Condition of Oil Tank Not Fully Disclosed

[cwsw013]

What is the name of your state? Delaware

Settled on a new home on 12/27/2007. The home has a underground oil tank. We were concerned about tank from the beginning. Our initial offer included a request to have the underground tank decommissioned and a new above ground tank installed. The seller responded with an estimate for decommissioning the tank, and a replacement, and offered cash instead. They also proved the last heating service record which showed the system was cleaned (11/24/2007) and the nozzle replaced. They also had a tank integrity test done which showed that the tank did have any measurable leaks (to some degree of accuracy). Once we had a contract, we had a home inspection done, that tested the heating system, and marked everything as satisfactory.

On 01/29/2008 the house lost heat. A service tech found the internals of the heater covered in soot. Both the nozzle and filter were clogged. And the system took some convincing to get going again. The service tech gave the opinion that we needed a new tank because ours most likely had a build up of sludge, and that sludge was clogging the system. Also it was noted that the nozzle on the system, was not to the spec and was much larger then the sized called for the burner we have as identified on a sizing chart on the heater.

Today 02/17/2008 we awoke to no heat again. The nozzle was clogged once again and the filter was in bad shape as well. The service tech agreed with the previous tech that it was obvious there was a sludge problem. And this clogging quickly followed an oil delivery which commonly stirs up the sludge in the tank.

It is my belief that the sellers had to of been aware of the sludge build up in the tank, that is not discernible in normal home inspection (how cold it be, unless the system clogged while the inspector was present?), and that they should of disclosed this condition to us.

I had to leave to go out of town, but when I return I plan to visit the previous service company to request the service records. Unless the previous owner was proficient in replacing the nozzle and filter himself (he was a carpenter) I there has to be records of service calls somewhere.

I've had to spend about $400 on service calls because of blockages. I am not keen on replacing the tank because of the rising price of heating oil, I would like to use my money to convert to another form of heat.

What kind of recourse do I have if by beliefs are correct? Is it reasonable to think that a sludge build up in a tank should be disclosed?

[OnceUponATime]

Originally Posted by cwsw013

Our initial offer included a request to have the underground tank decommissioned and a new above ground tank installed. The seller responded with an estimate for decommissioning the tank, and a replacement, and offered cash instead. They also proved the last heating service record which showed the system was cleaned (11/24/2007) and the nozzle replaced. They also had a tank integrity test done which showed that the tank did have any measurable leaks (to some degree of accuracy). Once we had a contract, we had a home inspection done, that tested the heating system, and marked everything as satisfactory.

What kind of recourse do I have if by beliefs are correct? Is it reasonable to think that a sludge build up in a tank should be disclosed?

You were offered cash for the tank replacement, what are your damages?

[cwsw013]

I'm trying to trace back through the offers and counter offers, the money ear marked for the tank actually disappeared, as we continued negotiating, their counter offer to our request for replacement of the tank was $1200 however the tank language never made it into the final contract. The estimates they provided for a new tank and filling the old one with sand (not sure if that is within code) was $1750.

I've had to pay about $400 in service calls relating to the clogs so far. So the damage to me $2150.

[OnceUponATime]

I think your chances are slim to none. The offer to replace the tank shows there was an issue with it, or disclosure. If you agreed to the final contract with the tank verbage removed, I don't see how or why you think the seller is now responsible?

Did you happen to obtain a home warranty?

[cwsw013]

Originally Posted by OnceUponATime

I think your chances are slim to none. The offer to replace the tank shows there was an issue with it, or disclosure. If you agreed to the final contract with the tank verbage removed, I don't see how or why you think the seller is now responsible?

Did you happen to obtain a home warranty?

There is a home warranty but buried tanks aren't covered.

They put effort into comforting us about the tank, yet never disclosed the sludge, thats why I think they are responsible.

[tranquility]

With the replacement tank considered somewhere in the negotiations and the fact that you would have to prove the seller knew about the sludge, I think there are real problems in trying to collect. The seller will claim he didn't know, but wanted to assuage your fears by negotiating the price. He will say the final price reflected the replacement of the tank.

Still, it's a small claims amount. You could always try with little expense. Don't get emotionally involved and you will be fine. If you're angry, a court case will just make you angrier and it won't be worth it to you.

[cwsw013]

Originally Posted by tranquility

With the replacement tank considered somewhere in the negotiations and the fact that you would have to prove the seller knew about the sludge, I think there are real problems in trying to collect. The seller will claim he didn't know, but wanted to assuage your fears by negotiating the price. He will say the final price reflected the replacement of the tank.

Thank you, I hope to talk to there service company once I'm back from my business trip, if they have records of clogs, then I may move forward, otherwise I know I can't do anything.