Introduction
When selling a property in New Jersey, the presence of an above-ground oil tank (AGOT) can raise several concerns for both sellers and buyers. Understanding the implications, costs, and necessary steps can help ensure a smooth transaction.
Is It Mandatory to Remove an AGOT in NJ?
In New Jersey, it is not mandatory to remove an AGOT before selling a property. However, sellers should be aware of potential issues that may arise if the tank is not removed.
Issues If the Seller Does Not Remove the AGOT
- Financing and Insurance Challenges: Buyers may face difficulties obtaining a mortgage or insurance for properties with AGOTs due to perceived risks.
- Environmental Concerns: AGOTs, while generally less risky than underground tanks, still pose a risk of leaks and environmental contamination, potentially leading to costly cleanups.
- Marketability: Properties with AGOTs may be less attractive to potential buyers, affecting the property’s market value and saleability.
Selling Property with an AGOT
- Permissible: Sellers can legally sell properties with AGOTs, but they must disclose the presence of the tank to potential buyers.
- Buyer’s Responsibility: Buyers may negotiate the removal of the tank as part of the sale agreement or decide to handle it post-purchase.
Costs and Permits
- Removal Costs:
- AGOT Removal: Typically ranges from $500 to $2,500, depending on size and complexity.
- Cleanup Costs: If contamination is present, cleanup can range from a few thousand to tens of thousands of dollars.
- Permit Costs:
- Removal Permits: Usually cost between $50 to $200, depending on the municipality.
- Who Can Remove the Tank:
- Licensed Contractors: Removal should be performed by a licensed and certified environmental contractor experienced with AGOT removal and local regulations.
Examples of AGOT Removal Companies in NJ
- Oil Tank Services: Specializes in the removal and remediation of oil tanks.
- Tank Solutions: Offers oil tank removal, installation, and remediation services.
- EnviroSafe: Provides comprehensive environmental services, including oil tank removal and soil remediation.
Conclusion
Selling a property with an AGOT in New Jersey requires careful consideration and planning. By understanding the potential issues, costs, and necessary steps, sellers can better prepare their property for sale and ensure compliance with environmental regulations. Consulting with a real estate attorney or an environmental professional can provide additional guidance and peace of mind throughout the process.