Underground heating oil tanks can pose many potential problems to both home buyers and home sellers. These underground storage tanks have been the source of many environmental problems. A leaking tank can contaminate the surrounding soil and may even contaminate ground water.
Underground tanks may start leaking from rust inside the tank, and buried underground electric utility lines can cause an electrical condition that also results in tank holes.
Buyers of a house with an underground fuel tank should have the tank inspected to make sure that it is structurally sound. Buyers who do not want an underground fuel tank can arrange for an above ground tank to be installed in the basement, and have the underground tank closed, or can change to natural gas, and again, have the underground tank closed. Cleanups of any leaks will also have to be taken care of.
If you do decide to buy a house with an underground heating oil tank, your lawyer should refer to it in the sales contract, and include warranties relating to the tank. For the seller, your lawyer should make sure that any and all representations made about the tank are accurate.