What happens to my oil tank when I sell?
Written and reviewed by Andrew Ragusa, Licensed Real Estate Broker and Broker of Record, REMI Realty LLC — 11+ years of transactions across Long Island, Brooklyn and Queens.
The short answer
Generally, an oil tank stays with the property when you sell, and the sale by itself does not automatically require the tank to be removed. What matters is the tank’s condition and history.
A tank that is leaking, no longer in use or was not properly abandoned can require attention, and an underground tank can raise concerns during the buyer’s inspection. Not every tank has the same requirements, so what applies depends on the tank and on the New York State and local rules for that property.
If you have installation, testing or abandonment records, gather them and share them with your attorney early. I explain where this fits in the Seller’s Playbook.
Oil heat is still common on Long Island, because many areas do not have natural gas. I have seen four outcomes. Some sellers convert to gas, remove the tank, and have a town certificate for the work. Some abandon the tank in place and have a certificate of abandonment from the town. Some leave the tank as it is and do nothing. Some remove it without the town paperwork. That last one opened a problem and required a town inspection. The attorneys worked out what had to happen next.
My job is to ask which of those it is before the house is listed, and to put the answer on the listing before an offer is made. A buyer who knows about the tank before they write cannot use it later to renegotiate. The seller answers the oil-tank questions on the Property Condition Disclosure Statement. I do not. Installation, test, and abandonment records go to the attorney early.