GVRD Homes & Properties Have Oil Tanks That Must Be Removed?

(July 14, 2014 )

Vancouver Houses and Underground Oil Storage Tanks for Buyers

Our real estate team has extensive experience in all areas of real estate and construction in British Columbia including hazardous materials including asbestos abatement and oil tank removal.

Houses in Metro Vancouver and the Fraser Valley have Oil Tanks?
Up until the 1960′s most houses in Metro Vancouver and the Fraser Valley used oil burning furnaces. These furnaces had underground oil storage tanks periodically filled by tanker trucks. When Vancouver and other British Columbia jurisdictions began the switch to gas furnaces in the 1960′s, oil furnaces were removed and the underground oil storage tanks that fed them were either removed (best practice) or decommissioned.
If decommissioned, the tanks, often made of galvanized steel were supposed to be completely drained of oil.
I'm Buying a House in Metro Vancouver and the Fraser Valley. Why should I care about Underground Oil Tanks? IT CAN COST ME THOUSANDS?

Unfortunately, in many instances these tanks were NOT drained and over time these underground oil storage tanks began to leak oil.
This leaked oil is combustible (i.e. it can cause an Explosion or a Fire) and can contaminate soil and water (which is often the case) not only on the lot of house where it is located but of surrounding houses. If the Oil Tank is indeed leaking this can create a HUGE liability for a home owner or the Buyer of such a property and the province of B.C. has taken steps within its legislation to deal with all participants.

In Vancouver, if an underground oil tank is found on a property the oil tank has to be removed IMMEDIATELY and all the soil contaminated by the leaking oil has to be removed by a qualified Oil Tank Removal/Soil Remediation firm. This is not an inexpensive proposition! Our real estate team has extensive experience in all areas of real estate and construction in British Columbia including hazardous materials including asbestos abatement and oil tank removal. Have you have heard of nightmare contamination scenarios costing up to $100,000 or more?
But What Can Happen if I Try to Buy A House in Vancouver with an Underground Oil Storage Tank?

1. Can’t get a mortgage? If an oil tank is found, a potential buyer may not be able to get fire insurance on the property. If a potential buyer can’t get fire insurance, they will not be able to get a mortgage. Mortgage lenders will not lend on properties that can’t get fire insurance, because of the risk of a total loss in the event of a fire. If you remove subjects on a house and then an oil tank is found and the seller is not able/willing to remove the tank, you the buyer may not be able to buy the property because you can’t get a mortgage. This is when it gets very expensive and stressful.

2. On proverbial hook for THOUSANDS of DOLLARS of Environment Remediation costs? Even worse would be to buy the house only to realize your lot and the neighbours lots have been contaminated due to an Underground Oil Storage Tank. This remediation will be YOUR responsibility as the home owner. Have a look at the British Columbia Government Fact Sheet on Underground Oil Storage Tanks below for more details.
Keep it Safe and Simple. ALWAYS GET AN OIL TANK INSPECTION!

If you’re buying a house in Metro Vancouver and the Fraser Valley, ALWAYS get an Oil Tank inspection. Often, an oil tank inspector will not charge for an inspection (They make money removing the tank) and if there is a charge as of January 2014, the average seems to be around $150-$225. If an oil tank is found the Seller is responsible for having the tank removed and any contamination remediation and you the Buyer are safe.

If you ever have any questions whatsoever regarding oil tank removal or any aspect of buying, selling or maintaining you home and property in our beautiful British Columbia don’t hesitate to call or email our real estate team. Our passionate community team  have every imaginable type of professional experience and excellence to assist and advise you and your family with any and all of your real estate needs.



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