Underground heating oil tanks can pose many potential problems to both home buyers and sellers. They have been the source of many environmental problems such as contamination of surrounding soil and ground water.

Leaks are caused by the rust inside underground tanks, or by an electrical condition sparked by electric utility lines.

Buyers should be aware that many lenders will not approve a loan with an underground oil tank in place. Buyers who do not want an underground fuel tank can arrange for an above ground tank to be installed in the basement and the underground tank removed. Underground oil storage tanks that have not been used for the last 6 months are considered to be abandoned and by law will need to be removed.

For buyers, the underground heating oil tank should be written in the sales contract and whose responsibility it is to have it removed and by what date. For sellers, you need to disclose if there is an underground tank on the property, whether it is in use or not.