Oil Tank Full Disclosure Tips When Selling Your NJ Home
New Jersey is hoping there’ll be 100% clean energy across the state by 2050. This is according to the New Jersey Energy Master Plan.
Implementation of the Plan means converting current heating systems to electric heat pumps. About 85% of homes currently use other systems including heating oil and natural gas.
Your home may be one of them. But if you’re selling, you may be breathing a sigh of relief as you avoid this extra expense. But maybe you shouldn’t.
The transition from heating oil means buyers will want to safeguard themselves. You should too as a seller with oil tank full disclosure. Here are a few tips to guide you.
Disclosure Obligations in New Jersey
In New Jersey, when selling a home, there are disclosure obligations. This includes revealing any physical defects or issues the house may have. Some states have a list that covers various items but New Jersey does not.
Oil Tank Full Disclosure Tips
Underground oil tanks were prevalent in many New Jersey homes before the 80s. If you have one, whether active or decommissioned, you’ll need to disclose this. This can help you to avoid legal ramifications later on.
There’s usually a disclosure form you fill out, and it includes a section about oil tanks. Remember, lack of knowledge doesn’t preclude you from legal consequences. If you’re not sure if your property has an oil tank, you’ll need to find out.
If You Have a Home Oil Tank
If you’ve had a home oil tank for years without any issues, then it shouldn’t become one when selling your home. However, a purchaser may want to ensure there are no leaks.
You can do this by having the soil tested. Oil in the soil may indicate a leak. If there is a leak you’ll be responsible for cleaning it up.
Not Sure? Find Out
Uncertain whether your home has a tank? Don’t assume it doesn’t. This helps you to avoid including false information on your disclosure form.
There’ll be tell-tale signs if there is one. Look for a vent or oil fill pipe. You can also hire a company to determine if there is a tank underground.
Ensure the Tank Is Empty
If you do discover an unused tank, if it isn’t empty, you’ll have to check for leaks. You’ll need to remove the oil from the tank. The potential buyer will also need to see documentation reflecting this.
This would include receipts from the company that removed the oil. If you removed the oil yourself, you can provide receipts from the oil recycling company. You can then opt to leave the vent line in place or decommission the tank.
Remove the Tank
To be on the safe side, you also have the option of removing the tank at your expense. This may help you to sell your home faster. Otherwise, a buyer may request it as it may be a mortgage and insurance requirement.
Sell Your Home Without Consequences
Now may be a great time to sell a home in New Jersey as property prices continue to rise. However, you’ll want to do this without any consequences. You’ll need to ensure oil tank full disclosure before the sale.
This may involve finding out if there is an underground oil tank on your property. The age of your home may be a good indication. But err on the side of caution.
Hire a company that can find out if there is a tank. If you already have a home oil tank the company can also check for leaks. Make sure the company you choose has the experience required.
All American Environmental does. We’re an environmental consulting company that provides a range of services. This includes soil testing and oil tank cleaning and removal. Contact All American Environmental today to ease your mind before you list your home.