Question

9 years ago

We recently bought a new home. Before closing, there were issues with our oil heating system. It was determined that the underground tank was leaking and the DEQ was called in. The seller knew of this and signed off for them to do the testing. DEQ has now determined that the tank needs to be taken out of service. All DEQ will do is fill in the tank with concrete and leave it. We paid for this heating system and had it in the contract that it had to be in perfect working order before closing. The DEQ situation was not disclosed to us before closing at all. Isn't it the seller's obligation to pay for a new tank to be put in?

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tishtoshnm Zone 6/NM

9 years ago

It seems to me that the real question is how much time, effort and money are you willing to expend to see if the seller will pay for this. Before the closing, you sat in a position of power with the ability to delay until the issue was resolved. Now, you are in a position to consult with a lawyer to see if you can compel the seller to pay up but there are no guarantees that they can/will. It is certainly a tough spot to be in, sorry.

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Comments (10)

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Anglophilia
9 years ago
I don't know. I DO know that when my late DH was selling his parent's home after his father died, inspection showed a leak where an outside, underground oil tank once was. The soil all had to be removed and replaced. We always wondered if they just loaded up the dump truck, drove around for 30 minutes and then put the same soil back in the ground. It cost about $12,000 to do this in Westchester County 16 years ago.
greg_2015
9 years ago
last modified: 9 years ago
The issue started BEFORE you closed but wasn't resolved until AFTER you closed and you were never aware that there was an issue at all?

Seems like there was some serious disclosure failures and the seller should pay for it.
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deegw
9 years ago
So you bought a house with a known leaking oil tank and just found out because of a DEQ follow up? Definitely sounds like the sellers responsibility. What does your agent say about it?
ncrealestateguy
9 years ago
You state that it was in the contract that the system would be in full working order before closing. What was the reason that you closed on the home knowing that it was not repaired in accordance to the contract terms?
Linda
9 years ago
Why was there a closing before the test results were back? Seems silly to have the testing done and then close before you had answers. The new tank seems to be minor compared to the oil clean up that could be underground. Thats a big deal.
Sigrid
9 years ago
If the contract states the heating system has to be in full working order and it is not, then they have to remedy that.
User
9 years ago
last modified: 9 years ago
kerian, I'm confused. Have you actually closed on this home, with issues disclosed?
greg_2015
9 years ago
The DEQ situation was not disclosed to us before closing at all.

I think a lot of the confusion comes from this statement.

Do you mean:

(1) You had no idea that there was a DEQ investigation going on and that there was any potential for there to be something wrong with the tank. So you closed on the house while being total ignorant of the potential problem.

(2) You knew there was a situation, but you just weren't aware of the end result because the investigation wasn't done and you closed on the house anyways.

If it was (1) then you have a strong case.

If it was (2) then I have no idea. Closing shouldn't have happened until it was resolved or a definite contract was in place that discussed the responsibilities of each party once the full extent of the issue was discovered. Just relying on the typical wording in a typical real estate contract would not have been sufficient for me. Time to talk to a lawyer to see what the issues could be.
Suzieque
9 years ago
Don't fly-bys just annoy the heck out of you?