“The Home Inspector Found an Underground Storage Tank… Now What?”
One of the most common calls we receive from real estate agents is not necessarily about a defect itself, but about what happens next after something unexpected is discovered during the inspection process.
This week, a local real estate agent reached out with a question that catches many buyers and sellers off guard.
Agent Email:
Hey Dave,
We’re under contract on an older home, and the buyer’s home inspector discovered what appears to be an underground storage tank in the backyard. My sellers had absolutely no idea it was there.
Naturally, everyone is now a little nervous.
What are the next steps in a situation like this? Is this something your company handles, or do we need a specialist?
Trying to keep everyone calm while also figuring out what’s reasonable here.
Thanks!
*Carolyn*
Local Realtor®
Our Reply:
Hey Carolyn!
First, take a deep breath. The good news is the tank was discovered before closing, which is exactly why inspections matter.
Underground storage tanks are more common than many people realize, especially around older homes that may have originally used heating oil decades ago. Many of these tanks were abandoned long ago and simply forgotten about over time.
The first step is identifying whether the tank is still active or abandoned. In most cases, these are older inactive heating oil tanks that were buried years ago when homes converted to electric or gas systems.
From there, the next step is usually contacting an environmental contractor or underground storage tank removal company. They can evaluate the tank and determine the safest and most cost-effective path forward.
Typically, with Underground Storage Tanks, the process involves:
* Locating and exposing the tank
* Determining whether fuel remains inside
* Removing the tank properly
* Inspecting for signs of leakage or soil contamination
* Removing contaminated soil if necessary
* Backfilling and restoring the area
Ironically, the removal of the tank itself is often the largest expense. If the tank remained intact and did not leak, the situation is usually manageable and far less dramatic than buyers initially fear.
In some cases, soil testing may also be recommended, especially if there is evidence of staining or leakage. The primary concern is preventing contamination from spreading into the surrounding soil or groundwater.
The important thing to remember about Underground Storage Tanks is this:
The inspection did exactly what it was supposed to do.
It identified a hidden condition that neither party was aware of before the transaction closed. That gives the buyer and seller an opportunity to properly evaluate the situation instead of inheriting an unknown environmental issue later.
Older homes always tell stories. Sometimes those stories are underground.
Cheers,
Dave
Final Thoughts on Underground Storage Tanks
Discovering an underground storage tank during a home inspection can sound alarming at first, but many situations turn out to be relatively straightforward once evaluated properly.
The key is not panic. The key is information.
This is another reason why thorough inspections matter, especially on older homes where hidden systems, abandoned components, and past building practices may still exist beneath the surface.
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