A Guide to Oil Tanks (Above Ground and Underground)

Above Ground Oil Tanks

 Here is a link to the Massachusetts State oil tank laws

• Any unused oil tank must be removed prior to selling the property. As a buyers agent you should be making the Sellers agent aware that it must be removed properly prior to closing.

• When showing a home with an oil tank be sure to look it over for leaks: 

• Look for obvious leaks such as oil stains on the ground or floor under or around the tank and around the oil fired equipment. Remember to look under the oil tank at its bottom, as most leaks occur in the lower portion of the tank.Check for drip pan underneath .

• Typically Oil tanks rust from the inside out not the outside in. Rust on the exterior of a tank is not necessarily a problem.

• New MA laws require oil tank lines to have a sleeve or safety valve installed.

• If you have a client that is not crazy about the idea of Oil heat remind them that conversion to natural gas or propane may be an option. Guide them to the local gas company to look into their options.

• Recommend: Setting up an account with a company with an auto fill option. This will ensure when the companies get backed up in the winter months that your client will be taken care of.

  • Keep in mind that the oil company may require their own inspection of the tank with a contract . If there is anything not functioning safely they will require the owner to repair or replace at the owner's expense. 

 UNDER GROUND OIL TANKS

• It’s important to know that most underground storage tanks will last between 10 and 50 years depending on site conditions, tank material, and maintenance. They may eventually leak, which could contaminate the property and cost thousands to clean up. Even larger tanks specifically designed for underground use can leak if they do not have adequate corrosion protection, that’s why underground tank removals make sense for many property owners.

• Some lenders will still lend on properties that have underground oil tanks if they are in use and not leaking.Verify with Lender

• Life expectancy of an underground tank is 30 years. 

• The state of Massachusetts does not regulate underground oil tanks; however, many towns have rules in place to ensure tanks are operating safely and limiting impacts on the environment. Check with local Fire Departments.

• Specialty companies and some oil companies have equipment to test buried tanks for leaks. Soil testing, simple low-psi pressure-testing and sophisticated electronic testing are commonly used.

• If a seller says that an inground tank was removed. A TPH (Total petroleum hydrocarbons) test will be done on the soil when the tank is removed and sent to the lab. 

• Geo probing can be done if there is a suspected tank but can be very costly. Always check with the local Fire department to insure it was done properly  .

 Here is a link to our Preferred vendors list - See underground oil tank inspection and removal. (Insert Preferred vendors list Link)