Regan Brown
Underground fuel tanks are a common issue in real estate transactions, as they can cause environmental hazards if not properly maintained or removed. In Chicago, it is recommended that buyers investigate the possibility of underground tanks on or near the property they are purchasing to avoid inheriting potential problems. The cost of removing a tank is typically negotiated between the buyer and seller, with the seller generally covering the expense. However, in Chicago, buyers are responsible for cleaning up pollution from their property that has spread to neighbouring properties.
| Characteristics | Values |
|---|---|
| Responsibility for removal of underground fuel tank | Negotiated between buyer and seller, with the seller generally paying the cost |
| Responsibility for cleanup of pollution from a fuel tank leak | The owner of the property where the tank is located |
| Responsibility for cleanup costs of pollution from a fuel tank leak | The owner of the leaking tank, who may be pursued in court by the owner of the polluted property |
| Importance of investigating the presence of USTs | High, as the owner of a property with a leaking tank is responsible for cleanup |
| Recommended course of action if a UST is present on a property being sold | Removal of the tank prior to the sale of the property |
| Cost of removing a residential underground oil tank | $1,000 to $2,500 depending on size |
| Common signs of the presence of a UST | Information plate on an old boiler, old oil stains on the floor near the furnace, odor of heating oil in the basement, presence of a vent pipe or fill pipe outside |
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What You'll Learn
- Buyers should be aware of the risks of purchasing property with an abandoned underground tank
- The cost of removing a tank is usually negotiated between the buyer and seller
- Buyers can request a limited subsurface investigation to test the soil and groundwater
- A home inspection may identify an underground fuel storage tank
- Buyers may pursue the seller in court to recuperate cleanup expenses
Buyers should be aware of the risks of purchasing property with an abandoned underground tank
In Chicago, buyers are generally responsible for removing underground fuel tanks. However, it is crucial for buyers to be aware of the risks associated with purchasing property with an abandoned underground tank. Underground tanks that are not properly decommissioned can cause significant issues for homeowners, including costly repairs, environmental hazards, and health risks.
Firstly, it is important to understand that underground tanks older than 20 years are at a significant risk of leaking. Leaking tanks can contaminate the soil and groundwater, leading to costly remediation efforts. Fuel oil, being lighter than water, will penetrate the soil until it reaches groundwater and then travel on the water surface. This contamination can pose a hazard not only to the property owner but also to neighbouring properties and local wildlife. Additionally, leaks can result in the buildup of fumes and other hazards in the basement or first-level floors, creating a serious health risk and a potential fire hazard.
Before purchasing a property, buyers should conduct a thorough inspection to identify any abandoned underground tanks. This includes checking the boiler or furnace for information plates indicating the use of oil, looking for old oil stains on the floor, and being vigilant for the odour of heating oil, which resembles diesel fuel. Outside, the presence of a vent pipe or a fill pipe, typically capped, can be an indicator of an underground tank.
To protect themselves from future liability, buyers should request a limited subsurface investigation to test the soil and groundwater for potential contamination. Additionally, if a fuel storage tank has been removed, buyers should obtain a "tank closure report" and any lab reports to ensure proper disposal. It is also recommended to consult state records and check with the local fire department for any fuel storage permits on file.
In some cases, buyers may choose to include the removal of the underground tank as part of the terms of their offer. However, it is essential to carefully review the paperwork and consult with a real estate attorney to ensure all proper requirements are met and to understand the potential environmental regulations and liabilities associated with the purchase.
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The cost of removing a tank is usually negotiated between the buyer and seller
The presence of an underground fuel tank can be a significant concern for prospective homebuyers. In Chicago, as in other places, underground storage tanks (USTs) were not well-regulated before the 1980s, leading to many forgotten and abandoned tanks. These tanks can pose environmental and financial risks for new homeowners, who may be unaware of their existence until identified during a home inspection.
The cost of removing an underground fuel tank typically ranges from $1,000 to $2,500, depending on the size of the tank. The removal process can be complex and is best handled by experienced contractors to ensure it is done properly and safely. Given the potential risks and costs associated with underground fuel tanks, it is common for buyers to include their removal as part of the terms of their offer when purchasing a property.
In Chicago, the negotiation process regarding the removal of underground fuel tanks is guided by specific regulations. The Illinois Residential Real Property Disclosure Act requires sellers to disclose whether they are aware of any USTs on their property. This disclosure is made through a standardised form, where sellers answer "yes," "no," or "not applicable" to the statement, "I am aware of underground fuel storage tanks on the property."
This legislation provides buyers with valuable information to make informed decisions. Buyers can choose to negotiate with the seller for the removal of the tank before the purchase or factor in the cost and responsibility of removal into their offer. Ultimately, the financial responsibility for removing the tank is determined through negotiation between the buyer and seller, with the seller typically bearing the cost.
To protect themselves from future liability, buyers are advised to conduct a limited subsurface investigation to assess the condition of the property. This involves testing the soil and groundwater for potential contamination from leaking tanks. Additionally, buyers should be vigilant for signs of underground fuel tanks, such as old oil stains, the smell of heating oil, or the presence of vent or fill pipes near the house.
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Buyers can request a limited subsurface investigation to test the soil and groundwater
Purchasing a property with an abandoned underground fuel tank can be a risky affair. Underground storage tanks (USTs) may corrode over time, leaking their contents into the surrounding soil and eventually the groundwater supply. This can lead to serious environmental concerns and costly clean-up expenses.
To protect oneself from future liability, buyers can request a limited subsurface investigation to test the soil and groundwater. This is a valuable tool to assess the condition of the property before finalising the purchase. A simple test of the soil can reveal if there are any leaks from the underground tank, which may not be apparent otherwise. For instance, some homeowners may simply paint over large stains under basement oil tanks to hide them. Other red flags include a newly painted floor in a home where an oil tank was removed, or the presence of old oil stains on the floor near the furnace or feed lines.
In Chicago, any UST with a capacity of storing petroleum products of 110 gallons or more is regulated under the Municipal Code of Chicago by the CDPH. The CDPH has developed the UST Operation and Maintenance Manual for Owners and Operators to assist them in ensuring their USTs do not leak. Additionally, the Residential Real Property Disclosure Act in Illinois requires sellers to disclose whether they are aware of any USTs on the property.
If a buyer discovers an underground fuel tank after purchasing a property, they may pursue the seller in court to recuperate clean-up expenses. However, the buyer must prove that the seller was deceptive during the transaction. To avoid such disputes, it is recommended that buyers include the removal of the underground tank as part of the terms of their offer. The removal cost of a residential underground oil tank typically ranges from $1,000 to $2,5000, depending on its size.
In conclusion, a limited subsurface investigation to test the soil and groundwater is a prudent step for buyers to take when purchasing a property with a suspected underground fuel tank. This can help identify potential environmental hazards and ensure a more informed decision-making process.
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A home inspection may identify an underground fuel storage tank
Home inspectors play a crucial role in identifying these tanks and assessing their condition. They examine the property for any signs of a buried tank, such as old piping, oil stains, or the distinctive odour of heating oil. Inspectors also determine whether the tank is active or inactive and recommend leak tests, especially for older or unused tanks. Leaking tanks can contaminate the soil, groundwater, and nearby water sources, leading to costly remediation processes.
In Chicago, the presence of underground storage tanks (USTs) is a significant concern. Buyers are often hesitant to purchase properties with old, leak-prone tanks due to the potential liability and expenses associated with remediation. The Illinois Residential Real Property Disclosure Act requires sellers to disclose the presence of USTs on their property. The cost of removing a tank is typically negotiated between the buyer and seller, with the seller usually bearing the cost.
To protect themselves from future liability, buyers should consider requesting a limited subsurface investigation to test the soil and groundwater for potential contamination. Additionally, buyers should be cautious of red flags, such as newly painted floors in areas where an oil tank was removed, as this could indicate an attempt to hide stains from leaks.
While modern residential propane tanks are safer and easier to inspect, the discovery of an old underground fuel tank can still be a daunting prospect for homebuyers. It is essential to conduct thorough inspections and be aware of the potential risks and expenses associated with these hidden hazards.
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Buyers may pursue the seller in court to recuperate cleanup expenses
In Chicago, the presence of an underground fuel tank is a significant concern for prospective homebuyers. The cost of removing such a tank typically ranges from $1,000 to $2,500, and it is generally recommended that tanks be removed before the sale of a home is finalised.
While the cost of removal is usually negotiated between the buyer and seller, with the seller often bearing the expense, buyers may find themselves liable for cleanup costs if they do not conduct due diligence. Buyers can protect themselves by requesting a limited subsurface investigation to test the soil and groundwater for potential contamination. This is particularly important because fuel oil can migrate great distances depending on soil composition, and sellers may attempt to conceal leaks by painting over stains or moving tanks to new locations.
If a buyer discovers contamination after the purchase, they may pursue the seller in court to recuperate cleanup expenses. However, to be successful, the buyer must prove that the seller was deceptive during the transaction. This can be challenging, and it is generally preferable to identify potential issues before finalising the sale.
In some cases, government agencies may provide assistance with cleanup costs. For example, the US Environmental Protection Agency's Leaking Underground Storage Tank (LUST) Trust Fund is used to oversee cleanups by responsible parties, enforce action by uncooperative parties, and pay for cleanups when the responsible party is unknown or unable to pay. Additionally, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) authorises the EPA to compel parties responsible for hazardous waste at Superfund sites to clean them up or reimburse the EPA for its cleanup costs.
To summarise, while buyers may have legal recourse to recuperate cleanup expenses from the seller, it is crucial to conduct thorough investigations and negotiations before finalising the purchase of a property with an underground fuel tank.
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Frequently asked questions
The buyer and seller can negotiate the removal of an underground fuel tank, with the seller generally covering the cost. However, the buyer may be responsible for the tank's removal and any necessary cleanup if they purchase the property with the tank still present.
Underground fuel tanks can leak hazardous materials, contaminating the surrounding soil and groundwater. As the owner of the property, you are responsible for cleaning up any pollution that has migrated from your property onto another.
You can check for signs such as old oil stains on the floor near the furnace or basement, the smell of heating oil or diesel fuel in the basement, or the presence of a vent pipe or fill pipe in the lawn or next to the house.
You should consider engaging an experienced underground tank removal contractor to properly remove the tank and address any environmental concerns. You can also contact your local environmental protection agency for guidance on permits, leak prevention, and financial responsibility requirements.
