Why Oil Tanks in BC Properties Matter: A Guide for Real Estate Buyers and Sellers

If you're buying or selling a home in British Columbia, especially in older neighborhoods like Coquitlam, understanding the issue of oil tanks on residential properties is essential. Many homes built before the 1960s relied on oil heating systems, and underground storage tanks (USTs) were commonly used. Over time, as natural gas and other energy sources became more popular, many of these tanks were abandoned. However, the legacy of these tanks can pose serious environmental and financial challenges.

Why Oil Tanks Are a Concern

1. Environmental Risks

Underground oil tanks can leak over time, contaminating soil and groundwater. This pollution can spread to neighboring properties, causing widespread environmental damage and potential health risks. Cleanup costs for oil contamination can quickly escalate into tens of thousands of dollars.

2. Legal and Financial Liability

In BC, property owners are legally responsible for any contamination caused by an oil tank, even if the leak occurred decades ago or under a previous owner. This liability remains even after selling the property unless the issue is disclosed and addressed.

3. Challenges for Home Buyers and Sellers

Real estate transactions can be complicated by the presence of an oil tank. Buyers may hesitate to purchase a property with an abandoned tank due to potential cleanup costs. Similarly, sellers could face reduced offers or delays in closing if the tank isn't removed or disclosed.

Some signs that an underground oil tank might be present include:

• Filler Pipes: Look for capped pipes near the foundation or yard.
• Vent Pipes: Vertical pipes near the home exterior could indicate a buried tank.
• Unusual Depressions in the Yard: Sinking areas could signal a deteriorating tank underground.

If you're unsure, hire a professional to conduct a tank scan using specialized detection equipment.

1. Hire a Licensed Contractor
   Professional removal ensures compliance with BC regulations. A qualified contractor will obtain permits, safely remove the tank, and handle any contaminated soil.

2. Environmental Assessment
   After the tank is removed, soil testing ensures no contamination remains. If contamination is found, remediation must follow.

3. Documentation
   Keep records of tank removal and remediation. This documentation is crucial for real estate transactions and insurance purposes.

The Role of Oil Tanks in Real Estate Transactions

For Sellers

• Be Proactive: If you know there's an oil tank, have it removed before listing your home. Buyers appreciate transparency and may be more willing to negotiate.
• Full Disclosure: Under BC law, sellers must disclose known issues with oil tanks. Failure to do so can lead to legal disputes later.

For Buyers

• Conduct Due Diligence: If you're considering an older property, inquire about oil tanks. A tank scan or inspection can save you from unexpected costs.
• Negotiate Repairs or Removal: If an oil tank is present, consider asking the seller to remove it or provide financial compensation.

Impact on Home Insurance

Many insurance companies are reluctant to provide coverage for homes with oil tanks due to the risk of leaks. Some may outright deny coverage, while others may impose exclusions for pollution-related damages. Removing an oil tank can make the property more insurable and increase its market value.

Conclusion: Be Informed, Be Prepared

Oil tanks are a significant factor in BC real estate, especially for homes in older areas. Whether you're buying or selling, understanding the risks, regulations, and solutions associated with oil tanks can protect your investment and help avoid costly surprises.

Thinking of buying or selling in Coquitlam? At GVHomes.ca, we specialize in helping buyers and sellers navigate the complexities of the real estate market. Contact us today to learn how we can help you achieve your real estate goals!

About Omid and GVHomes.ca

As a trusted real estate professional specializing in Coquitlam and the Greater Vancouver area, I understand the unique challenges and opportunities in today’s housing market. With years of experience, I provide expert guidance to buyers and sellers, ensuring informed decisions and successful transactions. Whether it's navigating environmental concerns like oil tanks or finding your dream home, I’m here to help you every step of the way.

Ready to make your next move? Contact me at 604-773-7207 or visit GVHomes.ca to start your real estate journey with confidence.