Hot Environmental Topics

Buyer Beware when it Comes to Mold & Oil Tank

If you are buying a home, it may be your first or may be your third.  Either way the internet has no doubt made you a sharper consumer. You can assess the property online by evaluating photos, sometimes 3D tours of the home, school districts, past sale prices for the property and the neighborhood, property taxes, the list goes on.  No doubt you know how to google information. So you find the home, make an offer, it goes under contract and now your due diligence happens.  A home inspection, etc.  You are a savvy buyer so you look into other inspections you can do, Roof?, Mold? Oil Tank Sweep?  Yep, you do them all but guess what the seller has access to the internet as well, they may even be buying another home so they have concerns with inspections of their own.  But since they are selling they are also concerned with what you might find and the cost.

Be fair, if you had a buried tank at a home you were selling and you googled oil tank leak and the following photo popped up, how forthcoming would you be about the tank?  

True statements:

Sellers don't want to have to spend money to sell their homes.

Buyers, don't want to spend money on unexpected repairs, mold and oil tanks are top of the list. 

Both items are not covered by a home inspection, so while a home inspector may flag that the hot water heater needs to be replaced, they are not going to point out a $4,000.00 mold remediation.

The best advice we can provide is to be aware of what inspections are prudent during the home buying process.  

Regarding tank sweeps, they can be a lifesaver.  Tank Sweeps

Tank Nightmare aka property listed again with no mention of the oil tank

The contract of sale falls apart due to the oil tank.

The story goes that the owner selling their home finds that their old unused oil tank is not a selling feature so they decide not to mention it on the listing information.  Home goes under contract and out of guilt, sellers admit to an oil tank when asked.   Curren quotes the removal and the seller wants to know what happens if the tank leaks.    The seller decides not to remove the oil tank, this killed the deal.

Fast forward a few weeks, and the property is relisted, again with no discussion of an oil tank.    So now a seller is flat out forgetting a tank was known to exist (I don't say lie) and we get a call from a new buyer for the home and they want us to do a tank sweep.

Really, must we be the only straight-talking people?  Hey, this situation is easy to resolve, we remove the tank.

But how about the person who buys the house with a tank that was not disclosed (we found it for another buyer) and they get transferred with their job in a year and have to sell the home?

The anger, the lawsuits, heck the only happy people are the attorneys.   Happens again and again. Realtors if you are reading and if you know the listing has a tank and the buyers are not disclosing, you better disclose, I have a few realtors getting sued for this.  Email can be forever, people talk, buyers share bad news (ever hear of social media?), I am not going to say how each attorney researches facts,  to trace how someone knew something and didn’t disclose it or blankly fabricated an untruth, but it's much easier than you think.

Now to be fair we have been around for over 20 years, we touch thousands of sites a year and every so often we get a boomerang.  What is a boomerang?  A project we were involved with stopped dead in its tracks, Curren finds a tank, finds mold, finds contamination, the deal falls through, owner cancels the contract for tank removal/mold.  Ok it happens, we aren’t pushy, if the owner changes their mind they have our number.

Why talk about this, because buyer beware, I would rather consult for a buyer to interest BEFORE they buy a problem.

Why are we happy when we find a tank, find mold, or contamination for a buyer?   Because our client doesn't own the property yet, we did our job we found a problem and now this problem can be presented to the seller for correction.  Surely the seller doesn’t want to sell you an environmental problem costing thousands of dollars?    Sadly there is a % of people that will, many step up, but some sellers do not, hence you need for proper due diligence.  

When buying a home a home do your due diligence.

Tank sweeps?  Click here  Tank Sweeps

Mold Inspection Click here  Mold Inspections

Expert advice you can rely upon, that Curren Environmental.

 

What  happens when a home inspection finds a possible underground oil tank?

A common request our office receives regarding a tank sweeps.

"Hello, I'm selling my home and we suspect that the buyer did a tank sweep with a metal detector vs GPR. They supposedly think they found a tank on the property. We do not see any evidence of a tank, nor was one disclosed by the previous owner (who bought the home in the 70s, house is 80 years old). Is it possible that this 'tank' is just a gutter drain pipe, part of our sprinkler system and/or rubble backfill such as a chunk of concrete sidewalk with rebar or metal containing soil? If so, would a GPR scan be conclusive? Thanks."

This is a common situation we get from property owners who are told they have a buried oil tank.   The owner has the question regarding if the meta detector is reliable.    Here are some common talking points...

1. The property owner is unclear how the suspect tank was found.  Was it found with a Metal detector, or  Ground Penetrating Radar or both? (both GPR and a metal detector would be best) The solution would be having the owner receive a copy of the Tank Sweep Report so they would have a baseline regarding what they found and where. Yes, every professional service should come with a report, no report, then question how professional the service was.
2. The property is over 70 years old, so while the owner has no knowledge that there was an oil tank, they also have no documentation that there was not an oil tank. A 70 year old property most likely had oil heat at one point in time as oil was very popular in the past and other fuel sources such as natural gas was not commonly available or financially appealing until the 1970's.
3. The tank scan found a buried object, presumably metal. If only a metal detector was utilized, you can't say 100% if the metal found is a tank as metal detectors detect metal and properties have all sort of buried metal. Metal can be in the soil naturally, you could have buried debris, buried metal pipes or surface metal (like a fence) that distracted the metal detector and have a false buried metallic signature reading. Happens all the time. A metal detector on a sandy beach is great it will find buried metal, likely a bottle cap, but people hope for coins or expensive jewelry. People paying a couple hundred dollars for someone to use an $800 metal detector to find a tank are also helpful.

The photo below was where a metal detector thought there was a tank.  There was no tank, just soils with a metallic signature.

The guy in shorts, is using a $900.00 metal detector and found a suspect tank in the front yard.

When you scan for a tank, the more expensive the equipment the better.   GPR (Ground Penetrating Radar) costs tens of thousands of dollars because it has the technology to do the job.

 Effective Oil Tank Scan or Oil Tank Sweeps like on commercial sites would use GPR as it will                            provide a signal (image) of buried objects.

The signal above shows the underground oil tank. 

Purchasers of commercial properties are more aware of the liability associated with leaking USTs (Hundreds of thousands of dollars) compared to a residential home buyers (Homeowners think a few thousand dollars is a lot.) So on the commercial side of real estate tank sweeps are completed with GPR, not metal detectors. Most environmental consultants that perform tanks weeps will use GPR and discount the cost for residential sites. Nobody wants to see someone buy a house and find a $50,0000 cleanup is required.

What if a buyer finds a suspect tank?

This is a really hard question because it relies so much on the quality of the tank sweep.    If they used GPR, if the property is likely to have had an oil tank (older the home, the more likely) and if the buried anomaly has the signature of a tank.  Well then you have to excavate and confirm that object is an oil tank.

Who pays for the oil tank removal?

Owner will pay 98% of the time as finding a hidden oil tank is a defect that needs to be addressed.

Do they have buried oil tanks at the beach (shore)?

If the home wanted heat, then yes homes along the coast and on islands had buried oil tanks.  Oil was king up until the late 1970's in New Jersey.  The photo below is of a home we scanned on a barrier island.  Many older beach houses eventually converted to natural gas, as gas could also  fuel the stove, dryer,  hot water heater etc.   After conversion to gas, it was not uncommon that the tank was just left in the ground.  So short answer beach houses had oil tanks.

What if a suspect tank is found and we don't believe its a tank?

Short answer prove your opinion right and dig it up and verify its not a tank.

What is the best tank sweep?

Using Ground Penetrating Radar is the best technology for finding buried tanks at properties, period.  Can you use a metal detector to verify a GPR signal that identified a tank?  Sure, always verify the object is metal.  GPR can't penetrate metal so when a GPR sweep pings a tank, it means the radar can't penetrate the object (likely a metal tank) but there are buried concrete tanks.  Metal detectors can verify an object is metal, but a metal detector  should not be used to be your sole technology

                    Why is an Oil Tank Sweep Important?

From 1900 to 1945 coal was king (coal shortages were common during WWI). By the mid 1930’s oil burners had made quality and safety improvements that made oil a competitor to coal. In 1940 more than half the homes burned coal. America oil reserves and steel making prowess from WWII allowed oil to be rapidly adopted after WWII (1945).

In the 1970’s and 80’s due to natural gas shortages and price irregularities the natural gas market become deregulated. Deregulated allowed for competition and market based pricing, which meant lower prices, this drove the popularity of natural gas. So natural gas didn’t become popular until the late 1980’s.

For homes built between 1900 and 1980, oil heat was highly probable at some point in the past (in short what were your alternate choices for heat besides oil?). Construction codes didn’t address oil tank removals until the 1990’s. Environmental regulations today have strict standards for heating oil leaks from tanks in soil and groundwater. In short, an oil tank leak can make the owner of a property a polluter so to speak. On top of that the regulations view the current owner of a property as the Responsible Party (RP) for the cleanup.

Today, you could buy a house built in 1950, that used oil until say 1980, when a conversion to gas occurred. The old oil tank was literally just left in place (abandoned), since doing anything cost money. Fast forward to 2020, you are buying that home with an oil tank that hasn’t been used in decades. If you don’t add a tank sweep with GPR (ground penetrating radar) to your home purchase due diligence you are opening your self up to a responsibility and an expense with the oil tank, as when you sell someone will do a tank sweep and find the tank you never knew you had or used, which happens all the time.

Today the internet is used not just for shopping, but for education. There are homeowners that have an oil tank on their property (used or out of service), these homeowners have learned via the internet (websites like this one) of the liability of an oil tank. We find that some people will hide the evidence of the tank and hope that no one looks for an oil tank, since the home is now heated by natural gas. Do you find it hard to believe that someone would try to hide the truth? Follow this story.

Home went under contract, home inspection and all, everything but a tank sweep with GPR was performed by the purchaser of the home. One day before settlement the prospective homeowner does a walk through of the property and low and behold someone spray painted "tank" on the ground. (this is a true story. I couldn’t make things like this up).

 

Home was a flip, so the owner (really owner for 7 months) had no knowledge of any oil tank. Curren scanned the marked area and bingo oil tank, about ¼ full of oil. We can only speculate as to why the tank was hidden and why someone spray painted tank on the sidewalk. The general theory is a neighbor was aware of a tank at that location and also aware the owner removed evidence of the tank. Presumable the neighbor removed their tank and didn’t appreciate the neighbor not doing the right thing and removing theirs. We believe this is a likely scenario as we have seen it on other sites that we have performed tank scans/sweeps. People will park cars in driveways over tanks. People will say a tank was removed and we scan the area and find a metal object indicative of a tank.

We even have people who have removed their own tanks, we get contracted to do soil borings and soil sampling from the removed tank area. $35,000.00 later, we find that the tank did leak, the owner just thought that oil is naturally present in a removed tank excavation.

 

Bottom line you cannot rely on statements from a seller such as these:

There is no oil tank.

That the tank was removed

The removed tank didn’t leak.

Do you need to complete a tank sweep? Yes, if the home was built before 1980 and you can’t get 100% written documentation that natural gas was always utilized to heat the dwelling.

Curren Environmental has been solving tank related issues for over 20 years.   Oil tanks were like cell phones, they were ubiquitous in homes in the Northeastern United States.  Oil was king as the graph shows:

 

Oil heat was more popular than natural gas up until 1980!

In 1950 43.9% of homes had oil heat

In 1960 62.9% of homes had oil heat

In 1970 52.6% of homes had oil heat

 

So in 2019, what are the odds the home your buying has or had an oil tank? Pretty high for sure.   

 

 

Tank Scans with GPR = Buyer Due Diligence

 

 

A tank scan found this tank.  You can see from the many holes in the tank, that the tank leaked.   Thankfully the home buyer had a tank sweep completed and found the tank.  The homeowner had to remove and remediate the oil tank.