Why is it important for a buyer to know if an underground storage tank is present on a property?

The primary concern with underground storage tanks (USTs), especially older ones, is the significant environmental and financial risk they pose. Tanks, particularly those made of bare steel, can corrode over time, leading to leaks of their contents (e.g., heating oil, gasoline). A leak can contaminate the surrounding soil and groundwater, which is a serious environmental hazard. The current property owner, and potentially a new buyer, can be held liable for the substantial costs of investigation and remediation, which can run into tens or even hundreds of thousands of dollars. This potential liability makes the presence of a UST a material fact in a real estate transaction.

A. Buyers don't need to know.

This is false. The presence of a UST is a material fact due to the significant environmental and financial liability it represents.

C. The buyer may want to use the tank.

While possible, potential utility is a minor consideration compared to the overriding risk of contamination and the associated cleanup liability.

D. The buyer will need to check if the tank is correctly sized.

The tank's size is a functional detail; the critical issue is its structural integrity and the potential for environmental contamination, not its capacity.

1. Maryland Department of the Environment (MDE). A Homeowner's Guide to Underground Storage Tanks. This official state document explicitly warns of the risks. It states, "A leak from a UST can contaminate soil and groundwater... Cleanup of a petroleum release can be very costly." (MDE, Oil Control Program, Page 1, "Why should I be concerned about my UST?").

2. University of Maryland Extension. Environmental Liability and Real Property. This publication discusses landowner liability under environmental laws. It highlights that "past and present owners of contaminated property can be held liable for cleanup costs regardless of who was responsible for the contamination," underscoring the importance of due diligence for buyers regarding potential sources of contamination like USTs. (University of Maryland, Agriculture Law Education Initiative, FS-979, Section: "Who is Potentially Liable?").

3. U.S. Environmental Protection Agency (EPA). Real Estate Transactions and Underground Storage Tanks. This federal guidance document, often referenced in academic and state-level training, notes, "Leaking underground storage tanks (USTs) are a significant source of environmental contamination and may present a risk of fire and explosion." It emphasizes the importance of identifying these risks during property transactions. (EPA, Office of Underground Storage Tanks, EPA 510-B-14-001, September 2014, Page 1).