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Who Owns The Propane Tank?

By Nathan Gesner

Real Estate Broker/Owner with American West Realty and Management 12599

October 02, 2017 04:36 PM

It's often assumed the propane tank is owned by the homeowner. Real Estate agents or home sellers may misrepresent ownership of the tank in an effort to increase the selling price or appeal of their home.

The truth is, the vast majority of propane tanks in Cody, Wyoming are owned by the propane company and leased to the homeowner. This can lead to problems between the new homeowner and the propane company and has even resulted in legal disputes.

To avoid these issues, we recommend the Buyer contact the propane company identified on the tank and ask them about ownership. If the tank is unmarked, ask the Seller which company they are buying propane from since that is typically the company that owns the tank. If there is a disagreement between what the owner says and what the propane company says, you may want to let them hash it out before you buy the home!

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Grant Schneider

Performance Development Strategies - Armonk, NY

Your Coach Helping You Create Successful Outcomes

Hi Nathan - that is a good point. The current homeowner should be able to find that out.

Oct 03, 2017 11:07 AM

Nathan Gesner

American West Realty and Management - Cody, WY

Broker / Property Manager

Just one of many disclosures we need to be aware of. Thanks for commenting, Roy!

Oct 04, 2017 04:42 AM

Gabe Sanders

Stuart, FL
Will Hamm

Aurora, CO
Roy Kelley

Gaithersburg, MD

Nathan Gesner

American West Realty and Management - Cody, WY

Broker / Property Manager

What do you have painted on your propane tank, Sheila?

Oct 04, 2017 04:42 AM

Gabe Sanders

Stuart, FL
Will Hamm

Aurora, CO

Nathan Gesner

American West Realty and Management - Cody, WY

Broker / Property Manager

Grant, the Seller should already know if they are leasing it or owning it. If they lease it, there is a rental fee every year and it will have the name of the company plastered on it. But some Sellers don't say anything and like to give the impression it's owned so as to increase the value of the home. It's Buyer's responsibility to discover the reality.

Oct 04, 2017 04:44 AM

Will Hamm

Aurora, CO

Gabe Sanders

Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL

Stuart Florida Real Estate

Yes, this is an issue here in my area as well, Nathan. Leased tanks are always serviced by the tank's owner. Typically, the homeowner should see this on their propane bill.

Oct 04, 2017 04:46 AM

Roy Kelley

Gaithersburg, MD

Sharon Alters

Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL

Realtor - Homes for Sale Fleming Island FL

As Gabe said, this is a Florida issue also, Nathan. Who owns the propane tank is a question we also have to answer and the propane belongs to the Seller and can actually be an issue, but so far, all of our Sellers have just given whatever is in the tank to the Buyer.

Oct 04, 2017 06:51 PM

Roy Kelley

Gaithersburg, MD

Nathan Gesner

American West Realty and Management - Cody, WY

Broker / Property Manager

Gabe, it's not a difficult thing to figure out...as long as someone is asking the question.

Sharon, you bring up another good point: the propane gas. A 1,000 gallon tank could be holding a thousand dollars worth of propane. The buyer and seller need to agree - in writing - what happens to any remaining propane in the tank.

Oct 04, 2017 08:36 PM

Will Hamm

Aurora, CO
Gabe Sanders

Stuart, FL

Joe Pryor

The Virtual Real Estate Team - Oklahoma City, OK

REALTOR® - Oklahoma Investment Properties

I have had very few transactions involving a propane tank but when it has happened years ago we were on this from the beginning.

Oct 05, 2017 03:31 PM

Roy Kelley

Gaithersburg, MD

Scott Godzyk

Godzyk Real Estate Services - Manchester, NH

One of the Manchester NH's area Leading Agents

It is the same here Nathan Gesner and i always tell buyers it is to their advantage not to own it.

Oct 05, 2017 04:30 PM

Roy Kelley

Gaithersburg, MD

Joy Daniels

Joy Daniels Real Estate Group, Ltd. - Harrisburg, PA

What a great question. In PA our listing contracts have an area where we are supposed to write things that leased and propane tanks are listed in ( ). Still, I have seen it missed!

Oct 08, 2017 01:47 PM

Nathan Gesner

American West Realty and Management - Cody, WY

Broker / Property Manager

It's different in every market and important we all stay on top of our game. Thanks for commenting, Joy!

Oct 09, 2017 07:33 PM

Will Hamm

Hamm Homes - Aurora, CO

"Where There's a Will, There's a Way!"

Hello Nathan Gesner, I am with Joy Daniels, great question. I have not had to deal with that here so would not know.

Oct 10, 2017 05:10 PM

Susan Haughton

Long and Foster REALTORS (703) 470-4545 - Alexandria, VA

Susan & Mindy Team...Honesty. Integrity. Results.

Good reminder! Once had a transaction involving a propane tank (leased)...despite the contract spelling out very clearly that whatever was left in the tank transferred to the buyers (my clients) at closing at no charge, the sellers called the company and had them issue a credit to themselves for the amount left in the tank. Became one of the biggest headaches of the transaction, although not the only one.

Oct 14, 2017 04:26 AM

Nathan Gesner

American West Realty and Management - Cody, WY

Broker / Property Manager

That sounds like a rough one, Susan. Even when the terms are in writing, there's nothing stopping the parties from violating them. I hope it worked out!

Oct 14, 2017 06:27 AM

Debbie Reynolds, C21 Platinum Properties

Platinum Properties- (931)771-9070 - Clarksville, TN

The Dedicated Clarksville TN Realtor-(931)320-6730

This is something that comes up quite often in our area. The seller is to disclosure whether it is leased or owned.

Oct 17, 2017 06:36 PM

Hannah Williams

HomeStarr Realty - Philadelphia, PA

Expertise NE Philadelphia & Bucks 215-820-3376

Great information here Nathan Gesner it also should be in the seller disclosure

Oct 17, 2017 07:08 PM

Shahar Hillel

Encino, CA

Mortgage Consultant, Loan Officer.

Great information in this post.

Oct 18, 2017 12:16 AM

Sandy Padula & Norm Padula, JD, GRI

HomeSmart Realty West & Florida Realty Investments - , CA

Presence, Persistence & Perseverance

Great post that many agents need to remember when listing and selling a home with a fuel tank, including the reading of the fuel level.

Oct 18, 2017 06:07 AM

Debra Leisek

Bay Realty,Inc Homer Alaska - Homer, AK

In our world the propane tank is owned by the company that fills it... I think it is for safety reasons... you dont want to fill up an unsafe tank!

oil tanks are owned by the property owners...

all duly noted in the contracts!

Nov 01, 2017 10:08 PM

Jeff Pearl

RE/MAX Distinctive / LIC in VA - Lovettsville, VA

Full Service Full Time Realtor

Same scenario here. We bought our tank so we can shop around for whoever has the best prices on propane. When a propane company owns the tank, they are the only ones that can fill it, so homeowners have to pay whatever price they charge for gas.

Nov 02, 2017 03:18 AM