By Johanna Wiseman
“It was like this when I bought it,” is a common attitude homeowners use to justify their refusal to perform repairs. If the repair is not necessary from a health, safety, or legal perspective, that’s defensible. When new regulations affect a potential home sale, I’m positioned to provide information to my clients, for better or for worse. A good example is a homeowner whose property is or was once heated with tank-stored fuel.
Times change, and laws and common practices evolve. Once upon a time in New Jersey, a homeowner could hire someone to fill or remove a disconnected fuel oil tank (for example, after connecting to gas utility.) When selling, he or she might offer the buyer a receipt to verify the closure or removal. Today, this is legally regulated by the NJ Dept. of Environmental Protection, with certification requirements. Most buyers now hire professionals to perform ground-penetrating radar scans, known as “tank sweeps,” as part of their inspection process. If an underground tank is found, some buyers panic and can’t be persuaded to go forward with their purchase.
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Removal of a tank can be an expensive and time-consuming process. Waiting for the NJDEP-issued NFA (no further action) letter can easily delay a closing. Worst-case, the discovery of a leak will require remediation and additional tests with no guaranteed time frame. A seller can anticipate difficulty finding a buyer who is willing to complete a transaction without the proper certification. Reasons include legal liability, possible contamination, unknown cost of future remediation, and difficulty obtaining insurance.
When I represent a seller who knows or suspects that an oil tank may be present, I will warn them of the potential complications in advance, rather than allowing the problem to surface later. Sometimes I am the first person to raise the subject, and I am met with resistance. For an owner to avoid costly delays, one option is to proactively remove the tank and apply for certification. That way, he or she will not delay the closing or lose a qualified buyer. Several clients have taken my advice in this course. Even in an instance where an owner is unwilling to act, at least I have provided them with a warning of a future roadblock.
Homes being sold are expected to meet health and safety standards, which are evaluated during inspections and appraisals. When compliance is state-mandated, I believe it’s better for my clients to get the information in advance, and not be surprised in the middle of a transaction. In any case, a homeowner who is in possession of information can make an informed decision about the best course of action.
Local Expert Johanna Wiseman of RE/MAX Preferred Professionals can be reached at 908-705-0652, or visit www.MyBridgewaterHome.com
Johanna Wiseman
RE/MAX Preferred Professionals
908-705-0652
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