Selling a House With an Oil Tank

Who this is for

Why it comes up at closing

A lot of older Long Island houses were heated with oil, and many had a buried tank in the yard. A buried tank that's still in the ground and hasn't been properly closed is an unknown. Nobody can see whether it leaked.

So when the buyer's home inspector spots a fill pipe or a vent pipe, the questions start. The buyer's attorney asks. The lender or title company may ask. The buyer's insurance company may ask. What they're commonly asking for is proof the tank was properly closed.

To be clear: that's common practice, not a law that says you can't sell. But a closing can stall until someone produces the paperwork, and "we'll deal with it after" rarely flies with a buyer's attorney.

What paperwork is commonly requested

• Nassau: the verification letter the county Health Department issues after its inspection of the removal or abandonment.
• Suffolk: the written proof of closure filed with the Suffolk County Department of Health Services.
• Proof it was filed. We file everything with the county, and you get a receipt from us showing it was filed. One to two weeks later, the completed work shows up in the county's online records, where you, your attorney, or the buyer's side can look it up.
• Sometimes more, such as a soil test. That's up to the buyer and lender. Find out early what the other side wants so the work only has to happen once.

Removal or abandonment? Both are proper closures when they're done right. Some buyers and lenders prefer removal, so if you're the seller, ask before you book. Our quick helper walks you through it.

Missing paperwork from an old job

This is what stalls closings most. The house is on its third owner. Someone abandoned the tank in the 1990s. Nobody can find the letter.

1. Check the closing file from when the current owner bought the house. Tank paperwork often ended up in there.
2. Ask the previous owner or their attorney, if anyone can reach them.
3. Ask the county Health Department whether there's a record for the address.
4. Call us. We can look at what's there and tell you what we see and what the options are.

How long it takes

Most of the calendar time isn't the work. It's everything around it:

1. Confirm there's a tank

   Look for the signs, or have us look. What to look for.

2. Estimate

   We look at the tank and call you with a price. Photos can speed this up.

3. Nassau: at least 7 days ahead

   Schedule the work and the inspection

   In Nassau, the county inspection has to be booked at least 7 days in advance. Suffolk has its own process under county code and Article 12.

4. The work

   Removal or abandonment. Most jobs take less than a day; removals take longer. We'll tell you how long your job will take when we price it.

5. Paperwork

   We file everything with the county and give you a receipt showing it was filed. Send it to your attorney right away. One to two weeks later, the completed work shows up in the county's online records, so your attorney or the buyer's attorney can look it up.

Bottom line: start the day you list the house, or before. Not the week of closing.

What to do first

1. Figure out whether there's a tank, and whether it's in the basement or buried.
2. Look for any old tank paperwork.
3. Ask your attorney what the buyer's side will want to see.
4. Get a free estimate. Start here, or call (516) 697-2392.
5. Give everyone the dates: your agent, your attorney, us.
6. Keep copies of everything with the house papers.

For executors

Estate houses are where tanks surprise people. The owner who knew the history is gone, the paperwork is who-knows-where, and the house has to be sold. Start with the steps above. We can work with you, the family, or the estate's attorney on access and scheduling.

For buyers

Ask the seller directly: is there, or was there, an oil tank? If it was closed, ask for the county paperwork. If the house was converted from oil to gas, ask what happened to the old tank. Walk the yard and the basement yourself. The signs guide tells you what to look for.