What Happens If a Buried Oil Tank Is Found During a Home Sale in Connecticut?
- Justin Birtwell
- Dec 24, 2025
- 3 min read
If you’re buying or selling a home in Connecticut built before the mid-1980s, there’s a decent chance an underground heating oil tank (UST) is hiding in the yard. These old steel tanks were standard for decades, but today they’re one of the biggest deal-killers in real estate transactions. Here’s exactly what happens when a buried tank is suspected—and how to keep the sale moving.
The Moment of Discovery
It usually starts during the home inspection. The inspector spots old copper lines in the basement, a vent pipe in the yard, or a patchy spot in the lawn. Sometimes a tank sweep (a quick magnetic scan) confirms it. Buyers immediately ask: “Is there contamination? Who pays to fix it?”
Step 1: Disclosure – The Seller’s Legal Duty
Connecticut law (C.G.S. § 20-327b) requires sellers to fill out a Residential Property Condition Disclosure Report before the contract is signed. Question #19 specifically asks about underground fuel storage tanks. If the seller knows (or should know) about a tank and doesn’t disclose it, they can be on the hook for:
A minimum $300 credit at closing
All removal and cleanup costs
Potential fraud claims and attorney fees
Honest sellers disclose early. Dishonest ones get caught—and pay dearly.
Step 2: Confirm the Tank Exists
Buyers hire an environmental company to perform a tank sweep using ground-penetrating radar or magnetometers. Cost: $300–$500. Takes about an hour. You’ll get a map showing if a tank is really there and roughly how big it is (usually 275, 550, or 1,000 gallons).
Step 3: Test for Leaks
If a tank is found, the next question is: “Did it ever leak?” Soil borings are taken from beneath where the tank sits and along the fill/vent pipes. Samples go to a state-certified lab for Extractable Total Petroleum Hydrocarbons (ETPH) analysis. Cost: $600–$1,200.
The Two Possible Outcomes
Scenario A: The Tank Is Clean (Most Common)
Tank is pumped, cleaned, and removed (or legally abandoned in place with foam/sand).
Soil tests come back below residential cleanup levels.
Contractor issues a closure report with lab results.
Sale continues, usually with the seller covering the $2,000–$4,000 cost.
Scenario B: Contamination Is Found
Immediate notification to CT DEEP’s spill hotline (860-424-3028).
Licensed remediation contractor excavates stained soil.
Costs skyrocket: $10,000–$30,000 for minor leaks, $50,000–$100,000+ for major ones.
DEEP oversees the cleanup until a “No Further Action” letter is issued.
Closing is delayed weeks or months, but most deals still close once resolved.
Who Pays?
Almost always the seller. Buyers have powerful inspection contingencies in Connecticut contracts. If the seller refuses to handle the tank, the buyer can walk away and get their deposit back—or negotiate a significant price reduction.
Pro Tips for Sellers
Get ahead of it. Remove and test the tank before listing. A clean closure report is pure marketing gold.
Budget $3,000–$5,000 just in case. It’s cheaper than losing a buyer.
Pro Tips for Buyers
Never waive the tank sweep on homes built before 1990.
Add specific language to the contract: “Seller to remove any underground tank and provide clean soil tests prior to closing.”
Work with a real estate attorney who understands oil tank issues—many do in Fairfield, New Haven, and Litchfield counties.
The Bottom Line
A buried oil tank doesn’t have to kill your deal in Connecticut. It’s a common, solvable problem. With proper disclosure, testing, and a licensed contractor, most homes close smoothly—often in just a few extra weeks.
Have questions about a specific property? Feel free to reach out or contact CT DEEP directly.
The sooner you know, the smoother the transaction goes.
Originally published December 2025 – Information based on current CT DEEP guidelines, State Fire Prevention Code, and standard real estate practices in Connecticut.
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