FAQ – “How can I best protect my clients if we suspect that there is a submerged oil tank?”
In this video Steve Jamieson, Managing Broker of RE/MAX Crest Realty Westside, details a recommended clause for your Contract of Purchase and Sale to cover the possibility of an underground storage tank (UST)
Here’s a brief summary:
Always address the possibility of a submerged oil tank in our market area of Metro Vancouver
Do not rely on the Property Disclosure Statement. The PDS is completed only to the best of the seller’s knowledge. The seller may not be aware of a tank, it may be under concrete, a patio or other renovation. Also, if your buyer finds that the seller misrepresented the facts, proving it can be lengthy and costly.
Give your buyer the option of hiring their own oil tank removal expert to search for a tank.
Using a clause such as “The seller warrants that there is no oil tank on the property…” is not recommended. While we see that clause used often, it does not cover the “what if” scenario. e.g. What if there is a tank discovered on the property prior to completion?
Watch the video for Steve’s recommended clause, which addresses:
- Access to the property
- Holdback if a tank is found
- Possibility of soil contamination
Please note: The Frequently Asked Question video series is used for training purposes within our group of RE/MAX offices. If you are licensed at a different brokerage, you must refer to your own Managing Broker for advice.