Underground storage tank (for oil, fuel) in Indianapolis

Underground storage tank (for oil, fuel) in Indianapolis

Investor · Indianapolis, IN · Member since 2017 · 33 posts · 11 votes

Hey there,

I've made an offer on  property from 1959 and it was accepted.

Now I realize  there is an underground storage tank- that was used either for oil or fuel, and I don't know what to do.

I understood from my agent , that it must be filled with gravel/earth (if it's not filled already) and then it is not a problem.

But , I'm still worried - what can be the outcome of buying a house for buy&hold with this tank?

What is the best way to handle this issue?

Should I even purchase it- or is it bad news from the start? 

Thanks for any help!

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China, ME · Member since 2014 · 3k+ posts · 4k+ votes
9y

A lot of that will depend on your state's particular laws - both on how a non-leaking tank is to be decommissioned and how a leaking tank is handled.

If there is a leak, now is the time to find out, and possibly back out of the deal, even if you sacrifice your EMD.

Here in MA, someone who buys a contaminated property acquires the responsibility for cleanup.  It could even be attached as a particular kind of lien known as an "Order of Conditions".

First step is to get the facts.  Get a soil test and see where you stand.  

While waiting for results, formulate your plan B - and you should run this by an attorney if that test comes back positive for contamination.

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  • China, ME · Member since 2014 · 3k+ posts · 4k+ votes
    9y

    A lot of that will depend on your state's particular laws - both on how a non-leaking tank is to be decommissioned and how a leaking tank is handled.

    If there is a leak, now is the time to find out, and possibly back out of the deal, even if you sacrifice your EMD.

    Here in MA, someone who buys a contaminated property acquires the responsibility for cleanup.  It could even be attached as a particular kind of lien known as an "Order of Conditions".

    First step is to get the facts.  Get a soil test and see where you stand.  

    While waiting for results, formulate your plan B - and you should run this by an attorney if that test comes back positive for contamination.

  • Residential Real Estate Broker · Indianapolis, IN · Member since 2009 · 477 posts · 304 votes
    9y

    @Orr Kichin I just sold a house with buried tanks in broad ripple. Probably cost you $1000-1500 to get it dealt with. In my case there was a 550 gallon tank buried and it still had 350 gallons of oil in it.  They pumped oil out filled it with a cement based mix and back filled the hole.  Buyers were happy with the remediation. 

    Send me a Pm and I can hook you up with a couple of people to deal with it. 

    If you deal with it yourself make sure to document with pictures exactly what was done. 

  • Investor · Indianapolis, IN · Member since 2017 · 33 posts · 11 votes
    9y

    @Lee Smith Thank you. Will do!

  • Investor · Indianapolis, IN · Member since 2017 · 33 posts · 11 votes
    9y

    @Charlie MacPherson - I got 10 days for inspection. Can an inspector find out if there is a leak?

  • China, ME · Member since 2014 · 3k+ posts · 4k+ votes
    9y

    @Orr Kichin I would think so, but you should move fast.  I'd take some comfort from @Lee Smith's post, but if there's a leak, you need to get out in front of the situation ASAP.

    Hopefully the test comes back clean and you're only investing the amount to have it filled in.

  • Investor · Indianapolis, IN · Member since 2017 · 33 posts · 11 votes
    9y

    @Charlie MacPherson - I hope so too.

  • Residential Real Estate Broker · Indianapolis, IN · Member since 2009 · 477 posts · 304 votes
    9y

    @Orr Kichin if there is water in the tank chances are there's a leak. Go back on the seller and have them remediate. 

  • Investor · Indianapolis, IN · Member since 2017 · 33 posts · 11 votes
    9y

    @Lee Smith is there a way to handle it, if there is indeed  a leak?

  • Residential Real Estate Broker · Indianapolis, IN · Member since 2009 · 477 posts · 304 votes
    9y

    if it leaks: Can't remember if they need to remove the tank or can just backfill it. They can quote it pretty quickly. Just request an extension on your inspection response timeframe.  

  • Investor · Indianapolis, IN · Member since 2017 · 33 posts · 11 votes
    9y

    @Lee Smith - OK, thank you.

  • Investor · Louisville, KY · Member since 2015 · 8 posts · 6 votes
    9y

    @Orr Kichin Heating oil USTs in Indiana are not regulated, ie there is no requirement to report to IDEM about the removal.  Have the tank pumped of any remaining oil and either go ahead and dig it up or have it backfilled with flowable fill.  As far as cost goes it will vary but $1500-$2000 should be you taken care of.  Shouldn't take more than a couple hours to have it taken care of.  My opinion is to pull the tank vs leaving it in place.  The biggest thing is make sure they are a reputable company that will dispose of the heating oil or recycle it.  Not Billy Bob with a backhoe.  

  • Rental Property Investor · Indianapolis, IN · Member since 2017 · 104 posts · 47 votes
    9y

    @Orr Kichin

    Are you positive it's a tank and not a cistern? You'll find cisterns on the property of some of the older homes. But 1959 may not fit that bill. 

  • Investor · Indianapolis, IN · Member since 2017 · 33 posts · 11 votes
    9y

    @Russell Brooks - Alright, thank you!

    @Mark Jones - In their disclosure form was stated that it is an underground storage tank. My agent told me it's probably oil or fuel tank 

  • Peter TverdovBusiness Member
    Developer · New Brunswick, NJ · Member since 2015 · 1k+ posts · 2k+ votes
    9y

    Seller takes care of this, no negotiating. They balk - walk. This is standard to expect in NJ. 

  • Investor · Indianapolis, IN · Member since 2017 · 33 posts · 11 votes
    9y

    @Peter Tverdov - Well I'll try to do that.

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