Legal Question in Real Estate Law in Pennsylvania

Propane tank ownership in Pa

In 2000 I purchased my home from the original buyer. The home was built in 1993. On the property is a 500 gallon propane tank. There was no language in the property sale about the tank or it's ownership. Now I have the tank company claiming ownership of the tank and threaten legal action if I do not purchase propane from them. What are my rights in regards to the tank ownership and being able to purchase from any free market company?


Asked on 11/13/06, 9:54 pm

2 Answers from Attorneys

Matthew Kelly Kelly Law

Re: Propane tank ownership in Pa

They probably have ownership rights in the tank which means you cannot have another company fill it. The seller failed to tell you this, shame on your real estate agent for not asking about it (they should know better). Tell them to send you a copy of the contract which sets forth their rights - if no contract exists, you probably can claim ownership. You may or may not be bound by any existing contract as successor to the rights of the previous owner. After reviewing it (and provided you are not bound by it and you still do want to deal with them) tell them they are trepassing on your property and that they need to get the propane tank off your property by a date certain or you will seek rent from them and/or the costs of removing it. Alternatively, you can see if you can negotiate a favorable arrangement to buy propane from them or have another company of your choosing put their tank on your property and buy from them. Contact me to discuss further.

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Answered on 11/14/06, 10:02 am
Roger Traversa Arjont Group (Law Office of Roger Traversa)

Re: Propane tank ownership in Pa

You asked about ownership of a propane tank on private property.

Unless the propane company can establish a right to the property then the property would have been included in the sale. You need to check local and state law to see if there is an exception to transfer of such property. Also see if the propane company can establish any rights in the property, such as a lien against that property.

This is a case where you have to determine how much the fight is worth. Why not negotiate with the propane company? They want to sell you propane and you need to buy it. find out what the going price is and if they can match it. If they don't then won't match the price then don't buy from them.

Just be prepared because they may be able and willing to take legal action. Though the worst that can happen is that they get to repossess the tank (which they don't want). You have no obligation to due business with them and no obligation not to use the tank.

My guess is that the prior owner(s) may have had a contract with them and that contract may have included a clause about ownership of the tank. Since you bought the property without knowledge of that clause and could rightly assume that the tank was part of the sale then the propane company may have no claim against you. But that may not stop them from dragging you into court which would require you to hire an attorney.

Regards,

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Answered on 11/14/06, 11:24 am


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