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Buried Oil Tanks, Insurance and Your Mortgage

Short answer: Homeowners insurance may exclude tank leaks and pollution cleanup1,2; lenders may make the appraisal subject to inspection3; title insurance doesn't cover contamination2.

Details

  • Disclosure: PA sellers must disclose known material defects on the property disclosure statement4.
  • Lenders: under Fannie Mae's guide, when an appraiser knows of a hazardous condition, the appraisal must note it and be made "subject to" inspection by a qualified professional3. Lenders may ask for testing, soil sampling, or removal/closure documentation1.
  • Insurers: standard homeowners policies may exclude gradual leakage and pollution cleanup1,2.
  • Title insurance covers title defects, not contamination in the soil2.
  • Environmental risk: a leaking tank turns a routine job into a cleanup project5.

What to have ready

Sweep results, soil test results, and a removal or closure report1.

FAQ

Can I sell a house with a buried oil tank in PA?

State law doesn't prohibit it, but you must disclose known material defects4, and the buyer's lender may require inspection or documentation3,1.

Get a free quote

Tell us where the tank is (basement, side yard, buried, or unknown) and whether you're buying, selling, or refinancing. Allentown Tanks will connect you with a qualified local tank contractor. (215) 434-1322 · Request a quote

Sources

  1. Kash Mortgage Group, PA buyer guide
  2. Flagstone, Philadelphia oil tank guide
  3. Fannie Mae Selling Guide B4-1.4-08 Environmental Hazards Appraisal Requirements
  4. 68 Pa.C.S. §7303 seller disclosure
  5. Curren Environmental, PA oil tank removal cost
  6. Act 32 §103 (UST definition excludes heating oil for consumptive use)
  7. 25 Pa. Code §245.1 definitions
  8. PA DEP Storage Tank Data ("Home heating oil tanks are not regulated")
  9. PA DEP Installer/Inspector Certification (certified company list)
  10. PA DEP Storage Tanks Financial Assistance (Underground Heating Oil Tank Cleanup Reimbursement Program)
  11. PA DEP, Apply for Oil Tank Cleanup Reimbursement
  12. Harned Durham Energy, heating oil tank removal cost

Sources accessed 2026-10-25 by TANKER Traffic.

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