The old town and surrounding post-war suburbs of many cities provides countless opportunities for the unexpected when selling and purchasing vintage homes. As an architect experienced in preservation and the renovation work of older structures, I have a tendency to look for the trouble spots of a building first. As a Realtor I'm conscience of trying not to find trouble, queer the deal, or get in the way of a contract. I do wish to protect my client's interests while avoiding panic. Most of the time, problems that are detected can be remedied by not overreacting and understanding the facts.
I have found through my years in real estate that many agents are not well educated when it comes to Underground Storage Tanks - no disrespect intended, but a little education can make a difference. In most instances when a home owner tells the listing agent the house is supplied by gas or electric fuel they take them at their word and continue the interview about the property. The same thing happens when a buyer's representative visits a property where the listing brochure indicates electric or gas fuel. When a tank is discovered agents are not sure how to respond and sometimes overreact unnecessarily.
Agent responsibility and culpability aside, often a good home inspector can tell if a home was once supplied with fuel oil. In some instances they can tell you if there still is or could possibly be an underground storage tank present. Evidence includes abandon supply lines, converted boiler units, concrete stains, exterior vent stacks or fill valves. It's all a matter of knowing what evidence to look for in and around the home. This evidence may warrant further investigation by a purchaser. Once there is discovery, contacting a qualified, reputable environmental engineer is the next step.
There are instances of course where no evidence of a past UST is present; while the age of the house, typical neighborhood conditions, or the possibility of an above ground tank may indicate otherwise, we have to go on the documentation or word of the seller. In this case it's up to the purchaser as to whether they wish to proceed with further testing or investigation - Virginia is a buyer-be-ware State.
The point to all this is that of discovering the point of responsibility, or the "Responsible Party" (RP). I have had several sellers come to me after discovery of a UST, saying "the agent who sold this property assured me there was no underground tank; how could there possibly be one now" or more likely "how could they possibly miss something you saw in five seconds"? Now they have become the State's RP instead of the previous owner. This is unfortunate and unnecessary, and they are probably not too pleased with the agent who sold them the home.
The point of responsibility simply means the current owner of the property goes on record as the "Responsible Party" for the UST. It is unlikely if the tank is properly addressed, but they are the party the State will engage should something go wrong, now or in the future. John Pollard, of Pollard Environmental, LLC, states that 70% of the UST's still in use have been found to be leaking; 80% of tanks abandoned are leaking or had leaked at some time. For more information about contamination and remediation you can visit their website at http://www.pollardenvironmental.com/risk_iss_res.htm .
Fortunately, Virginia has been proactive in the removal or remediation of UST's. All of this started as part of the efforts to save the Chesapeake Bay through the "Chesapeake Bay Preservation Act of 1988". While there is no legal requirement to have existing tanks inspected for leaks, it is in the best interest of purchasers to have them inspected. If a seller knows one is present, it is a matter of disclosure. The seller may as well have it tested and remediate it in accordance with Department of Environmental Quality (DEQ) recommendations. Local codes like the BOCA National Fire Prevention Code and the Uniform Statewide Building Code, as well as local ordnances, may also be applicable.
To assist the RP, there is currently financial assistance through the Virginia Petroleum Storage Tank Fund (VPSTF). There is a deductible of approximately $500 but the remainder of the work is covered by the Fund. Some remediation companies charge additionally for costs outside the Fund, but these costs should not be a "deal breaker". After all, the goal is to sell the house.
UST's are only one obstacle face by people working with older homes, but if you love established neighborhoods and the character of vintage architecture, this kind of thing should not prevent you from purchasing or selling a property. Speak to your professional Realtor, get another expert involved if necessary, kick the pebble off the path, and make the deal happen!
For more insight, information and any questions on this and other important issues, please contact your most valued real estate professional, we are here to serve you!
Sources: Virginia Department of Environmental Quality; Chesapeake Bay Act of 1998; Pollard Environmental, LLC John VanderSyde is an Associate Broker with Virginia Properties, A Long & Foster Company, and a Licensed Architect. He and his wife Ann are in business together in Richmond, Virginia.
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