What is the significance of oil tank decommissioning in a BC residential transaction?
Correct Answer
C) Buried tanks can leak and create contamination liability; buyers should investigate, sellers disclose known tanks, and many BC municipalities require decommissioning
Many older BC homes (especially pre-1960s) had underground heating oil tanks. These tanks can corrode and leak, contaminating soil and groundwater, creating significant environmental liability and remediation costs (often $10,000-$100,000+). Many BC municipalities require decommissioning of abandoned tanks. Buyers should include oil tank investigation as part of due diligence, and sellers must disclose known tanks.
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