Before natural gas reached most streets, many homes on the North Shore and in Vancouver were heated with oil, kept in a steel tank buried in the yard. Many of those tanks are still there, decades after the furnace was replaced. A tank on its own is manageable. A tank that has leaked can be expensive. Here’s what buyers and sellers should know.
Which homes might have one
Any older detached home could, particularly homes built before natural gas was widely available. Clues include a fill pipe or vent pipe sticking out of the ground or the foundation wall, an old oil line through the basement wall, or a converted furnace. Many tanks leave no visible sign at all. Records of earlier removals, if they exist, are usually with the municipality or the fire department.
Why a buried tank matters
- Leaks. Steel tanks corrode. Leaking oil can contaminate soil, and sometimes neighbouring properties or groundwater, and cleanup costs can be significant.
- Insurance and financing. Some insurers and lenders ask about oil tanks and may want one removed before they’ll cover or finance the home.
- Municipal rules. They differ from city to city. In the City of Vancouver, heating oil tanks that haven’t been used for two years must be removed, under a permit; a tank can be abandoned in place only if the City agrees removal isn’t practical. The District of North Vancouver says it currently has no bylaw directly governing tank removal, that the owner is responsible for the costs and for any contamination, and that a soil permit is needed if more than 18 cubic metres of soil is removed or deposited. In West Vancouver and the City of North Vancouver, check the current requirements with the municipality before any work starts.
If you’re selling
BCFSA’s guidance is clear: a leaking oil tank may be a material latent defect, something a buyer couldn’t find with a reasonable inspection, and a seller must disclose a material latent defect they know about. The Property Disclosure Statement asks directly about underground tanks. Answer what you actually know, and don’t guess. See The Property Disclosure Statement.
If you know or suspect there’s a tank, many sellers find it simpler to have the property scanned, and the tank removed by a qualified contractor with the right permits, before listing. Keep the paperwork: the permit, the removal report and any soil test results. Buyers and their lenders will ask for them.
If you’re buying
- Ask. Read the Property Disclosure Statement, ask the seller for any removal records, and check with the municipality.
- Scan. A tank scan by a specialist uses detection equipment to look for buried metal. It’s inexpensive compared with what it can uncover, and it isn’t part of a standard home inspection. See Reading a home inspection.
- Use the right subjects. BCFSA notes buyers can make the purchase subject to a satisfactory environmental inspection, or negotiate a holdback from the price to cover removal and cleanup.
- Get advice on contamination. If soil testing shows contamination, talk to your lawyer and an environmental consultant before removing subjects.
Questions people ask
Who pays to remove a tank found after completion?
Generally the new owner, unless the contract says otherwise or the seller failed to disclose something they knew. That’s why the scan and the subject clauses come before you buy, not after.
Can a tank be left in the ground?
It depends on the municipality. In Vancouver, abandoning a tank in place needs a permit and the City’s agreement that removal isn’t practical. Lenders and insurers may have their own views. Ask the municipality what is permitted at that address.
Is a removed tank the end of it?
If the removal report and soil tests are clean, usually yes. Keep the documents with your home records; you’ll want them when you sell.
General information for buyers and sellers in British Columbia, current as of publication. Rules differ by municipality. Get advice from a qualified environmental professional and a lawyer for a specific property.