Special Case..." for instructions.[/FONT]
​

 

[Terrel L. Shields]

Not a well, so I am with fritz...

 

[RSW]

I agree with the other posts.

 

[Functional Obs]

No.



[ten more characters so I can post]

 

[Kevin A. Spellman]

The FHA protocol is always with the authorities within the state. Here in Massachusetts abandonment of an oil tank after two years of non-use requires removal. The authority of an abandoned home heating oil tank in MA is the bylaws with the Massachusetts State Fire Marshall. This is a common problem up here in MA. I always tell other appraisers become product knowledge. Do not just shift responsibility to another. State the facts and what would a typical and knowledgeable buyer do.

The cost of removal should be considered. This adjustment would respect the spirit of the lenders/investor asset protection. It cost about $500 for a typical 275 gallon tank that is empty. The oil in a home heating oil tank is considered contaminated and there would be additional cost of pumping and disposal of the contaminated oil.

 

[Don Clark]

The FHA protocol is always with the authorities within the state. Here in Massachusetts abandonment of an oil tank after two years of non-use requires removal. The authority of an abandoned home heating oil tank in MA is the bylaws with the Massachusetts State Fire Marshall. This is a common problem up here in MA. I always tell other appraisers become product knowledge. Do not just shift responsibility to another. State the facts and what would a typical and knowledgeable buyer do.

The cost of removal should be considered. This adjustment would respect the spirit of the lenders/investor asset protection. It cost about $500 for a typical 275 gallon tank that is empty. The oil in a home heating oil tank is considered contaminated and there would be additional cost of pumping and disposal of the contaminated oil.

Same here. I simply state that the abandoned oil tank should be either removed or remediated in accordance with local requirements. Same for an underground tank. If it appears that it could be a safety issue I will cite that and suggest it be removed. If underground I will suggest it be removed or filled with sand or concrete in accordance with local requirements.

I have never had a lender disagree with removal.