found UST what should I do?

Question

Looking to purchase a building and during due diligence it was discovered a UST exists. Seller had UST "abandoned" back in 2007 and they provided document showing this. I asked seller that I still wanted UST to be removed. They refused. I offered to reimburse them for the cost of removal (not including contamination clean up if any) and they still refused. What should I do?

Rick H. · Answer

I have been a real estate investor since 1978 and have never heard of UST as any universal or common terminology.

What, prey tell, is this?  I was unable to discern contextual either.

Cogent queries have a higher chance of attracting better responses.

Account Closed · Answer

Since, I have worked in heavy industrial real estate (picture heavy metals, and dry cleaning chemicals, and even buying superfund sites) I can tell you UST is commonly used in the business.  AST is also common it stands for Above ground Storage Tank.

It is not absolutely necessary to know the terms.  These tanks are absolutely required to be disclosed.  Half of the paper work from the transaction might be about tanks.  Failure to disclose the tanks will normally mean the liability of the tanks will not transfer to the new owner fully at the time of the transfer of title.

@Peter Fokas  I think the standard UST rules apply.  Removal of the tank and clean up is always best case if you are not paying for it.  The question is "are the additional costs worth it?"

How much is the house worth without the tank?  What is the going rate of tank removal without cleanup in your area?

Peter Fokas · Answer

I would say for 3,800 the cost is worth it based on the rate of return of the property. That being said a remediation cost of 10k or greater is not worth it financially.

Peter Fokas · Answer

Quote for removal is 3,800.  If contamination is found that additional cost.  My realtor told me average cost for contamination remediation is aroun 10,000.00

Rick H. · Answer

Would have never guessed. Thanks.

Christopher Phillips · Answer

UST -> underground storage tank... An issue here in the North East. Many people had oil tanks buried in their yards. They had a life expectancy of about 30 years, which seemed like a long time back then. But if you're in the home long enough at some point you have to get a new tank, usually the next tank is put somewhere above ground in the yard or in the back of a garage if space permits. The old tank is either dug up or abandoned.

If the tank was abandoned properly (emptied and back filled with dirt or sand), there should be a certificate or letter with the local EPA office. That's all that's needed. No seller is going to remove it, even if a buyer paid them to do so.

found UST what should I do?

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