Don’t let your closing get tanked by an abandoned UST!

Abandoned UST Issues Explained

UST sounds like a disease, doesn’t it?  Although, it can cause major issues on a purchase.  Therefore if a buyer uses a VA or USDA loan and the property has an abandoned UST, read closely.   Usually, the appraisal or the purchase contract will declare an abandoned tank exists.  If so, a qualified engineer must inspect the tank.  So an environmental study must be performed if a VA or USDA appraisal mentions the issue.  The engineer will comment on the tank and surrounding area as it conforms to the Environmental Protection Agency (EPA).  Then the property must meet all study requirements.  There are several possible requirements.  Initially, sand or other approved material could fill it.  Secondly, remove it completely.  Lastly there could be other type of requirements.

VA Actual Guideline for Underground Storage Tanks:

When there is an indication of a potential environment problem (e.g., abandoned underground fuel storage tank), the appraisal report must contain a requirement for correction of the problem in accordance with any local, state or federal requirements.

So you see an appraiser is required to mention this correction.

EPA Resources in regards to UST’s:

Here are links to some helpful EPA articles.

Underground storage tanks and VA & USDA

Preventing and detecting UST Releases

Cleaning up UST releases

Closing UST’s

Learn about the NC Superfund which may be able to help in environmental issues

Local Environmental Inspectors.  Porter Scientific Environmental Division, a division of Porter Scientific, Inc. specializes in providing environmental services caused by wastewater, storm water, solid waste and HAZMAT pollution. They deliver turnkey solutions to their clients. Through experience, cutting-edge technology and equipment, and customer satisfaction, Porter Environmental has created an outstanding track record of service to its clients and to the community. Many government agencies, municipalities, and commercial clients now depend on Porter Environmental to address their environmental compliance issues.

 

Author: Russell Smith

Team Move OVM Financial loan officer success is Russell’s primary focus. He provides the tools and techniques he used as a top producing loan officer. Additionally he offers the Team Move OVM Financial Agent Training Program. Sharing is so important to Russell so he works diligently to be a resource to loan originators and Realtors.