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.
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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.