Flipper · South Orange, NJ · Member since 2017 · 14 posts · 7 votes
Hi Everyone,
I purchased a property to flip about a year ago. Prior to purchase, as is customary in NJ, I had a tank sweep company come investigate the property. They indicated that there were no oil tanks on the property. Fast forward a year later, we get an offer and the new buyers find an oil tank as part of their pre-purchase inspection. I was completely shocked given that I had paid to have some one to look for a tank. Anyway, the tank sweep company said they don't do oil tank removal and to take matters up with their insurance. The adjuster says over the phone that they do not think the tank sweep company should be responsible for any removal costs which could go into 5 figures. Has anyone else had this problem? How should this be handled? Any advice would be greatly appreciated.
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
8y
@Michael Lear I would pursue them for the full cost of removal due to gross negligence on their part. The only service they were contracted to provide to you is finding tanks. They did not perform the function. Other professionals can attest that had they done the scan, they would have found it. My guess is they were in a hurry and skipped the scan or they had a bad battery or some reason it didn't get picked up. Of course their adjuster is going to try to avoid responsibility. Get an attorney and have signed statements from the professionals.
Think of it another way. If I got in a car accident due to running a light by accident, would I be responsible for the damage that occurred? Mistakes have consequences, tell the weasel insurance adjuster that.
Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
8y
ok Thanks Michael. Good luck with getting this resolved. The worst scenario I ever saw was $100,000 contamination Cleanup in Cranford. Had the whole front and side yard dug up with steel girders running through the basement. Fortunately Insurance took care of it. So $13,000 is considered relatively light. Especially if it hasn't yet hit the water table. It could have been a lot worse. Best bet is to probably go with companies that most investors around here use. Qualified is 1 and ATS environmental is another.
ok Thanks Michael. Good luck with getting this resolved. The worst scenario I ever saw was $100,000 contamination Cleanup in Cranford. Had the whole front and side yard dug up with steel girders running through the basement. Fortunately Insurance took care of it. So $13,000 is considered relatively light. Especially if it hasn't yet hit the water table. It could have been a lot worse. Best bet is to probably go with companies that most investors around here use. Qualified is 1 and ATS environmental is another.
Qualified Tank Scanning was recommended to me by someone I trusted. Was thinking of going with ATS at the time. My broker said he’s only dealt with this kind of thing once or twice in 21 years. The property was tiny. Missing a tank on like a .15 acre lot is just unfathomable. It should never happen. This has to be the worst case for this size of house and property.