When buying or selling a home in Minnesota, one critical—and often overlooked—issue is the presence of underground oil tanks. These hidden tanks can pose serious environmental, legal, and financial risks. If you’re involved in residential real estate in Minnesota, whether as a homebuyer, homeowner, or real estate investor, understanding the impact of underground storage tanks (USTs) is essential.
What Is an Underground Oil Tank?
An underground oil tank is a large container buried underground, typically used decades ago to store heating oil. These tanks were common in Minnesota homes built before the 1970s, especially in older neighborhoods like Saint Paul, Duluth, and parts of Minneapolis.
Over time, these tanks can corrode and leak, contaminating soil and groundwater. This can lead to expensive cleanup costs, decrease your home value, and complicate real estate transactions.
Why Should Minnesota Homebuyers and Sellers Be Concerned?
1. Environmental Hazards
Leaking underground oil tanks can release hazardous materials into the soil and water table. This contamination can result in fines, mandatory cleanup by the Minnesota Pollution Control Agency (MPCA), and even lawsuits.
2. Financial Liability
The cost to remove or remediate a leaking tank can range from a few thousand to tens of thousands of dollars. In Minnesota, liability often falls on the property owner—even if the tank is no longer in use.
3. Real Estate Transaction Issues
Lenders, insurers, and buyers may hesitate or back out of a real estate deal if a UST is suspected. Many buyers now require tank inspections as part of their home inspection contingency.
How to Check for Underground Oil Tanks in Minnesota
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Property Records: Ask your real estate agent or check with the county assessor’s office for any history of oil heating systems.
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Visual Clues: Look for old fill pipes, vent pipes, or capped lines near the home’s foundation.
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Professional Tank Sweep: Hire a licensed environmental inspector or tank removal specialist to conduct a sweep using ground-penetrating radar (GPR).
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Disclosure: Minnesota real estate disclosure laws require sellers to inform buyers about known environmental concerns—including underground oil tanks.
What If a Tank Is Found?
If you’re a Minnesota homeowner, it’s wise to proactively remove an unused underground tank to avoid future complications. If you’re a homebuyer, factor in the cost of removal and potential cleanup into your offer—or negotiate that the seller handles it prior to closing.
Contact the Minnesota Pollution Control Agency (MPCA) or work with an experienced Minnesota real estate professional who can help guide you through the process of testing, removal, and proper documentation.
Final Thoughts
Whether you’re buying your first home in the Twin Cities, selling a historic property in Rochester, or investing in real estate in greater Minnesota, understanding the risks and responsibilities tied to underground oil tanks is crucial. Protect your investment and your peace of mind by identifying and addressing these hidden hazards early in the process.
If you suspect an underground oil tank on your property or want to be proactive before listing your home, reach out today for expert guidance.
– Jordan Eatherton, Apex Realty Team