BIC TIP #1174: The UST and Me

Yes, Stephen Long is still on the boat. He records these in one go on a Sunday, and on Sundays he is on the lake, so do not judge. This tip, though, is all about what is under the ground: underground storage tanks. Stephen has run into them many times, and they are a material fact you need to discover and disclose.

Listing Agents: Take a Walk

If you are the listing agent, do not just measure the house and snap the photos. Take a walk around the yard. Look for any pipes sticking up out of the ground. An underground storage tank is material, and it is your job to discover it and disclose it.

Ask your seller, too. They may know exactly where the old tank is, whether it is still in use, or whether it was ever addressed. Then make sure that information gets into the hands of buyers.

Buyer Agents: Do Not Just Trust the Listing

Buyer agents, this one is for you as well. Do not simply rely on the listing agent having walked the property. You too need to do a quick peruse around the yard looking for material facts like underground storage tanks that may not have been discovered or disclosed.

If you spot something, tell your buyer, and recommend they look into it during the due diligence period with the right professionals.

What a Tank Looks Like

Stephen’s field guide is simple. See that little pipe sticking up in the yard with a little flappy lid on it? That is probably an underground storage tank, and very likely an old oil tank. Check it out.

And it is not just oil. Stephen points out that propane tanks are getting buried these days too. A buried propane tank is another underground storage tank and another material fact that future buyers deserve to know about.

The Practical Takeaway

Every property visit, take a lap. Look for vent pipes, fill caps, and flappy little lids in the yard. Whether you are listing or buying, discover and disclose. Make sure buyers understand what is underground before they own it, and encourage them to investigate during due diligence.