It was very common to use heating oil as a source of heat in homes built in the mid 1930’s through the 1980’s. The oil was stored in an above ground (AST) or underground (UST) oil storage tank next to the home or underground on the property. When the home’s heating system was updated to more efficient gas or electric heat, the tanks were shut off with the remaining oil left inside.
Today’s buyers and sellers should be aware of the status of oil tanks on property because oil leakage can contaminate the soil and ground water around the tank for years. North Carolina state law demands immediate clean up by a licensed professional when leakage is discovered or land use deed restrictions must be placed on a property. Deed restrictions from underground oil tank leakage can negatively impact the value of a home and property as well as its appeal to potential buyers.
The Triangle (Raleigh, Durham, and Chapel Hill areas) was one of the areas where heating oil was used most frequently. Chris Boshoff, President of Cohesion Environmental Services says that “The Department of Environmental Quality says there are anywhere from 200,000 to 500,000 oil tanks in North Carolina. By comparison, there are less than 50,000 gasoline tanks like you’ll find at gas convenience stores.” He estimates that, “More of 50% of the homes in the Triangle had heating oil. Durham is full of them as is Raleigh, Garner, Cary and Chapel Hill.”
Often a current owner may not even be aware there is a tank on their property because it was shut off before they owned the home. Boshoff goes on to say “This issue most often comes up during real estate transactions. Or a homeowner reports rain has leaked into the tanks, pushing oil into crawl spaces.”
Prior to negotiating the purchase or sale of your home, be sure to research the status of heating oil tanks. That way you can decide whether to remove the tank and possible contamination before the sale, or sell as-is. The Ryan Cassidy Group has handled many real estate transactions in the Triangle involving underground oil tanks. This is one of many issues our experienced real estate advisors can help you resolve with a minimum of stress and delay.