Legal Question in Real Estate Law in New Jersey

underground oil tank removal

We bought a mixed use building 5 years ago. In our original settlement papers, under the area of ''environmental representations,'' the seller said there were no underground oil tanks. We now have our building for sale. The potential buyers home inspector found some old piping coming from a stone basement wall. He suspects an underground tank. Our original settlement papers say:''All of the foregoing representations, covenants and warranties shall survive closing of title. If an underground tank is found, are they liable in any way to help with the costs of removing it? We have very little money. This is a nightmare. Can you advise us on a direction to pursue? Thanks so much, Sincerely, A. A of New Jersey


Asked on 9/10/08, 8:15 pm

3 Answers from Attorneys
John Corbett Corbett Law Firm LLC

Re: underground oil tank removal

The reason why the survival clause was included in your contract was to protect you against this situation. Exactly what the seller's obligation is depends on the wording of the clause relating to UST's. It is likely that the seller is responsible for the cost of removal. If there has been a hazardous material discharge, the seller may still be liable for all or part of the cleanup costs. Consult an attorney in your area who handles environmental cleanup matters. If you can't find one, call me.

See also: http://info.corbettlaw.net/lawguru.htm

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Answered on 9/10/08, 10:48 pm
Michael Berman Law Offices of Michael A. Berman

Re: underground oil tank removal

I'd like to say you are totally protected, but I'd need to see the entire document and review your insurance policy as well before making that type of guarantee. I practice in Southern NJ and would review and advise for a reasonable fee.

Mike

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Answered on 9/11/08, 4:07 pm
Miriam Jacobson Retired from practice of law

Re: underground oil tank removal

You need to consult with an attorney with experience in environmental matters to advise you. The seller's liability has to be evaluated, and you may have rights and liability also. Obviously, this will be a problem in your pending sale.

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Answered on 9/10/08, 10:11 pm


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