Legal Question in Real Estate Law in New Jersey

Underground Tank Liability

Hello.

I am about to buy a house in Union Cnty, NJ. The home has an underground oil tank in the yard put in when the house was built in 1950. I am closing on the home in 2 weeks.

Let's say next month when I am converting from oil heat to gas that an underground oil leakage spill is found costing tens of thousands in clean up.

Who is responsible for the costs? Me or the previous owner (previous owner is the original owner)? It should be noted, in the contract that I signed, that the seller certified that she is unaware of any past or current oil tank leakage into the envirnoment.

Is there a law that leapfrogs the potential cleanup costs back to the seller?


Asked on 10/29/02, 5:34 pm

1 Answer from Attorneys
Miriam Jacobson Retired from practice of law

Re: Underground Tank Liability

If you complete settlement on the property, and later find a leak from the tank, it will be primarily your responsibility to clean it up. You should try to get an agreement from the Seller, that will survive settlement, that the seller will be responsible for any cleanup. You already have the seller's representation that she doesn't know of any leaks.

The problem is, unless the seller is a person of means and you know how to locate her if and when you discover a problem, her agreement isn't worth very much.

You would be better off requiring that the seller remove the tank and do any cleanup at her cost before your settlement.

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Answered on 10/30/02, 1:51 pm


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